Rwanda tops World Bank’s table of reformers

16th September 2009

Simon Harding

Rwanda is this year’s top reformer, according to an annual World Bank’s report, the first time a sub-Saharan African nation has topped the progress table. Doing Business 2010: Reforming through Difficult Times reports that a record 131 economies around the world implemented reforms in the period June 2008 to May 2009, which make it simpler and quicker for entrepreneurs to set up new companies and make the everyday tasks involved in running a small business easier.

Reforms may help countries recovers from the current economic slowdown, explains Penelope Brook, Acting Vice President for Financial and Private Sector Development for the World Bank Group: ‘The quality of business regulation helps determine how easy it is to reorganize troubled firms to help them survive difficult times, to rebuild when demand rebounds, and to get new businesses started.’

Singapore topped the overall rankings for the fourth year running with New Zealand in second place. The Kyrgyz Republic, Macedonia, Belarus and the UAE all made it into the top ten most improved nations, but none could match Rwanda’s performance, which saw the small African nation implemented 7 reforms and climb 76 places to 67th overall. Rwanda’s reforms include measures to reduce bureaucratic delays when starting a business and selling property, making employment laws more flexible and simplifying the tax system. According to the Bank, it now takes a Rwandan entrepreneur just two days to open a business, in stark contrast to the 141 day wait facing small businesses in Venezuela, one of the reports worst performers. Top spot will also boost Rwanda’s appeal as a business-friendly outlet for the foreign investment needed to expand private industry and ease reliance on global commodity prices and the public sector.

‘The tables are turning’, said Sylvia Sof, director of the report, ‘Now you see more and more reforms happening in lower and middle income countries.’
However, the report does not take into account many factors which play a big role in determining the success of a new venture. Despite its recent improvements, Rwanda’s poor infrastructure, relatively unskilled labour force and high crime rates will continue to hinder small and medium enterprises.

Also see: ‘Doing Business 2010: Reforming through Difficult Times’, World Bank, 9/9/09. Available at: http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22301788~pagePK:64257043~piPK:437376~theSitePK:4607,00.html
‘Rwanda jumps rank in global business survey’, Alex Kennedy, Forbes, 9/9/09. Available at: http://www.forbes.com/feeds/ap/2009/09/09/business-as-world-bank-business-rankings_6861624.html