The Organization for the Harmonization of Business Law in Africa (OHADA) is a pan-African organization which aims to establish a uniform legal framework governing business activities in the economies covered by this report: Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Comoros, Republic of Congo, Côte d'Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali, Niger, Senegal, and Togo. The report focuses on national and local regulations that affect 10 stages in the life of a small to medium-size domestic firm: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
- This year, the first revision of the body of commercial laws in the region simplified business entry in 8 member states and strengthened secured transaction laws in all 16 member states.
- In the past 6 years, all OHADA Member States made it easier to do business. Across the region, the average cost to start a business decreased by 67% of the average per capita income. The average time required to register property also decreased by 28%.
- OHADA is a region that imposes heavy and costly regulations for local entrepreneurs: the average ranking of the OHADA member states is 166 out of the 183 economies measured in the global Doing Business 2012 report.
- Sharing good practices could bring OHADA Member States closer to global top performers.
- No single economy outperforms the others across the board. The wide variation in business regulation across the region points to ample room for improvement.
- In certain categories measured, the region’s economies are comparable to the world’s best performers. By setting up a one stop shop, starting a business in Senegal takes only 5 days, same as in Canada and faster than in France. After 4 years of successive reforms, obtaining construction permits in Burkina Faso takes only 98 days, 3 month faster than the European Union average.
Doing Business in OHADA Member States 2012 was prepared as part of the OHADA Business Law Reform Program of the World Bank Group. The program includes support to the OHADA Member States and the OHADA Permanent Secretariat in reforming and implementing the common set of laws.
Note: This graphic captures the absolute improvement that countries have made over time toward the most efficient practice or highest score achieved by any economy (the "frontier"). It includes data on nine Doing Business indicator sets (excluding the employing workers and getting electricity indicators) since 2005. Among 183 economies worldwide, Georgia closed the most gap to the frontier of best regulatory practices for local entrepreneurs (27.8 percentage points), followed by Rwanda, Belarus and Burkina Faso.
Source: Doing Business database.