Uganda backslides in Doing Business ranking

Hike in trade licence fees and tedious property transfer blamed

Kampala, Uganda | ISAAC KHISA | Uganda has slid back in the World Bank’s Ease of Doing Business ranking dropping seven places to 122 out of 190 economies.

It is the sixth time in seven years that the East African nation is recording a drop in the World Bank index which rates countries on how easy a business can be set up and how it is protected once it is established.

The drop in performance, according to the latest report released on Oct.31 in Washington D.C, is attributed to the increase in trade licence fees and the added time to process business licenses leading to a slow-down in business start-ups.

“Uganda also made transferring property more difficult by introducing a requirement for property purchasers to obtain an income tax certificate before registration, resulting in delays at the Uganda Revenue Authority and the Ministry of Finance,” the report noted.

However, the government made it easier by digitising records at the title registry, increasing efficiency at the assessor’s office and making it possible for more banks to accept the stamp duty payment.

The government also made trading across borders easier by extending the ASYCUDA++ electronic data interchange system to four additional customs stations, introducing a system linking banks to customs (for payment of duties) and enhancing cooperation at the Kenya–Uganda border crossing at Malaba through joint inspections.

This is in addition to the reduced time required for trading across borders through expanded operating hours at the port of Mombasa and improvements in customs processes and in border cooperation.

The 2018 release is the 15th edition in a series of the bank’s annual reports that examine the regulations and conditions that enhance business conduciveness around the world.

The World Bank Ease of Doing Business survey focuses on several aspects that facilitate business including; the ease of starting a business, obtaining construction permits, access to electricity, registering property, access to credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.

UIA reaction

Commenting on the new ranking, Jolly Kaguhangire, the executive director of the Uganda Investment Authority said the country’s poor performance in the new ranking is attributed to the fact that the survey did not put into consideration the One-Stop Centre that has eased business licensing.

“My honest observation in this report is that the integration of government services onto one online portal— the One Stop Centre— is not mentioned and included in the procedures of starting a business,” she said, “ I think ignoring this important aspect has resulted into Uganda’s poor performance.”

She, however, said the Authority plans to carry publicity in the next two weeks to popularize initiatives currently in place aimed at easing doing business in the country.