-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
1/44
Critical Success Factors for undertakingDoing Business reforms
Cemile Hacibeyoglu
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
2/44
Doing Business identifies opportunities for reform
Annual publication measuringbusiness regulations in 10 keyareas
Focus on regulations relevant to the
life cycle of a small to medium-sized domestic business.
Covers 183 economies worldwide
Updated each year, tracks and
measures reforms
Identifies best practices globally
2
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
3/44
Doing BusinessMeasuring 10 areas of businessregulation
3
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
4/44
Global top 10 Sub-Saharan Africatop 10
1. Singapore 1. Mauritius
2. Hong Kong SAR,China
2. South Africa
3. New Zealand 3. Rwanda
4. United States 4. Botswana5. Denmark 5. Ghana
6. Norway 6. Namibia
7. United Kingdom 7. Zambia
8. Korea, Rep. 8. Seychelles9. Iceland 9. Kenya
10. Ireland 10. Ethiopia
124. Swaziland 13. Swaziland
Top 10 economies for the ease of doing businessin 2010/11
44
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
5/44
Change in
ranking DB11
to DB12
Starting a
Business
Dealing with
construction
permits
Getting
electricity
Registering
property
Getting
credit
Protecting
investors
Paying
taxes
Trading
across
borders
Enforcing
contracts
Resolving
insolvency
Morocco 11594 (-21)
Moldova 9981 (-18)
Macedonia, FYR 3422 (-12)
So Tom and
Principe
174163
(-11)
Latvia 3121 (-10)
Cape Verde129119
(-10)
Sierra Leone 150141 (-9)
Burundi 177169 (-8)
Solomon islands 8174 (-7)
Korea, Rep. 158 (-7)
Armenia 6155 (-6)
Colombia 4742 (-5)
4 of the economies improving the most in the ease ofdoing business in 2010/11 are from Sub-Saharan Africa
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
6/44
30
778793
95
117
137
114112
151
170
Eastern Europe & Central
OECD high income
Sub-Saharan Africa
Latin America & Caribbean
East Asia & Pacific
South Asia
Middle East & North Africa
Economic Community of CentralAfrican States:
Angola, Burundi, Cameroon, Central African Republic,Chad, the Democratic Republic of Congo, the Republicof Congo, Equatorial Guinea, Gabon, So Tom and
Prncipe
East African Community:Burundi, Kenya, Rwanda, Tanzania, Uganda
Economic community of WestAfrican States:
Benin, Burkina Faso, Cape Verde, Cte dIvoire,
The Gambia, Ghana, Guinea, Guinea-Bissau,Liberia, Mali, Niger, Nigeria, Senegal, Sierra
Leone, Togo
Southern African DevelopmentCommunity:
Angola, Botswana, the Democratic Republic of Congo,Lesotho, Madagascar, Malawi, Mauritius, Mozambique,
Namibia, Seychelles, South Africa, Swaziland, Tanzania,Zambia, Zimbabwe
East and Southern African economies rank on average higherthan the regional average on the ease of doing business
6
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
7/44
0
20
40
60
80
100
120
140
160
180
Seychelles
Rwanda
Madagascar
Swaziland
SierraLeone
Malawi
SouthAfrica
Kenya
Mauritania
Namibia
Zambia
Eritrea
CapeVerde
Equatorial
Nigeria
Botswana
Gambia,the
Ethiopia
Senegal
Liberia
Burundi
Comoros
Tanzania
Mozambique
Cameroon
Sudan
SoTom
Ghana
Cted'Ivoire
Uganda
Lesotho
Togo
Angola
Chad
Congo,Rep.
Burkina
Guinea-
Zimbabwe
Mauritius
Central
Niger
Gabon
Congo,
Guinea
Mali
Benin
AverageR
ankAcrossDBTopics
Most Sub-Saharan African countries have a high degree ofvariability among the different areas of regulation
South Africa BOTTOM 3 rankings:
Enforcing contracts:81Getting electricity:124Trading across borders:144
The average rank in 10 areas ofbusiness regulation in South Africais 63, but in fact performance variessignificantly across indicators
South Africa TOP 3 rankings
Getting credit:1Protecting investors:10Dealing with construction permits:31
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
8/44
Swazilands performance on the ease of Doing Business
Swazilands overall ranking in DB12: 124
3554
63
109124 127
133 139
171 178
Ease of Doing Business ranking (1-183)
8
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
9/44
Swazilands performance varies across topics
Indicator Regions best performer Swaziland
Dealing with constructionpermits
South Africa 47
Getting credit South Africa 48
Paying taxes Mauritius 60
Resolving insolvency Botswana 69
Protecting investors South Africa 122
Registering property Ghana 128
Trading across borders Mauritius 148
Getting electricity Mauritius 158
Starting a business Rwanda 161
Enforcing contracts Tanzania 171
9
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
10/44
DB 2012 Registering property
Swaziland made transferring property quicker by streamlining theprocess at the land registry.
