Hello! Here's what you need to know for September 6th in 3 minutes.
What’s going on? The ease of doing business in Africa. A Nigerian startup - TalentQ - a talent pipeline company, set up an office in Rwanda in 12 hours and a working permit in 7 days. The CEO shared on LinkedIn - “…how we incorporated in Rwanda in less than 12 hours and how I got my permit in less than 7 days.” In the World Bank 2020 global report on “Doing Business 2020”, Rwanda ranked 38 and number one in Africa.
Zooming out. Will AfCFTA help more African countries improve their ease of doing business? Really, improve and not the press conference improvement type that always looks like a political rally than an economic benefit. The 3 African countries topping the rank on the Doing Business 2020 report are Rwanda, Morrocco and Kenya with a global ranking of 38, 53 and 56 respectively. Nigeria is ranked 131 behind South Africa (84) and Ghana (118) globally. A World Bank publication stated that 'with the implementation of AfCFTA, trade facilitation measures that cut red tape and simplify customs procedures would drive $292 billion of the $450 billion in potential income gains.’
Looking ahead. African startups, many founded in the continent, are headquartered in other countries where the regulations of doing business are not so stiff that the impact and risk on the business are neck-breaking. For instance, Patricia - a crypto startup, relocated to Estonia. Another is Paga. The CEO, Tayo Oviosu, said “the tax benefits of Mauritius can be gained onshore UK or offshore UK or Netherlands or Luxemburg.” according to this post. One way to improve the ease of doing business in Africa, where no country is left behind, is through partnership-sharing of intelligence. Look at this 👉 “Rwanda’s progress over the past 10 years inspired authorities in Togo, leading several Togolese delegations to visit Kigali to learn about successful reforms. Togo’s president set a goal to be number one in West Africa in Doing Business 2020”. Nigeria has embarked on a comprehensive reform journey following the example of Kenya. This is what AfCFTA should facilitate.
To a productive week!
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