According to the findings released at the EAC’s headquarters in Arusha, Rwanda still emerged the first among the five partner states in the 10 indicators used to rank 183 countries globally in business facilitation.
Globally, the EAC state ranking statistics indicate that Rwanda is the best with the 58 position, followed by Kenya which is ranked 98 while Uganda 122, Tanzania is 128 and Burundi a humiliating 181 position.
Compared with its partner states, Tanzania did poorly in dealing with construction permits and registering property, where it is ranked 179 and 151, respectively.
Exclusively speaking to igihe.com, Rwanda Development Board’s Chief Operating Officer, Clare Akamanzi noted: “We ranked with that position because of our systematic and convenient ways of easing ‘the doing business’ here.
“For example in quickening to start business through reduced bureaucracy, quick to transfer land to the ownership, and easy to access information and securing credits has helped us to be the best in the region and 4th position in Africa.”
Kenya, East Africa’s strongest economy, placed second in the Doing Business in East African Community 2011 report while Tanzania placed fourth after Uganda, casting the spotlight on Dar es Salaam’s pitch that the country was a favored destination for investors and a reliable partner in global trade.
Burundi placed last in the bloc, with persistent strife blamed for the poor showing. The EAC has Tanzania, Kenya, Rwanda, Burundi and Uganda as its member states while newly independent South Sudan has applied to join the bloc.
The report also shows that, the regional bloc had an average global ranking of 117, one point short of the previous year’s average of 116.
The study took a detailed look at business regulations and environment such as the ease of setting up a new business, securing credit and permits, paying taxes and the enforcement of contracts.
According to the Doing Business Report 2011, East African countries implemented eight reforms; three carried out in Rwanda, two each in Kenya and Uganda and one in Burundi. No reform on trade regulation was carried out in Tanzania during the period.
The report has put in the spotlight Tanzania’s competitiveness as an investment destination and trading partner, with some business stakeholders and experts blaming the low ranking on red tape.
They warned that unless the situation was addressed as a matter of urgency, the country would continue to lag behind other EAC member states.
A prominent businessman in Arusha, Walter Maeda, cited the most cumbersome procedures as registering land titles and securing bank loans, saying these were among factors affecting Tanzania’s competitiveness as an investment destination.
He added that Kenyan business people were much better off than their Tanzanian counterparts because it was much easier for them to access credit.
EAC deputy secretary general, Planning and Infrastructure Enos Bukuku during the launch of the report at an Arusha hotel that concerted efforts should be made to make the region an investment haven.
Bukuku who until recently was the Bank of Tanzania Deputy Governor noted, “We can do this by further streamlining regulations affecting enterprise and by ensuring that the business environment is reassuring to investors.”
He added, “We are serious about our role in the creation of an environment which is attractive to increasing private sector activity within and across our borders.”
The East African Business Council (EABC) Executive Secretary, Ms Agatha Nderitu said, “Although the EAC Common Market has opened several opportunities for businesses in the region, it still requires an investment climate that is properly suited to catalyzing additional trade and investment.”
Tanzania was fourth regionally in the getting credit category after it was placed 89th globally, with Burundi being ranked fifth in East Africa after taking 168th spot globally.
The study also shows that in protecting investors, Rwanda still emerged the best with 28 points, Tanzania tied with Kenya on 93rd spot globally.
Tanzania is ranked 120th on the paying tax indicator ahead of Kenya (162) and Burundi (141). Rwanda and Uganda are placed 43rd and 62nd, respectively.
The report said despite the progress made in the EAC integration, especially since the Common Market Protocol came into effect in July 2010, critical obstacles to entrepreneurship in the bloc still remained and said that reforming business regulations would accelerate their growth
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