DB 2011 Protecting investors
Swaziland strengthened investor protections by requiring greater
corporate disclosure, higher standards of accountability for company
directors and greater access to corporate information for minority
investors.
Trading across borders
Swaziland reduced the time to import by implementing an electronic data
interchange system for customs at its border posts.
Resolving insolvency
In April 2010, the new companies act of Swaziland entered into force. It
establishes a more streamlined winding up procedure. The effect of the
new law has not been felt in practice yet.
Swazilands recent reforms reflected in Doing Business
reports
10
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
11/44
36 out of 46 governments in the region improved their economys
regulatory environment for domestic businesses in 2010/11
A record number of economies in Sub-Saharan Africareformed business regulations in 2010/11
11
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
12/44
0
10
20
30
40
50
60
70
8090
100
15
77 7
4 5 6
1 6 17 1
Number of reforms DB2005-DB2011
Number of reforms DB2012
Since Doing Business 2005Sub-Saharan African countrieshave implemented 373 reforms 76 in DB 2012
12
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
13/44
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2005 2006 2007 2008 2009 2010 2011
Rwanda
BurkinaFaso
Mali
Madagascar
Ghana
SouthAfrica
NarrowingtheDistancetotheFrontie
rfrom2
005to
2011(percentagepoints
)
South Africa improves steadily and remains the closest to the frontier, butnumerous African economies are catching up through sustained reforms
DBreforms
25
20
15
13
12
9
South Africa and the 5 economies in Sub-Saharan Africa most closing the gap tothe frontier
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
14/44
In 2010/11, South Africa made improvements in 3areas of business regulations for the first time in DB
Starting a business The Companies Act 2008 (Act
No 71 of 2008) came into forceon May 01, 2011. Therequirement to reserve a companyname was removed.
The new Act introduces fewerstatutory forms to incorporate acompany.
The costs of incorporation havebeen reduced to a flat fee of onlyR175 and there is no longer theneed to obtain a Certificate tocommence a business.
Registeringproperty On April 4, 2011, South Africa
implemented a new law onTransfer duty.
The e-filing system for submissionof Transfer Duty declarations andpayments is now operational andit is mandatory to file for TransferDuty electronically.
A new sliding scale wasintroduced for the Transfer Dutyrate. Previously, a company
selling a property was taxed afixed rate of 8% of the declaredproperty value.
Resolvinginsolvency South Africa amended its
Companies Act in May 2011.
The amendments introduced anew reorganization regime(business rescue) to facilitate therehabilitation of a company that isfinancially distressed and haveentrusted this procedure to a newcategory of professionals - thebusiness rescue specialists.
Reorganization proceedings may
be initiated by the management ofthe company, creditors andemployees.
Impact:-1 procedure,-3 days, overall costcut from 6% to 0.3%of GNI per capita
Impact:-1 day, cost oftransfer duty taxdropped by 8% to4.6% of property price
14
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
15/44
Through the years, Rwanda has adopted a broadapproach to make regulations more business-friendly
Starting a business: Reductionof the business registration feesfrom FRW 25,000 to FRW 15,000.
Paying taxes: Reduction of the
number of required VAT filings frommonthly to quarterly.
Getting credit: the private creditbureau started to collect anddistribute information from utility
companies and also started todistribute more than 2 years ofhistorical information, improving thecredit information system
REFORMS implemented in DB 12:
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
16/44
16
More than 80 countries have requested technical assistance to improve thebusiness environment in the areas measured by Doing Business
The Doing Business Report is a catalyst forregulatory reforms
?
