Economy Profile 2015 Doing Business 2015
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Doing Business 2015 Burundi
Economy Profile 2015
Burundi
Doing Business 2015 Burundi 2
© 2014 The International Bank for Reconstruction and Development /
The World Bank
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ISBN (paper): 978-1-4648-0351-2
ISBN (electronic): 978-1-4648-0352-9
DOI: 10.1596/978-1-4648-0351-2
ISSN: 1729-2638
Cover design: Corporate Visions, Inc.Doing Business 2015 Burundi 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 6 Starting a business ..................................................................................................................... 16 Dealing with construction permits ........................................................................................... 22 Getting electricity ....................................................................................................................... 30 Registering property .................................................................................................................. 36 Getting credit .............................................................................................................................. 43 Protecting minority investors ................................................................................................... 49 Paying taxes ................................................................................................................................ 60 Trading across borders .............................................................................................................. 65 Enforcing contracts .................................................................................................................... 70 Resolving insolvency .................................................................................................................. 77 Labor market regulation ........................................................................................................... 82 Distance to frontier and ease of doing business ranking ...................................................... 88 Resources on the Doing Business website .............................................................................. 91
Doing Business 2015 Burundi 4
INTRODUCTION
Doing Business sheds light on how easy or difficult it is 1, 2014 (except for the paying taxes indicators, which
for a local entrepreneur to open and run a small to cover the period January–December 2013).
medium-size business when complying with relevant
The Doing Business methodology has limitations. Other
regulations. It measures and tracks changes in
areas important to business—such as an economy’s
regulations affecting 11 areas in the life cycle of a
proximity to large markets, the quality of its
business: starting a business, dealing with construction
infrastructure services (other than those related to
permits, getting electricity, registering property, getting
trading across borders and getting electricity), the
credit, protecting minority investors, paying taxes,
security of property from theft and looting, the
trading across borders, enforcing contracts, resolving
transparency of government procurement,
insolvency and labor market regulation.
macroeconomic conditions or the underlying strength of
In a series of annual reports Doing Business presents institutions—are not directly studied by Doing Business.
quantitative indicators on business regulations and the The indicators refer to a specific type of business,
protection of property rights that can be compared generally a local limited liability company operating in
across 189 economies, from Afghanistan to Zimbabwe, the largest business city. Because standard assumptions
over time. The data set covers 47 economies in Sub- are used in the data collection, comparisons and
Saharan Africa, 32 in Latin America and the Caribbean, 25 benchmarks are valid across economies. The data not
in East Asia and the Pacific, 26 in Eastern Europe and only highlight the extent of obstacles to doing business;
Central Asia, 20 in the Middle East and North Africa and they also help identify the source of those obstacles,
8 in South Asia, as well as 31 OECD high-income supporting policy makers in designing regulatory reform.
economies. The indicators are used to analyze economic
More information is available in the full report. Doing
outcomes and identify what reforms have worked, where
Business 2015 presents the indicators, analyzes their
and why.
relationship with economic outcomes and presents
This economy profile presents the Doing Business business regulatory reforms. The data, along with
indicators for Burundi. To allow useful comparison, it also information on ordering Doing Business 2015, are
provides data for other selected economies (comparator available on the Doing Business website at
economies) for each indicator. The data in this report are http://www.doingbusiness.org.
current as of JuneDoing Business 2015 Burundi 5
CHANGES IN DOING BUSINESS 2015
As part of a 2-year update in methodology, Doing Finally, the name of the employing workers indicator set
Business 2015 incorporates 7 important changes. First, has been changed to labor market regulation, and the
the ease of doing business ranking as well as all topic- scope of this indicator set has also been changed. The
level rankings are now computed on the basis of indicators now focus on labor market regulation
distance to frontier scores (see the chapter on the applying to the retail sector rather than the
distance to frontier and ease of doing business ranking). manufacturing sector, and their coverage has been
Second, for the 11 economies with a population of more expanded to include regulations on labor disputes and
than 100 million, data for a second city have been added on benefits provided to workers. The labor market
to the data set and the ranking calculation. These regulation indicators continue to be excluded from the
economies are Bangladesh, Brazil, China, India, aggregate distance to frontier score and ranking on the
Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian ease of doing business.
