World Bank discontinues Ease of Doing Business report after review

The World Bank recently made headlines when it decided to suspend its Doing Business report after uncovering irregularities. This report had been instrumental in helping African countries attract foreign direct investment and drive reform. During a recent interview on CNBC Africa, Gloria Nelund, CEO of Trilink, shared insights on the potential impact of the report's suspension on investors and the need for a replacement. Nelund highlighted the importance of having standards that push governments to improve the business environment and the challenges of maintaining data quality in such rankings. Nelund emphasized that while the suspension of the Doing Business report may affect some investors, many have alternative sources of information for assessing investment opportunities. She cited Trilink's proprietary model, which evaluates countries based on 30 different factors categorized under growth, stability, and access. These criteria include economic fundamentals, legal systems, and ease of capital movement. Nelund explained that Trilink's model generates a heat map to identify attractive investment destinations and considers both financial and impact perspectives. Discussing the void left by the Doing Business report, Nelund acknowledged its role in prompting governments, particularly in Africa, to enhance their regulatory frameworks. She expressed hope for a replacement standard that could serve as a benchmark for countries striving to create investor-friendly environments. Nelund suggested that international organizations like the United Nations could spearhead the development of a new index, leveraging their experience with initiatives such as the sustainable development goals. When asked about potential implications for the World Bank's future findings, Nelund predicted that the institution would face increased scrutiny. She believed that this scrutiny could lead to a reevaluation of the organization's methodologies and rankings, ultimately driving improvements in data quality and transparency. Nelund expressed confidence in the World Bank's overall mission and the value it brings through its data and resources, emphasizing the importance of accountability and oversight in preserving the institution's credibility. In conclusion, the suspension of the Doing Business report has raised questions about the reliability of such rankings and the need for transparent and accurate assessment tools in the realm of foreign direct investment. As investors and policymakers navigate this shifting landscape, the call for a new standard that promotes accountability and fosters investment-friendly environments becomes increasingly urgent.