By Industrial Digest
MANUFACTURERS, Bankers and Investments analysts in Nigeria say rather than discounting the report entirely, the World Bank should restructure it into an “Ease of Starting Business” index and another index for Ease of Doing Business. The latter should cover the real challenges we in Africa faces in doing business.”
The World Bank Group last week announced it has decided to discontinue the publication of its doing business rankings of countries after a review of data irregularities in the 2018 and 2020 reports.
Reacting, Aliyu Suleiman, Group Chief Strategy Officer at Dangote Industries Limited, said: “I am glad to hear that the World Bank is discontinuing the ‘Ease of Doing Business report,’ not because of the recent scandals surrounding it, but because the index is flawed in my opinion.
“About half the metrics have more to do with “starting a Business” rather than “Doing Business”. In Africa, at least, once one has managed to start a business, they would then have to grapple with the real difficulties of “Doing Business”
“These includes security, electricity generation (different from getting electricity connection), logistics (not just for trading across borders, which is covered by the index, but intra-country as well)., regulatory burden, policy (in) consistency, etc. if you asks the businesses that quit Warri (an oil hub in South- south Nigeria) for example, their reason wouldn’t be covered by any of the indices in the report.”
Reaction also came from Abdulkadir Suleiman, Business and Process Audit Lead at the Nova Merchant Bank Ltd.
He said: “The world Bank should have structured the indices into measures for existing businesses, and measure for starting new businesses. However, abolishing the Ease of Doing Business Reports altogether may have negative impact on bolstering private sector investments in developing countries. At the very least, the report is being used by some progressive political leaders to enhance private sector investments.”
Khalil Nur Khalil, the Director, Investment Intelligence at Kaduna Investment Promotion Agency, admitted that the agency uses the report to guide “our Ease of Doing Business reforms, and we are awaiting more clarification from the World Bank.”