Ease of Doing Business

At a Glance

A healthy business environment is critical to any effort aimed at developing a local supply sector.
Typical areas for improvement include the speed and clarity of land purchasing and registration, business registration processes, import and export procedures and regulations, and tax payments and reimbursements.
Efforts to improve timeliness and simplify business registration processes are critical to improving the ease of doing business.
Governments may consult regularly with both businesses and extractive industry companies to better understand factors that may undermine the effectiveness of policies to foster local procurement.

Case Studies

New Strengthening Private Sector Engagement in Oil and Gas (Extractives Baraza, Strathmore Extractives Industry Centre, African Development Bank)

Key Resources

Doing Business 2018: Reforming to Create Jobs (World Bank)

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New Strengthening Private Sector Engagement in Oil and Gas

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Backward Linkages (Supplying Extractives)

Backward Linkages (Supplying Extractives) Building the Capacity of Local Businesses

Backward Linkages (Supplying Extractives) Enabling Environments for Suppliers

Backward Linkages (Supplying Extractives) Enabling Environments for Suppliers Ease of Doing Business

This research paper analyzes small and medium enterprises (SMEs) in Uganda and Kenya’s petroleum industry and observes their capacity ...

Topic Briefing

In addition to targeted approaches, a healthy business environment is critical to any effort aimed at developing a local supply sector. Fostering such an environment involves tackling barriers that limit or stall business activity throughout the business life cycle.

Typical areas for improvement include the speed and clarity of land purchase and registration, business registration processes, import and export procedures and regulations, as well as payment and reimbursement for taxes. Efforts to improve timeliness and simplify and clarify the business registration process, while maintaining the quality of administrative and verification processes, are critical to improving the ease of doing business in a country. These aspects are measured and benchmarked in the World Bank’s Doing Business report found in the key resources, and are summarized in figure 1.

*Figure 1: Aspects that influence* the *ease of doing business throughout* the *business lifecycle, reprinted from World Bank Group,* *Doing Business 2018* *(Washington, DC: International Bank for Reconstruction and Development*/*World Bank, 2018), 2*.

It is important that governments consult regularly with local businesses and extractive industry companies to understand what factors may prove problematic for current and potential suppliers, and thus undermine the effectiveness of polices to promote local suppliers’ participation in the extractive industry.