World Bank, recently, has unveiled the rank of countries that are convenient for business and investment in 2020. The bank has applied ten criteria to set the rank. In the case of Ethiopia, regarding creating enabling conditions to begin business, the criteria set include: modernity of construction licensing and property registration, lessening electric accessibility challenges, loan provision, revenue payment system and efficient taxation.
According to Fantu Faris, World Bank Ethiopia Representative, Ethiopia ranked 159th out of 190 countries as per the criteria of the bank. In order to improve Ethiopia’s rank, a national committee was established by the prime minister that has been working since last December and multitude deeds of the committee have been recognized by the World Bank.
Adding, Fantu said that Ethiopia has made progress by improving 24 steps especially in the construction sector due to the activities carried out in construction licensing. Besides, improvements undertaken in property registration enabled the country make advancement.
However, there are some challenges in some sectors even now. Among the problems hindered the country’s rank advancement is provision of lessened protection for the investors who have small share in companies, Fantu stated. There are a number of tasks to be carried out yet in order to make Ethiopia conducive for business and investment, she added.
Electric utility supply is among the sectors wrapped by impediments yet. An indicator for this is that obtaining of generator has sustained as a major problem that takes extended time after the formal request. In order to circumvent this problem, Fantu proposed that arranging procedures that engage private investors in electric power supply like other African countries is essential.
Fantu further elaborated that delay in the already begun activities of amending trade legislation that has lasted for over half a century has contributed its own share for the country’s current low level in the global business arena. Improvements set to be applied two months ago at medium level are to be finalized by the end of December though they have focused on online services.
However, there are a lot of problems observed regarding their performance. Though the online service related to license registration and renewing has been performed 80 percent, conduciveness of business arena cannot be assured unless the integration of services associated with ID number of revenue payment, document authentication and payment is not well established, Fantu noted.
The national committee that was formed to create conducive business environment has disclosed on its recent meeting that it is working attentively aiming to improve Ethiopia’s current status at the global level. Nonetheless, there are ample of problems, she detailed.
Dr. Engineer Getahun Mekuria, Innovation and Technology Minister, for his part said that enriching many applications that enable improve services are produced by the ministry. Network problem is among the bottlenecks. Other duties expected from The Ministry are underway to be finalized in a month, he explained.
According to the Minister, the committee lacks commitment. The committee is reluctant in physical application of the issues discussed on in a hall. There is no obvious activity equals to what is discussed in a hall and this is not appropriate, he criticized.
Because of hesitancy among leaders of some institutions on making instant decisions raising insufficient excuses, works to be done in time are left out. The effort to creating conducive trade and investment environment cannot be successful in this trend. “As our goal is improving the country’s trade and investment condition, we have to act swiftly surpassing discussion,” he said.
As of Engineer Getahun’s elaboration, new challenges cannot be resolved by old system. Working beyond expected is necessary in some cases. It is impossible to act being wrapped merely by low and order. Setting goal and making extra decisions to achieve the goal is a must. Preparedness of institutions should also be considered. Providing support for those in need and making accountable those have to be accounted is necessary, he stressed.
Fetlework Zewdie, Trade and Industry Minister, for her part said that all institutions should work hand in hand. Unless there is an integrated procedure again, the goal set to create conducive environment for business cannot be achieved. Imbalance performance in which some part is active but the other is passive results in common failure. Thus, collective actions assist the effort to create conducive business environment, she noted.
Abebe Aabebayehu, Commissioner, Investment Commission and member of the national committee for his part said that improvements Ethiopia has made since the past December has not been handed over to the World Bank in time. As a result, they could not be utilized in the ranking process.
This year’s performances should also be carried out as the schedule and sent in advance up to December. The acceptability of reports handed over after December has minimum chance to be considered. Therefore, it is necessary to act in the sense of urgency, he noted.
Advancing the trade system and electric power supply have great role in the process of creating conducive business environment, he stressed.
The Ethiopian Herald November12, 2019
BY BACHA ZEWDIE
