#

Ease of Doing Business in

Uganda

Uganda Download Profile (1776.3KB, pdf)
Region Sub-Saharan Africa
Income Category Low income
Population 39,032,383
GNI Per Capita (US$) 670
City covered Kampala

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 115 116 up
1
57.77 57.10 down
0.67
Starting a Business 165 162 down
3
71.30 69.26 up
2.04
Dealing with Construction Permits 151 153 up
2
57.19 56.42 up
0.77
Getting Electricity 161 168 up
7
44.78 42.61 up
2.17
Registering Property 116 118 up
2
55.81 55.38 up
0.43
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 106 101 down
5
50.00 50.00
-
Paying Taxes 75 76 up
1
74.71 74.18 up
0.53
Trading across Borders 136 141 up
5
58.90 57.78 up
1.12
Enforcing Contracts 64 63 down
1
60.60 60.60
-
Resolving Insolvency 111 104 down
7
39.40 39.80 down
0.40

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

111

DB 2016 Rank:

104

Change in Rank:

down7

DB 2017 DTF (% points):

39.40

DB 2016 DTF (% points):

39.80

Change in DTF (% points):

down0.40

Indicator Uganda Sub-Saharan Africa OECD high income
Recovery rate (cents on the dollar) info_outline 38.4 20.1 73.0
Time (years) info_outline 2.2 3.0 1.7
Cost (% of estate) info_outline 29.5 23.1 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 .. ..
Strength of insolvency framework index (0-16) info_outline 6 6.2 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 38.4
    Proceeding A receiver may be appointed under the terms of the security document and the Insolvency Act, 2011. The receiver will take custody of the property under receivership and carry out other obligations specified in the Act. After preparing the abstracts prescribed in the Insolvency Act, the receiver may find a buyer that will continue operating the business. receivership
    Outcome Assuming that there will be a receiver appointed under the debt instrument which will seek for potential buyers of the company, the sale will take place after approximately 2 years and the business will continue operating as a going concern. going concern
    Time (in years) Receivership commences when a receiver accepts the appointment. The receiver is then required to immediately notify the debtor of the appointment and also notify the public notice and the Registrar of Companies of the appointment no later than 14 days of commencement of the receivership. Following the notification, the receiver then commences the exercise of his powers, including taking custody of the property under receivership, registration in his names all land and other assets under receivership. This takes approximately 30 working days. The receiver is required, within 40 working days after his appointment, to prepare a preliminary report on the state of affairs of the property in receivership. The preliminary report must be sent to the debtor, all persons in whose interests the receiver is appointed and the official receiver within 5 working days after its preparation. The receiver will then manage the property, while trying to find a suitable buyer and then arranging the sale of the assets. Following the sale of the property, the receiver is required to deal with the proceeds as provided for under the Insolvency Act. 2.2
    Cost (% of estate) For a receivership procedure, the cost is approximately 30% of the value of the estate to resolve the case. Attorneys' fees (10%) and the receiver’s fees (10%) will represent the major components of the cost associated to this procedure. The rest would be fees of accountants, auctioneer’s fees and court expenses. 29.5
    Answer Score
    Strength of insolvency framework index (0-16) 6.0
    Commencement of proceedings index (0-3) 2.5
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor may file for liquidation only 0.5
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 3.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? No 0.0
    Does the insolvency framework assign priority to post-commencement credit? (c) No priority is assigned to post-commencement creditors 0.0
    Reorganization proceedings index (0-3) 0.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 0.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? No 0.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.