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
17/44
Why investment climate reforms matter?Business entry: Key findings from the literature
One stop shop in Mexico
One stop shop in Colombia
Reduction of entry procedures in India
5%increase in registered firms, 2.8% employment
5.2% increase in firms registered
6% increase in firms registered
Cross-country studies confirm positive impact of simplification.
Quasi-experimental evaluations: positive impact of entry
simplification.
Reduction of entry cost from24.5% to 0.7% of income percapita
10-11% increase in firms registered
Reforms in several areas for bigger impact. Entry reforms in Indian states with
more flexible labor regulations.
17.8% increase in output gains,larger than in states with lessflexible regulations
17
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
18/44
18
Trade: Key findings from the literature
Reduced time to export associated with greater trade and
productivity.
Reduction of time (throughsimplification of
documents /processes &automation, and areduction of fees by atleast 10%)
Increased Exports
Over 6% export increase in sub-Saharan Africa (1.8% in OECDcountries)
1 additional day in transit time isequivalent to a 70km increase indistance between trading partners
Increased Productivity
Reducing customs clearance time by
1 day generated over 7% increase inproductivity (value added per worker)for consumer goods production(China)
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
19/44
19
Insolvency: Key findings from the literature
Bankruptcy reforms associated with increased repayment rate and
reduced cost of debtImprovedinsolvencyregimes
Increased the probability of timelyrepayments by 28%
Reduced cost of debt
Increased the aggregate level of creditby 39% (Brazil)
New mechanisms fordebt restructuringand reorganization
Reduce by 8.4% the failure rates ofsmall and medium enterprises
Reduce duration of reorganizationsfrom 34 to 12 months
Bankruptcy reforms associated with increased household creditReforms to individualbankruptcy laws in highincome countries
Increased household credit byas much as 12%
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
20/44
Strategy for successful reform
Long-term vision and clear objectives
Leadership at the highest political level
Appropriate structure (steering committee,technical taskforce)
Clear definition of responsibilities among
implementing agencies
Broad but realistic program ofimprovement of the business environment
Coherent reform efforts, year after year:start small and build on demonstrable
effects Follow-up, communication strategy and
training
Key aspects of success in
the reform process
20
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
21/4421
Good practices to reform
the Starting a businessProcess
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
22/44
Why does formal business registration matter?
- Legal entities can outlivetheir founders.
- Formally registeredcompanies have access to
services and institutionsfrom courts to banks aswell as to new markets.
- Employees can also
benefit from protectionsprovided by the law.
Simpler start-up procedures areassociated with a greater numberof legally registered companies
Simpler business registration associatedwith greater employment opportunitiesin the formal sector (e.g. Masatliogluand Rigolini, 2008)
Lower costs for business registration encourageentrepreneurship and enhance firm productivity(e.g. Klapper, Laeven and Rajan, 2006; Klapperand Love 2011; Barseghyan 2008)
For the companyFor the economy
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
23/4423
The Case Study Assumptions
Company type: SME in countrys largest
business city
Legal form: Limited Liability Company
100% domestically owned
Has a start- up capital of 10 times income percapita
Does not qualify for investment incentives
Has at least 10 and up to 50 workers
Performs general industrial or commercialactivities.
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
24/44
What Starting a Businessmeasures
What are the time, cost, paid-in minimum capital and number ofprocedures to get a local limited liability company up and running?
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
25/44
25
Number of reforms easing start-up since DB2005 (byregion)
0 20 40 60 80 100
Sub-Saharan Africa
Eastern Europe & Central
Asia
OECD high income
Latin America & Caribbean
Middle East & North Africa
East Asia & Pacific
South Asia
DB2005
DB2006
DB2007
DB2008
DB2009
DB2010
DB2011
DB2012
Sub-Saharan Africa, Eastern Europe & Central Asia mostactive in start-up reforms
80
72
55
51
41
38
12
Change in procedures time cost and paid in minimum
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
26/44
Change in procedures, time, cost, and paid- in minimumcapital to start-up by region between DB2006 and DB2012
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
27/44
Starting a business hasbecome easier across allregions of the world
Incorporation fees tend
to be lower in economieswhere fee schedules areeasily accessible
Globally, the average
time to start a business fellfrom 50 days to 31, andthe average cost from 89%of income per capita to36%.
