Government, WB officials to meet over investor report index

The government is this week expected to meet with top officials of the World Bank group to discuss the latest Doing Business Report (DBR) and the change in methodology that saw the country’s global rankings on various indicators taper. According to Rwanda’s Minister for Finance and Economic Planning, Claver Gatete, the discussions with WB officials will centre on the global survey’s new methodology in a bid to understand how it works and inform new government reforms to spur private investment. “They will be coming here this week and we shall discuss item by item of the new rankings on each indicator in order for us to properly understand the new methodology, which introduced new elements that weren’t previously there,” Gatete said. Rwanda’s overall global DBR ranking tapered by seven positions, from 55th previously to 62nd but the country retained its position as the second easiest place to do business in Africa and the best in East Africa, ahead of the region’s larger economies of Kenya, Tanzania and Uganda. “In as much as we are still ranked number two in Africa behind Mauritius, we are saying let’s discuss this new methodology, go through item by item and get to really understand it,” Gatete added. East Africa’s largest economy, Kenya, is ranked 108 globally, Uganda (122), Tanzania (139) while Burundi is placed in 152nd position. “What’s clear is that we (countries) all want to improve our doing business outlook but we also want, as developing countries to give our input in what should be considered,” said Gatete. The World Bank Group officials are expected to include those who are directly responsible for the doing business survey, potentially led by Rita Ramalho, the manager of the Doing Business project. “We expect the meeting to take place before the end of this week,” said Rogers Kayihura, the head of communications at the World Bank country office. Rwanda is not the only country they are expected to visit as the new methodology affected all countries which have since been demanding for explanations on how the new rules work. Countries take the report seriously because it is used as a major reference point by foreign investors seeking to do business in Africa and those ranked favourably have higher chances of attracting foreign direct investment. However, most top ranked countries under the previous methodology, including Rwanda, lost ground on most indicators after the new methodology was introduced, abruptly, and countries have since been working toward realigning their reform efforts to the new rules. For instance, in the 2012 doing business report, Rwanda was ranked 8th, globally, as the easiest place to start a business; however, under the new methodology, the country is now ranked as 111th in the world under the latest index. Top in Africa The 2016 doing business report is the 13th edition of the survey which is also World Bank’s flag publication; it measures how economies around the world are responding to investor needs by removing burdensome regulations that tend to discourage businesses to start and prosper. Released late last month under the theme, ‘measuring regulatory quality and efficiency,’ the findings of the latest DBR captured the doing business environment in 189 economies around the world. Although the survey’s new methodology mainly altered Rwanda’s previously impressive global rankings on all ten indicators measured, the country is still among the best ranked economies on the continent. For instance, Rwanda is the easiest place in Africa for investors to register property and getting credit; the country is also ranked among the top five friendliest places to pay taxes as well as dealing with construction permits. But, even under an unfamiliar methodology, Rwanda’s economy stands strongly on the same footing with major economies regarding certain indicators such as getting credit where the country is ranked in joint second with the US and Colombia, behind New Zealand. Moreover, the new ranking on ease to getting credit is an improvement by two steps for Rwanda, which was placed in fourth position globally in last year’s Doing Business Report publication. In general, Rwanda improved in four indicators, declined in five and unchanged on one; the country’s worst decline was registered on trading across borders where it dropped by 79 points, from 77th last year to 156th this year. The report attributed this drop to claims that, ‘Rwanda increased the time and cost for documentary and border compliance for importing by making pre-shipment inspection mandatory for all imported products.”

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Government, WB officials to meet over investor report index