Federation and the United States. Third, for getting
Beyond these changes there are 3 other updates in
credit, the methodology has been revised for both the
methodology. For paying taxes, the financial statement
strength of legal rights index and the depth of credit
variables have been updated to be proportional to 2012
information index. The number of points has been
income per capita; previously they were proportional to
increased in both indices, from 10 to 12 for the strength
2005 income per capita. For enforcing contracts, the
of legal rights index and from 6 to 8 for the depth of
value of the claim is now set at twice the income per
credit information index. In addition, only credit bureaus
capita or $5,000, whichever is greater. For dealing with
and registries that cover at least 5% of the adult
construction permits, the cost of construction is now set
population can receive a score on the depth of credit
at 50 times income per capita (before, the cost was
information index.
assessed by the Doing Business respondents). In addition,
Fourth, the name of the protecting investors indicator set this indicator set no longer includes the procedures for
has been changed to protecting minority investors to obtaining a landline telephone connection.
better reflect its scope—and the scope of the indicator
For more details on the changes, see the “What is
set has been expanded to include shareholders’ rights in
changing in Doing Business?” chapter starting on page
corporate governance beyond related-party transactions.
24 of the Doing Business 2015 report. For more details
Fifth, the resolving insolvency indicator set has been
on the data and methodology, please see the “Data
expanded to include an index measuring the strength of
Notes” chapter starting on page 114 of the Doing
the legal framework for insolvency. Sixth, the calculation
Business 2015 report. For more details on the distance to
of the distance to frontier score for paying taxes has
frontier metric, please see the “Distance to frontier and
been changed. The total tax rate component now enters
ease of doing business ranking” chapter in this profile.
the score in a nonlinear fashion, in an approach different
from that used for all other indicators (see the chapter
on the distance to frontier and ease of doing business
ranking).Doing Business 2015 Burundi 6
THE BUSINESS ENVIRONMENT
For policy makers trying to improve their economy’s
regulatory environment for business, a good place to start ECONOMY OVERVIEW
is to find out how it compares with the regulatory
environment in other economies. Doing Business provides
an aggregate ranking on the ease of doing business
Region: Sub-Saharan Africa
based on indicator sets that measure and benchmark
regulations applying to domestic small to medium-size Income category: Low income
businesses through their life cycle. Economies are ranked
from 1 to 189 by the ease of doing business ranking. This Population: 10,162,532
year's report presents results for 2 aggregate measures:
the distance to frontier score and the ease of doing GNI per capita (US$): 280
business ranking. The ranking of economies is determined
by sorting the aggregate distance to frontier (DTF) scores. DB2015 rank: 152
The distance to frontier score benchmarks economies
with respect to regulatory practice, showing the absolute DB2014 rank: 150*
distance to the best performance in each Doing Business
Change in rank: -2
indicator. An economy’s distance to frontier score is
indicated on a scale from 0 to 100, where 0 represents the
DB 2015 DTF: 51.07
worst performance and 100 the frontier. (See the chapter
on the distance to frontier and ease of doing business). DB 2014 DTF: 49.94
The 10 topics included in the ranking in Doing Business
2015: starting a business, dealing with construction Change in DTF: 1.13
permits, getting electricity, registering property, getting
credit, protecting minority investors, paying taxes, trading * DB2014 ranking shown is not last year’s published
across borders, enforcing contracts and resolving ranking but a comparable ranking for DB2014 that
insolvency. The labor market regulation indicators captures the effects of such factors as data
(formerly employing workers) are not included in this corrections and the changes in methodology. See
year’s aggregate ease of doing business ranking, but the the data notes starting on page 114 of the Doing
data are presented in this year’s economy profile. Business 2015 report for sources and definitions.