Over the past 8 years Doing Businessrecorded 349 business registrationreforms in 146 economies
In 2010/11, 53 economies made it
easier to start a business, withstreamlining registration formalities themost common feature
Entrepreneurs in Sub-Saharan Africa
continue to face the highest cost andhighest paid-in minimum capital
What are the trends since DB2006
Where is starting a business easy?
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
28/44
Where is starting a business easy?What do many have in common?
New Zealand
Australia
Canada
Singapore
Hong Kong SAR, China
Macedonia FYR
Georgia
Rwanda
Belarus
Armenia
Global good practices
Standardized forms
No courts involved
Fixed registration fee
No publication in legal journal required
3 procedures, 5 days, start-up fees
2.2% GNI pc ( on average)
Top 10 Performers
28
28
Company start up is lengthy and cumbersome in
http://www.google.com/imgres?imgurl=https://www.cia.gov/library/publications/the-world-factbook/graphics/flags/large/am-lgflag.gif&imgrefurl=https://www.cia.gov/library/publications/the-world-factbook/geos/am.html&usg=__PYOVVA_NTPQm7HgEClM2CNEkCMU=&h=302&w=604&sz=2&hl=en&start=2&zoom=1&tbnid=MoMDXaIl6yV53M:&tbnh=68&tbnw=135&ei=R2JyTrW_DMr40gG8xLT8CQ&prev=/search?q=armenia+flag&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1http://upload.wikimedia.org/wikipedia/commons/f/f8/Flag_of_Macedonia.svghttp://en.wikipedia.org/wiki/File:Flag_of_Rwanda.svghttp://www.google.com/imgres?imgurl=http://www.worldmapsinfo.com/flags/1205740039fBelarus_flag(1).gif&imgrefurl=http://www.worldmapsinfo.com/flags/flag-of-belarus.html&h=240&w=360&sz=13&tbnid=PDZwU6r2YTGGoM:&tbnh=81&tbnw=121&prev=/images?q=Belarus+flag&hl=en&usg=__Eglav87PAQtvnb58MFE_iLwaTKU=&ei=Mml8SpXgNNG3tweeou3vAQ&sa=X&oi=image_result&resnum=3&ct=image -
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
29/44
29
Company start-up is lengthy and cumbersome inSwaziland
It takes 12 procedures, 56 days, costs 29.2% of income per capita andrequires paid-in minimum capital of 0.5% of income per capita to start
a business in Swaziland.
Requestingtrading
license takes30 days
Registrationwith thecompanyregistrar
takes 21 days
How does business start up process in Swaziland
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
30/44
How does business start-up process in Swazilandcompare to regional and global best practices?
Time (calendar days) Procedures (number)
Cost to open a company in Swaziland is 29.2% of income per capita, below the regionalaverage of 81.2%, but above the OECD average of 4.7%.
12
5
8
12
Global bestperformer:
Canada
Regionalbest
performer:
Rwanda
OECDaverage
Regionalaverage:
Sub-Saharan
Africa
Swaziland
1 3
13
37
56
Global bestperformer:
New Zealand
Regionalbest
performer:
Rwanda
OECDaverage
Regionalaverage :
Sub-Saharan
Africa
Swaziland
30
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
31/44
Starting a business: successful reform examples
Reducing or eliminating the minimum capital requirement (82 economies including
Kenya, Madagascar, Portugal, Rwanda, United Arab Emirates, United Kingdom); Putting reservation of company names and registration procedures online (110
countries, including over 40, which offer full electronic registration (Mauritius, NewZealand);
Introducing single company/taxpayer identification number (Ghana, India, Mali,Singapore);
Unifying all company registration procedures at a virtual or physical single accesspoint to include registration for income tax, VAT and personal income tax by linkingvarious databases and creating a single form that satisfies requirements of allagencies involved in company registration ( 83 countries worldwide have one-stopshops including Liberia, Malaysia, Saudi Arabia, Taiwan, China; Thailand);
Making access to forms and fee schedules easy (cost to start a business averages18% of income per capita in economies where schedules are accessible, and 66%in economies where they are not).
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
32/44
32
Best practices to reform the
Trading across BordersProcess
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
33/44
33
Why does facilitating trading across borders matter?
