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 should consult regularly with both businesses and extractive industry companies to better understand local factors which may undermine the effectiveness of local supplier participation policies.

In addition to targeted approaches, a healthy business environment is critical to any effort aimed at developing a local supply sector. This involves tackling barriers that limit or stall business activity throughout the business lifecycle. These are summarized in figure 1.

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

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 as well as to 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 below.

It is important that governments consult regularly with both businesses and the extractive industry companies themselves to understand what local factors may be problematic for current and potential suppliers to avoid undermining the effectiveness of local supplier’s participation policies.

Key Resources