The aggregate ranking on the ease of doing business
benchmarks each economy’s performance on the
indicators against that of all other economies in the Doing
Business sample (figure 1.1). While this ranking tells much
about the business environment in an economy, it does
not tell the whole story. The ranking on the ease of doing
business, and the underlying indicators, do not measure all
aspects of the business environment that matter to firms
and investors or that affect the competitiveness of the
economy. Still, a high ranking does mean that the
government has created a regulatory environment
conducive to operating a business.Doing Business 2015 Burundi
THE BUSINESS ENVIRONMENT
Figure 1.1 Where economies stand in the global ranking on the ease of doing business
Source: Doing Business database.Doing Business 2015 Burundi THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy regional average (figure 1.2). The economy’s rankings stands in the aggregate ranking on the ease of doing (figure 1.3) and distance to frontier scores (figure 1.4) business is useful. Also useful is to know how it ranks on the topics included in the ease of doing business relative to comparator economies and relative to the ranking provide another perspective. Figure 1.2 How Burundi and comparator economies rank on the ease of doing business Note: The rankings are benchmarked to June 2014 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database.
Doing Business 2015 Burundi 9 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - Burundi (Scale: Rank 189 center, Rank 1 outer edge) Figure 1.4 Distance to frontier scores on Doing Business topics - Burundi (Scale: Score 0 center, Score 100 outer edge) Note: The rankings are benchmarked to June 2014 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database.
Doing Business 2015 Burundi 10
THE BUSINESS ENVIRONMENT
Just as the overall ranking on the ease of doing business tells Doing Business introduced the distance to frontier score. This
only part of the story, so do changes in that ranking. Yearly measure shows how far on average an economy is from the
movements in rankings can provide some indication of best performance achieved by any economy on each Doing
changes in an economy’s regulatory environment for firms, Business indicator.
but they are always relative.
Comparing the measure for an economy at 2 points in time
Moreover, year-to-year changes in the overall rankings do allows users to assess how much the economy’s regulatory
not reflect how the business regulatory environment in an environment as measured by Doing Business has changed
economy has changed over time—or how it has changed in over time—how far it has moved toward (or away from) the
different areas. To aid in assessing such changes, most efficient practices and strongest regulations in areas
covered by Doing Business (figure 1.5).
Figure 1.5 How far has Burundi come in the areas measured by Doing Business?
Note: The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on
each Doing Business indicator since 2010, except for getting credit, paying taxes, protecting minority investors and resolving insolvency
which had methodology changes in 2014 and thus are only comparable to 2013. The measure is normalized to range between 0 and 100,
with 100 representing the best performance (the frontier). See the data notes starting on page 114 of the Doing Business 2015 report for
more details on the distance to frontier score.
Source: Doing Business database.Doing Business 2015 Burundi 11
THE BUSINESS ENVIRONMENT
The absolute values of the indicators tell another part of regulation—such as a regulatory process that can be
the story (table 1.1). The indicators, on their own or in completed with a small number of procedures in a few
comparison with the indicators of a good practice days and at a low cost. Comparison of the economy’s
economy or those of comparator economies in the indicators today with those in the previous year may
region, may reveal bottlenecks reflected in large numbers show where substantial bottlenecks persist—and where
of procedures, long delays or high costs. Or they may they are diminishing.
reveal unexpected strengths in an area of business
Table 1.1 Summary of Doing Business indicators for Burundi
Best performer globally
Congo, Dem. Rep.
Tanzania DB2015
Burundi DB2015
Burundi DB2014
Rwanda DB2015
Uganda DB2015
Indicator
France DB2015
Kenya DB2015
DB2015
DB2015
Starting a Business
18 20 172 28 143 112 124 166 New Zealand (1)
(rank)
Starting a Business (DTF
94.25 93.74 58.53 93.00 74.02 81.66 78.85 63.44 New Zealand (99.96)
Score)
Procedures (number) 3.0 3.0 7.0 5.0 10.0 8.0 9.0 15.0 New Zealand (1.0)*
Time (days) 5.0 5.0 16.0 4.5 30.0 6.5 26.0 32.0 New Zealand (0.5)
Cost (% of income per
13.4 17.5 30.0 0.9 42.7 52.3 23.8 64.4 Slovenia (0.0)
capita)
Paid-in min. capital (%
0.0 0.0 500.0 0.0 0.0 0.0 0.0 0.0 112 Economies (0.0)*
of income per capita)
Dealing with
Hong Kong SAR,
Construction Permits 133 146 111 86 95 34 169 163
China (1)
(rank)
Dealing with
Hong Kong SAR,
Construction Permits 64.16 60.16 67.72 73.14 71.02 81.55 52.03 54.88
China (95.53)
(DTF Score)Doing Business 2015 Burundi 12
Best performer globally
Congo, Dem. Rep.
