ZIMBABWE’s global rankings on the ease of doing business dropped this year to 170 out of 185 countries, a report released by the World Bank says.
The country was last year ranked 168. In an economic report titled Doing Business 2013, Zimbabwe has the worst ranking in comparison to other countries in the region such as South Africa, Swaziland and Botswana which were ranked 39, 41 and 132 respectively.
The report on doing business provides an aggregate ranking on the ease of doing business based on indicator sets that measure and benchmark regulations applying to domestic small to medium-size businesses through their life cycle.
The rankings are calculated based on considerations on starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, taxation, trading across borders, enforcing contracts and resolving insolvency.
On the easy of starting a business, Zimbabwe was ranked 143, getting electricity 157, protecting investors 128 , trading across the borders 134, resolving insolvency 169 and enforcing contracts 111.
The report also measures the ease of starting a business in an economy by recording all procedures officially required or commonly done in practice by an entrepreneur to start up and formally operate an industrial or commercial business.
The report also considers the time and cost required to complete these procedures. It also records the paid-in minimum capital that companies must deposit before registration or within three months.
According to the report, starting a business in Zimbabwe requires nine procedures, takes 90 days, costs 107,0% of income per capita and requires paid-in minimum capital of 0,0% of income per capita.
The country is also one of the worst in terms of dealing with construction permits-ranking 170.
“In 2008 Zimbabwe made obtaining construction permits more difficult by imposing inspections by chief building inspectors or deputy chief inspectors, which would take a longer time,” reads part of the report. The World Bank said dealing with requisite construction permits in the country needs 12 procedures, takes 614 days and costs 4 423,4% of income per capita.