Mutare, August 26 2024
The World Bank’s Ease of Doing Business (EODB) index ranks countries based on their business environment and regulatory frameworks. In this article, we compare Zimbabwe and Rwanda, highlighting their EODB rankings, development strategies, and lessons for Zimbabwe’s improvement.
Zimbabwe ranks 140th out of 190 countries in the 2022 EODB index. Starting a business in Zimbabwe is a daunting task, ranking 175th globally. Dealing with construction permits, paying taxes, and trading across borders also pose significant challenges, ranking 166th, 134th, and 156th respectively. In contrast, Rwanda excels, ranking 38th globally. Starting a business in Rwanda is remarkably easy, ranking 4th worldwide. The country also shines in dealing with construction permits (12th), paying taxes (24th), and trading across borders (25th).
Rwanda’s pro-business government policies and streamlined regulatory processes set it apart. Zimbabwe, however, struggles with bureaucratic hurdles and complex procedures. Rwanda’s investment in infrastructure and technology further enhances its business environment. Zimbabwe can learn from Rwanda’s success. Simplifying business registration processes, enhancing regulatory transparency, investing in infrastructure development, and fostering a pro-business environment are crucial steps.
To enhance its EODB ranking, Zimbabwe should ,Implement online business registration platforms, reduce bureaucratic hurdles , enhance tax efficiency ,invest in digital infrastructure ,promote public-private partnerships ,strengthen property rights ,encourage innovation and entrepreneurship .By implementing these reforms, Zimbabwe can improve its business environment, attract investments, and drive sustainable development.
Rwanda’s remarkable progress in ease of doing business offers valuable lessons for Zimbabwe. By embracing pro-business policies, streamlining regulations, and investing in infrastructure, Zimbabwe can unlock its economic potential and foster development.
by Pagiel Mutize: The Eastern Caucus (TECA)
