Cost of business start-up procedures, male (% of GNI per capita) - Country Ranking - Africa

Definition: Cost to register a business is normalized by presenting it as a percentage of gross national income (GNI) per capita.

Source: World Bank, Doing Business project (http://www.doingbusiness.org/).

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 Somalia 203.60 2017
2 Chad 171.30 2017
3 Central African Republic 154.70 2017
4 The Gambia 128.20 2017
5 Zimbabwe 110.00 2017
6 Equatorial Guinea 103.40 2017
7 Comoros 84.10 2017
8 Congo 77.70 2017
9 Guinea 67.50 2017
10 Togo 66.00 2017
11 Mali 58.40 2017
12 Ethiopia 57.80 2017
13 Guinea-Bissau 48.90 2017
14 Malawi 44.60 2017
14 Rwanda 44.60 2017
16 Tanzania 42.90 2017
17 Burkina Faso 42.60 2017
18 Sierra Leone 36.20 2017
19 Madagascar 35.80 2017
20 Cameroon 35.50 2017
21 Djibouti 35.20 2017
22 Zambia 34.20 2017
23 Burundi 33.90 2017
24 Senegal 33.80 2017
25 Uganda 33.60 2017
26 Libya 30.30 2017
27 Nigeria 28.80 2017
28 Dem. Rep. Congo 28.60 2017
29 Sudan 27.80 2017
30 Eritrea 27.00 2017
31 Kenya 26.30 2017
32 Mauritania 19.30 2017
33 Mozambique 18.10 2017
34 Ghana 17.50 2017
35 Angola 17.40 2017
36 Côte d'Ivoire 16.50 2017
37 Swaziland 16.40 2017
38 Liberia 15.70 2017
39 Cabo Verde 15.40 2017
40 Seychelles 13.20 2017
40 São Tomé and Principe 13.20 2017
42 Namibia 11.30 2017
43 Algeria 11.10 2017
44 Niger 8.30 2017
45 Morocco 8.00 2017
46 Lesotho 7.70 2017
47 Egypt 7.40 2017
48 Gabon 7.20 2017
49 Tunisia 4.60 2017
50 Benin 3.60 2017
51 Mauritius 1.00 2017
52 Botswana 0.70 2017
53 South Africa 0.20 2017

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Development Relevance: The economic health of a country is measured not only in macroeconomic terms but also by other factors that shape daily economic activity such as laws, regulations, and institutional arrangements. The data measure business regulation, gauge regulatory outcomes, and measure the extent of legal protection of property, the flexibility of employment regulation, and the tax burden on businesses. The fundamental premise of this data is that economic activity requires good rules and regulations that are efficient, accessible to all who need to use them, and simple to implement. Thus sometimes there is more emphasis on more regulation, such as stricter disclosure requirements in related-party transactions, and other times emphasis is on for simplified regulations, such as a one-stop shop for completing business startup formalities. Entrepreneurs may not be aware of all required procedures or may avoid legally required procedures altogether. But where regulation is particularly onerous, levels of informality are higher, which comes at a cost: firms in the informal sector usually grow more slowly, have less access to credit, and employ fewer workers - and those workers remain outside the protections of labor law. The indicator can help policymakers understand the business environment in a country and - along with information from other sources such as the World Bank's Enterprise Surveys - provide insights into potential areas of reform.

Limitations and Exceptions: The Doing Business methodology has limitations that should be considered when interpreting the data. First, the data collected refer to businesses in the economy's largest city and may not represent regulations in other locations of the economy. To address this limitation, subnational indicators are being collected for selected economies. These subnational studies point to significant differences in the speed of reform and the ease of doing business across cities in the same economy. Second, the data often focus on a specific business form - generally a limited liability company of a specified size - and may not represent regulation for other types of businesses such as sole proprietorships. Third, transactions described in a standardized business case refer to a specific set of issues and may not represent the full set of issues a business encounters. Fourth, the time measures involve an element of judgment by the expert respondents. When sources indicate different estimates, the Doing Business time indicators represent the median values of several responses given under the assumptions of the standardized case. Fifth, the methodology assumes that a business has full information on what is required and does not waste time when completing procedures.

Statistical Concept and Methodology: Data are collected by the World Bank with a standardized survey that uses a simple business case to ensure comparability across economies and over time - with assumptions about the legal form of the business, its size, its location, and nature of its operation. Surveys are administered through more than 9,000 local experts, including lawyers, business consultants, accountants, freight forwarders, government officials, and other professionals who routinely administer or advise on legal and regulatory requirements. Entrepreneurs around the world face a range of challenges. One of them is inefficient regulation. The indicator measures the procedures, time, cost and paid-in minimum capital required for a small or medium-size limited liability company to start up and formally operate. The Doing Business project of the World Bank encompasses two types of data: data from readings of laws and regulations and data on time and motion indicators that measure efficiency in achieving a regulatory goal. Within the time and motion indicators cost estimates are recorded from official fee schedules where applicable. The data from surveys are subjected to numerous tests for robustness, which lead to revision or expansion of the information collected.

Aggregation method: Unweighted average

Periodicity: Annual

General Comments: Data are presented for the survey year instead of publication year.