Tanzania DB2015
Burundi DB2015
Burundi DB2014
Rwanda DB2015
Uganda DB2015
Indicator
France DB2015
Kenya DB2015
DB2015
DB2015
Hong Kong SAR,
Procedures (number) 14.0 14.0 8.0 8.0 8.0 10.0 18.0 15.0
China (5.0)
Time (days) 99.0 99.0 119.0 183.0 125.0 77.0 205.0 154.0 Singapore (26.0)
Cost (% of warehouse
10.1 12.5 11.6 4.7 9.3 4.1 8.1 11.7 Qatar (0.0)*
value)
Getting Electricity
182 178 175 60 151 62 87 184 Korea, Rep. (1)
(rank)
Getting Electricity (DTF
35.27 35.27 43.19 79.87 58.85 79.48 75.28 33.48 Korea, Rep. (99.83)
Score)
Procedures (number) 5.0 5.0 6.0 5.0 6.0 4.0 4.0 6.0 12 Economies (3.0)*
Time (days) 158.0 158.0 65.0 79.0 158.0 34.0 109.0 132.0 Korea, Rep. (18.0)*
Cost (% of income per
16,367.3 20,509.0 16,191.8 42.9 1,020.2 3,073.9 1,453.0 11,004.9 Japan (0.0)
capita)
Registering Property
48 51 142 126 136 15 123 125 Georgia (1)
(rank)
Registering Property
78.38 77.81 55.39 59.36 56.88 89.20 60.10 59.76 Georgia (99.88)
(DTF Score)
Procedures (number) 5.0 5.0 7.0 8.0 9.0 3.0 8.0 11.0 4 Economies (1.0)*
Time (days) 23.0 26.0 44.0 49.0 72.0 32.0 67.0 43.0 3 Economies (1.0)*
Cost (% of property
3.2 3.2 9.5 6.1 4.3 0.1 4.5 2.6 4 Economies (0.0)*
value)
Getting Credit (rank) 171 169 131 71 116 4 151 131 New Zealand (1)
Getting Credit (DTF
10.00 10.00 30.00 50.00 35.00 90.00 25.00 30.00 New Zealand (100)
Score)
Strength of legal rights
2 2 6 4 7 11 5 6 3 Economies (12)*
index (0-12)Doing Business 2015 Burundi 13
Best performer globally
Congo, Dem. Rep.
Tanzania DB2015
Burundi DB2015
Burundi DB2014
Rwanda DB2015
Uganda DB2015
Indicator
France DB2015
Kenya DB2015
DB2015
DB2015
Depth of credit
0 0 0 6 0 7 0 0 23 Economies (8)*
information index (0-8)
Credit registry coverage
3.9 0.3 0.2 44.5 0.0 2.4 0.0 0.0 Portugal (100.0)
(% of adults)
Credit bureau coverage
0.0 0.0 0.0 0.0 4.9 15.7 0.6 4.9 23 Economies (100.0)*
(% of adults)
Protecting Minority
94 91 146 17 122 117 141 110 New Zealand (1)
Investors (rank)
Protecting Minority
51.67 51.67 42.50 67.50 45.83 46.67 43.33 47.50 New Zealand (81.67)
Investors (DTF Score)
Extent of conflict of
interest regulation 6.3 6.3 4.0 5.7 4.7 6.3 5.3 5.0 Singapore (9.3)*
index (0-10)
Extent of shareholder
governance index (0- 4.0 4.0 4.5 7.8 4.5 3.0 3.3 4.5 France (7.8)*
10)
Strength of minority
investor protection 5.2 5.2 4.3 6.8 4.6 4.7 4.3 4.8 New Zealand (8.2)
index (0-10)
United Arab Emirates
Paying Taxes (rank) 124 126 168 95 102 27 148 104
(1)*
Paying Taxes (DTF United Arab Emirates
66.78 64.40 46.11 72.12 71.49 85.79 58.95 71.32
Score) (99.44)*
Payments (number per Hong Kong SAR,
25.0 25.0 50.0 8.0 30.0 17.0 49.0 31.0
year) China (3.0)*
Time (hours per year) 274.0 274.0 316.0 137.0 201.5 107.0 181.0 209.0 Luxembourg (55.0)
Trading Across Borders
169 171 175 10 153 164 137 161 Singapore (1)
(rank)
Trading Across Borders 37.50 33.52 29.09 90.18 54.49 44.67 62.96 48.01 Singapore (96.47)Doing Business 2015 Burundi 14
Best performer globally
Congo, Dem. Rep.
