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The East African Business Council (EABC) noted that the ease of doing business in the region was rated moderate, with an average rank of 3.22, which was a decline of 0.13 points compared to the 2023 rank of 3.09.
A survey by the East African Business Council, the private sector arm of the East African Community, indicates that the overall ease of doing business in the region deteriorated with all eight indicators declining compared to 2023.
In details contained in the 2024 Ease of Doing Business in the East African Community (EAC) survey, the East African Business Council (EABC) noted that the ease of doing business in the region was rated moderate, with an average rank of 3.22, which was a decline of 0.13 points compared to the 2023 rank of 3.09.
The ease is measured on a scale of one to five, of which, one represents very easy, while five represents very hard. Out of the 201 responses, 113 were from companies engaged in trade in goods, representing 56 percent, while 88 or 44 percent were from businesses involved in trade in services.
All eight indicators registered a decline in comparison to 2023, with government operations declining by 0.19 to 3.60, while removal of trade restrictions declined by 0.18 to 3.55.
Regulations for starting and operating a business in the region declined by 0.17 to 2.83, trade finance by 0.14 to 3.60, trading across borders by 0.14 to 3.26, and making cross-border payments by 0.14 to 2.87. Infrastructure development declined by 0.04 to 2.80, while ease of paying taxes declined by 0.02 to 3.23.
The individual score for the eight surveyed indicators is key in determining the average score for the ease of doing business across the eight East African member states, among which include Uganda, Kenya, Tanzania, Rwanda, Burundi, DR Congo, South Sudan, and Somalia.
The survey indicates that Kenya and Tanzania registered the highest number of respondents – each 50 companies – while Uganda and Burundi registered responses from 34 and 23 companies, respectively.
Rwanda registered responses from 19 companies, DR Congo (13 companies), and South Sudan (eight companies).
In terms of country ranking, Rwanda scored better than other East African partner states, posting a score of 2.83 – which is perceived as easy – followed by Burundi, whose 3.02 score makes it a moderately easy country in doing business.
However, ease of paying taxes, in particular compliance with tax requirements, improved from moderate (3.08) to easy (2.82), while infrastructure development, in particular access to affordable voice and data calls, slightly improved from 2.61 in 2023 to 2.57.
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Other improvements were registered in recognition of professional qualification across the region and the availability of foreign currencies, in particular US dollars.