Competitiveness: in a globalised world, making the ability to compete in
the global markets, and to become a part of global supply chains isimportant
Grounded in economics literature:
More effective than tariff reduction - 10% reduction in exporting costs
increases exports by 4.7% (study on sub-Saharan Africa)
Good for SMEscutting the days to clear exports by half couldenable its share of exports in total sales to increase from 1.6% to4.5% (study on APEC)
Outdated regulations, inefficient customs administration,excessive document requirements, inadequateinfrastructure, cumbersome port procedures, lack ofcoordination at border posts all hinder a firms ability
to trade with the world
What trading across borders measures: documents
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
34/44
34
What trading across borders measures: documents,time and cost
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
35/44
Documentpreparation
TransportationCustoms andother border
agency
Ports andterminalhandling
EXPORTING
Letter of
CreditOtherdocuments(customsdeclarationforms, etc)
Customs
Inspections
Technical/health
Security
Arranging for
transport
Transport
Loading andunloadinggoods
Waiting for vessel
to berth/departLoading andunloading thecontainer
Terminal handling
Documentpreparation Transportation
Customs andother border
agency
Ports andterminalhandling
IMPORTING
Four major steps in the trading process
35
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
36/44
36
The Case Study Assumptions
Exporting and importing from the most populous city in the country
to/from the countrys largest overseas trade partner
via ocean transport using the primary seaport used for that city
in a dry cargo 20-ft full container load (FCL), weighs 10 tons and is valuedat US$20,000.
Product is one of the countrys leading export and import products, and is
o not hazardouso not include military itemso not require refrigeration or any other special environmento not require special phytosanitary or environmental safety standards
Payment is through a Letter of Credit
Company does not operate within an export processing zone or otherspecial export/import privileges.
On average document requirements and delays are
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
37/44
On average, document requirements and delays arehighest in South Asia and Sub-Saharan Africa
Consistent pace of reforms in the area of trading across
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
38/44
- The 46 economies of theSub-Saharan Africa areaimplemented a total of 52trade reforms since 2005
- In areas such as:
Electronic systemsfor customsSingle windows fortradeBorder cooperation
agreementsRisk-basedinspections
Consistent pace of reforms in the area of trading acrossborders has reduced delays in Sub-Saharan Africa
T d i S il d f hi h t d d l
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
39/44
Traders in Swaziland face high costs and delays
450
690
1,032
1,855
435577
1,085
2,030
Global bestperformer:
Malaysia
Regional bestperformer -
Sub-SaharanAfrica: SaoTome andPrincipe
OECDaverage
Swaziland
Export
Import
39
5
11 11
18
4
1311
27Export
Import
Global best
performer:Singapore/Hong Kong
Regional bestperformer Sub-Saharan Africa :Mauritius/Senegal
OECD
average
Cost (USD per container) Time (days)
Swaziland
Where is it easiest to trade?
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
40/44
40
Singapore
Hong Kong SAR, China
Estonia
Korea, Rep.
United Arab Emirates
Finland
Denmark
Sweden
Norway
Israel
Paper-free electronic datainterchange (EDI) system.
Pre-arrival submission of customsdeclaration and manifest.
Less than 10% of containers arephysically controlled, using risk basedinspection systems.
Single Window for obtaining trade
documents and approvals
Efficient ports and transportationinfrastructure
Where is it easiest to trade?What do they have in common?
Global good practicesTop 10 Performers
T di b d f l f l
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
41/44
Trading across borders: successful reform examples
Streamlined documents for exporting and importing (Angola; China; Djibouti;Mali; United Arab Emirates);
Transparent inventory of all fee schedules in the trading process (Israel);
Mapping exercise of the import and export procedures at the port to identifybottlenecks (Zambia, Malawi, Kenya, Sao Tome and Principe);
Electronic submission and processing of all trade documents (130 economiesincluding Chile; Estonia; Turkey);
Single window system for trade-related transactions (49 economies includingColombia; Ghana; Korea; Singapore);
Improved procedures at ports (Djibouti; Senegal; Vanuatu).
41
Th k !
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
42/44
Thank you for your attention!
Contact: Ms. Cemile [email protected]
Thank you!
42
Annex
mailto:[email protected]:[email protected] -
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
43/44
Annex
43
Economies in Sub Saharan Africa on average have weaker legal
-
7/31/2019 IBC SWAZILAND - Doing Business Reforms - Critical Factors 29052012
44/44
Economies in Sub-Saharan Africa on average have weaker legalinstitutions and more expensive regulatory processes than other regions