Tanzania DB2015
Burundi DB2015
Burundi DB2014
Rwanda DB2015
Uganda DB2015
Indicator
France DB2015
Kenya DB2015
DB2015
DB2015
(DTF Score)
Documents to export
9 9 7 2 8 7 7 7 Ireland (2)*
(number)
Time to export (days) 32.0 32.0 44.0 10.0 26.0 26.0 18.0 28.0 5 Economies (6.0)*
Cost to export (US$ per
2,905.0 2,905.0 3,365.0 1,335.0 2,255.0 3,245.0 1,090.0 2,800.0 Timor-Leste (410.0)
container)
Cost to export (deflated
2,905.0 3,295.8 3,365.0 1,335.0 2,255.0 3,245.0 1,090.0 2,800.0
US$ per container)
Documents to import
9 9 10 2 9 9 11 10 Ireland (2)*
(number)
Time to import (days) 43.0 46.0 63.0 11.0 26.0 27.0 26.0 31.0 Singapore (4.0)
Cost to import (US$ per
4,420.0 4,420.0 4,290.0 1,445.0 2,350.0 4,990.0 1,615.0 3,375.0 Singapore (440.0)
container)
Cost to import (deflated
4,420.0 5,014.6 4,290.0 1,445.0 2,350.0 4,990.0 1,615.0 3,375.0
US$ per container)
Enforcing Contracts
158 158 176 10 137 62 45 80 Singapore (1)
(rank)
Enforcing Contracts
42.15 42.15 33.51 77.67 48.96 63.94 66.17 60.48 Singapore (89.54)
(DTF Score)
Time (days) 832.0 832.0 610.0 395.0 465.0 230.0 515.0 490.0 Singapore (150.0)
Cost (% of claim) 38.6 38.6 80.6 17.4 47.2 82.7 14.3 31.3 Iceland (9.0)
Procedures (number) 44.0 44.0 43.0 29.0 44.0 23.0 38.0 38.0 Singapore (21.0)*
Resolving Insolvency
144 142 189 22 134 101 105 98 Finland (1)
(rank)
Resolving Insolvency
30.55 30.70 0.00 75.94 33.31 41.77 41.12 42.27 Finland (93.85)
(DTF Score)Doing Business 2015 Burundi 15
Best performer globally
Congo, Dem. Rep.
Tanzania DB2015
Burundi DB2015
Burundi DB2014
Rwanda DB2015
Uganda DB2015
Indicator
France DB2015
Kenya DB2015
DB2015
DB2015
no
Time (years) 5.0 5.0 1.9 4.5 2.5 3.0 2.2 Ireland (0.4)
practice
no
Cost (% of estate) 30.0 30.0 9.0 22.0 29.0 22.0 29.5 Norway (1.0)
practice
Outcome (0 as
no
piecemeal sale and 1 as 0 0 1 1 0 0 1
practice
going concern)
Recovery rate (cents on
7.4 7.7 0.0 77.2 27.1 19.5 21.2 37.9 Japan (92.9)
the dollar)
Strength of insolvency no
8.5 8.5 11.0 6.0 10.0 9.5 7.0 5 Economies (15.0)*
framework index (0-16) practice
Note: DB2014 rankings shown are not last year’s published rankings but comparable rankings for DB2014 that capture the effects of such
factors as data corrections and changes to the methodology. Trading across borders deflated and non-deflated values are identical in
DB2015 because it is defined as the base year for the deflator. The best performer on time for paying taxes is defined as the lowest time
recorded among all economies in the DB2015 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory contributions, and
VAT or sales tax. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice”
mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a
competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the
relevant indicator.
* Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the number
of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website
(http://www.doingbusiness.org).
Source: Doing Business database.Doing Business 2015 Burundi 16
STARTING A BUSINESS
Formal registration of companies has many WHAT THE STARTING A BUSINESS
immediate benefits for the companies and for
business owners and employees. Legal entities can INDICATORS MEASURE
outlive their founders. Resources are pooled as
several shareholders join forces to start a company. Procedures to legally start and operate a
Formally registered companies have access to company (number)
services and institutions from courts to banks as well
Preregistration (for example, name
as to new markets. And their employees can benefit
verification or reservation, notarization)
from protections provided by the law. An additional
benefit comes with limited liability companies. These Registration in the economy’s largest
limit the financial liability of company owners to their business city1
investments, so personal assets of the owners are not
Postregistration (for example, social security
put at risk. Where governments make registration
registration, company seal)
easy, more entrepreneurs start businesses in the
formal sector, creating more good jobs and Time required to complete each procedure
generating more revenue for the government. (calendar days)
What do the indicators cover? Does not include time spent gathering
information
Doing Business measures the ease of starting a
business in an economy by recording all procedures Each procedure starts on a separate day (2
officially required or commonly done in practice by procedures cannot start on the same day).
an entrepreneur to start up and formally operate an Procedures that can be fully completed
industrial or commercial business—as well as the online are recorded as ½ day.
time and cost required to complete these procedures. Procedure completed once final document is
It also records the paid-in minimum capital that received
companies must deposit before registration (or
within 3 months). The ranking of economies on the No prior contact with officials
ease of starting a business is determined by sorting Cost required to complete each procedure
their distance to frontier scores for starting a (% of income per capita)
business. These scores are the simple average of the
distance to frontier scores for each of the component Official costs only, no bribes
indicators. No professional fees unless services required
To make the data comparable across economies, by law
Doing Business uses several assumptions about the Paid-in minimum capital (% of income
business and the procedures. It assumes that all per capita)
information is readily available to the entrepreneur
and that there has been no prior contact with Deposited in a bank or with a notary before
officials. It also assumes that the entrepreneur will registration (or within 3 months)
pay no bribes. And it assumes that the business:
Is a limited liability company, located in the Has a start-up capital of 10 times income per
largest business city and is 100% domestically capita.
owned1.
Has a turnover of at least 100 times income per
Has between 10 and 50 employees. capita.
Conducts general commercial or industrial Does not qualify for any special benefits.
activities.
Does not own real estate.
1
For the 11 economies with a population of more than 100 million, data for a second city have been added.Doing Business 2015 Burundi 17 STARTING A BUSINESS Where does the economy stand today? What does it take to start a business in Burundi? largest business city of an economy, except for 11 According to data collected by Doing Business, starting a economies for which the data are a population-weighted business there requires 3.0 procedures, takes 5.0 days, average of the 2 largest business cities. See the chapter costs 13.4% of income per capita and requires paid-in on distance to frontier and ease of doing business minimum capital of 0.0% of income per capita (figure ranking at the end of this profile for more details. 2.1). Most indicator sets refer to a case scenario in the Figure 2.1 What it takes to start a business in Burundi Paid-in minimum capital (% of income per capita): 0.0 Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the starting a business indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter. Source: Doing Business database.
Doing Business 2015 Burundi 18 STARTING A BUSINESS Globally, Burundi stands at 18 in the ranking of 189 average ranking provide other useful information for economies on the ease of starting a business (figure 2.2). assessing how easy it is for an entrepreneur in Burundi to The rankings for comparator economies and the regional start a business. Figure 2.2 How Burundi and comparator economies rank on the ease of starting a business Source: Doing Business database.
