I have been studying on different reports concerning about “how to do business”, and one of the interesting space that I met and made me nervous to dig more on the subject was “EASE OF DOING BUSINESS” reports which are always released by the world biggest financial institution, the WB(WORLD BANK).
I’m from Dar es salaam (Tanzania) the commercial city of the country. In the 2020 reports of ease of doing business, our country is at number 141 out of 190 economies which were taken into account.
After studying why the country like Tanzania with full of potential resources would seat on number 141 behind the 2nd economy (SINGAPORE) on ease of doing business which has limited resources. Then I came to realize that there were huge differences between two countries when it comes to “Investment policy”, “Tax rates”, “Fights against corruption”, "“FDI policy”, “The strength of financial sector” etc.
I noticed that Singapore had has good investment policy and hospitality for both local and foreign investors; with little bureaucracy compared to Tanzania. The time to register a company or business in Singapore is too short compared to that within Tanzania.
The corporate Tax in Singapore is 17% , while in Tanzania is 30%. There are no capital gain Tax or Income Tax in Singapore which makes an Singapore the world’s financial hub with the accumlation of funds and FDI(foreign direct investment). Mean while in Tanzania the country has employed a capital gain tax of 10% and an income tax of 18%; which makes the FDI to become so difficult to happen regarding that FDI would improve the economy of the nation.
But I was happy to see Rwanda at 38th place, Kenya at 56th place and I was so much disappointed to see NIGERIA at number 131. So I had to ask myself and to push this concern to you too:
WHO is going to make the business environment to be well and good for doing business in our continent?.. Are We (entrepreneurs) needed to push the limits of our governments’ policies when it comes to trade and Investment, or We can grind and continue to fight with the same environment until we pass all the obstacles to achieve our goals?