S.Africa’s legislative regime good for doing business - CNBC Africa

S.Africa’s legislative regime good for doing business

Southern Africa

by Trust Matsilele 0

The World Bank’s Doing Business 2015’s Going Beyond Efficiency report also reported that sub-Saharan Africa accounted for the largest number of such reforms.

According to the report, entrepreneurs in 123 economies saw improvements in their local regulatory framework last year. 

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The report measures 189 economies worldwide.

“Between June 2013 and June 2014 documented 230 business reforms, with 145 reforms aimed at reducing the complexity and cost of complying with business regulation, and 85 reforms aimed at strengthening legal institutions,” said the report.

According to the report, South Africa made access to credit information more difficult by introducing regulations requiring credit bureaus to remove negative credit information from their databases.

This includes adverse information on consumer behaviour or enforcement action accumulated on a consumer’s record before April 1, 2014. 

“South Africa made enforcing contracts easier by amending the monetary jurisdiction of its lower courts and introducing voluntary mediation.”

The report added that South Africa made paying taxes easier for companies by replacing the secondary tax on companies with a dividend tax borne by shareholders. 

In 2013 South Africa reduced the time and documents required to export and import through its ongoing customs modernisation program.

(READ MORE: World Bank ‘wrong’ on Ethiopia’s ranking on ease of doing business - Desalegn)

“In 2012 South Africa made transferring property less costly and more efficient by reducing the transfer duty and introducing electronic filing,” added the report.

The report also said South Africa in the past introduced a new reorganisation process to facilitate the rehabilitation of financially distressed companies.