The use of ICT in Kenya and Tanzania while searching for business names has reduced the cost and time of registering a business, with the average time taken to start a business falling by 31 per cent across the region.
This is according to the “Doing Business in the East African Community (EAC)” report released by the World Bank and the International Finance Corporation (IFC).
According to the report the use of ICT in EAC countries has been a common feature among reforms aimed at reducing the time it takes to start a business. Kenya and Tanzania offer online name search for companies.
This is on top of other reforms by the East African states that have seen 74 regulatory processes simplified, such as registering property and starting a business.
The report recommends more reforms to increase the volume of trade between the countries in the region and share information between regulators.
“More and broader regulatory reforms, however, will be required for the EAC to significantly increase its share of trade and investment, including strengthening cooperation between business regulators across the five countries and adopting common and improved standards for business laws and regulation to be implemented at the country level,” read a statement from the institutions.
The region however performed dismally in terms of “doing business” rank, with all countries except Burundi falling.
Rwanda was best ranked at 52 globally, down from 48 in 2012, followed by Uganda at 120, Kenya at 121, Tanzania at 134 and Burundi at 159, despite climbing 13 positions.