Doing Business 2015 Burundi 19
STARTING A BUSINESS
Economies around the world have taken steps making it they often are part of a larger regulatory reform
easier to start a business—streamlining procedures by program. Among the benefits have been greater firm
setting up a one-stop shop, making procedures simpler satisfaction and savings and more registered businesses,
or faster by introducing technology and reducing or financial resources and job opportunities.
eliminating minimum capital requirements. Many have
What business registration reforms has Doing Business
undertaken business registration reforms in stages—and
recorded in Burundi (table 2.1)?
Table 2.1 How has Burundi made starting a business easier—or not?
By Doing Business report year from DB2010 to DB2015
DB year Reform
Burundi made starting a business easier by eliminating the
requirements to have company documents notarized, to
DB2013 publish information on new companies in a journal and to
register new companies with the Ministry of Trade and
Industry.
Burundi made starting a business easier by allowing
registration with the Ministry of Labor at the one-stop shop
DB2014
and by speeding up the process of obtaining the registration
certificate.
Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports
for these years, available at http://www.doingbusiness.org.
Source: Doing Business database.Doing Business 2015 Burundi 20
STARTING A BUSINESS
What are the details?
Underlying the indicators shown in this chapter for
STANDARDIZED COMPANY
Burundi is a set of specific procedures—the
bureaucratic and legal steps that an entrepreneur
must complete to incorporate and register a new Legal form: Société à Responsabilité Limitée
firm. These are identified by Doing Business through (SARL) - Limited Liability Company
collaboration with relevant local professionals and
the study of laws, regulations and publicly available Paid in minimum capital requirement: BIF 0
information on business entry in that economy. City: Bujumbura
Following is a detailed summary of those procedures,
along with the associated time and cost. These Start-up Capital: 10 times GNI per capita
procedures are those that apply to a company
matching the standard assumptions (the
“standardized company”) used by Doing Business in
collecting the data (see the section in this chapter on
what the indicators measure).
Table 2.2 Summary of time, cost and procedures for starting a business in Burundi
Time to
No. Procedure Cost to complete
complete
Submit all documents to the one-stop shop (API) and obtain
registration certificate and the tax identification number
The following documents need to be submitted at the Agence des
Promotions des Investissements (API):
1. Application form for the creation of a new company (includes name
of the company, type of company, address, initial capital, number of
partners and their names, contribution of each partner)
2. Standard company statutes
3. Application form for registration with the Greffe of the Tribunal de
Commerce BIF 40,000 for a LLC
4. Application form for registration with the OBR to obtain the NIF performing general
5. Photos of all partners 2 days commercial
1
6. Copy of identities of all partners
activities
The applicant first deposits all these documents at the API and then
pays the registration fees of BIF 40,000 at the API. The applicant will
then obtain a certificate of incorporation and a fiscal identification
number (NIF) issued by the tax authority (Office Burundais des
Recettes). In addition, the applicant can now complete the registration
of the company with the National Institute for Social Security at the
one-stop shop.
Agency: Commercial RegistryDoing Business 2015 Burundi 21
Time to
No. Procedure Cost to complete
complete
Pay the registration fees at the Commercial Bank cashier
All new businesses must pay the registration fees at the Commercial
Bank cashier.
2 1 day no charge
Agency: Bank
Make a company seal
The company seal is not required by law but it is done in practice. Some
banks would require the company seal to issue a loan contract, for
3 example. 2 days BIF 20,000
Agency: Shops dealing with stamp making
* Takes place simultaneously with another procedure.
Note: Online procedures account for 0.5 days in the total time calculation.
Source: Doing Business database.Doing Business 2015 Burundi 22
DEALING WITH CONSTRUCTION PERMITS
Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION
public. But it needs to be efficient, to avoid excessive
PERMITS INDICATORS MEASURE
constraints on a sector that plays an important part in
every economy. Where complying with building
regulations is excessively costly in time and money, Procedures to legally build a warehouse
many builders opt out. They may pay bribes to pass (number)
inspections or simply build illegally, leading to Submitting all relevant documents and
hazardous construction that puts public safety at risk. obtaining all necessary clearances, licenses,
Where compliance is simple, straightforward and permits and certificates
inexpensive, everyone is better off. Submitting all required notifications and
What do the indicators cover? receiving all necessary inspections
Doing Business records the procedures, time and cost Obtaining utility connections for water and
for a business in the construction industry to obtain sewerage
all the necessary approvals to build a warehouse in Registering the warehouse after its
the economy’s largest business city, connect it to completion (if required for use as collateral or
basic utilities and register the warehouse so that it for transfer of the warehouse)
can be used as collateral or transferred to another Time required to complete each procedure
entity. (calendar days)
The ranking of economies on the ease of dealing with Does not include time spent gathering
construction permits is determined by sorting their information
distance to frontier scores for dealing with
Each procedure starts on a separate day.
construction permits. These scores are the simple
Procedures that can be fully completed online
average of the distance to frontier scores for each of
are recorded as ½ day.
the component indicators.
Procedure considered completed once final
To make the data comparable across economies, document is received
Doing Business uses several assumptions about the
business and the warehouse, including the utility No prior contact with officials
connections. Cost required to complete each procedure (%
The business: of warehouse value)
Official costs only, no bribes
Is a limited liability company operating in
the construction business and located in Will have complete architectural and
the largest business city. For the 11 technical plans prepared by a licensed
economies with a population of more than architect or engineer.
100 million, data for a second city have
Will be connected to water and sewerage
been added. Is domestically owned and
(sewage system, septic tank or their
operated.
equivalent). The connection to each utility
Has 60 builders and other employees. network will be 150 meters (492 feet) long.
The warehouse: Will be used for general storage, such as of
books or stationery (not for goods requiring
Is valued at 50 times income per capita.
special conditions).
Is a new construction (there was no
Will take 30 weeks to construct (excluding all
previous construction on the land).
delays due to administrative and regulatory
requirements).Doing Business 2015 Burundi 23 DEALING WITH CONSTRUCTION PERMITS Where does the economy stand today? What does it take to comply with the formalities to build business city of an economy, except for 11 economies for a warehouse in Burundi? According to data collected by which the data are a population-weighted average of the Doing Business, dealing with construction permits there 2 largest business cities. See the chapter on distance to requires 14.0 procedures, takes 99.0 days and costs frontier and ease of doing business ranking at the end of 10.1% of the warehouse value (figure 3.1). Most this profile for more details. indicator sets refer to a case scenario in the largest Figure 3.1 What it takes to comply with formalities to build a warehouse in Burundi Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the dealing with construction permits indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter. Source: Doing Business database.
Doing Business 2015 Burundi 24 DEALING WITH CONSTRUCTION PERMITS Globally, Burundi stands at 133 in the ranking of 189 economies and the regional average ranking provide economies on the ease of dealing with construction other useful information for assessing how easy it is for permits (figure 3.2). The rankings for comparator an entrepreneur in Burundi to legally build a warehouse. Figure 3.2 How Burundi and comparator economies rank on the ease of dealing with construction permits Source: Doing Business database.
Doing Business 2015 Burundi 25
DEALING WITH CONSTRUCTION PERMITS
Smart regulation ensures that standards are met while an effort to ensure building safety while keeping
making compliance easy and accessible to all. Coherent compliance costs reasonable, governments around the
and transparent rules, efficient processes and adequate world have worked on consolidating permitting
allocation of resources are especially important in sectors requirements. What construction permitting reforms has
where safety is at stake. Construction is one of them. In Doing Business recorded in Burundi (table 3.1)?
Table 3.1 How has Burundi made dealing with construction permits easier—or not?
By Doing Business report year from DB2010 to DB2015
DB year Reform
Burundi made dealing with construction permits easier by
DB2012
reducing the cost to obtain a geotechnical study.
Burundi made obtaining a construction permit easier by
DB2013 eliminating the requirement for a clearance from the Ministry
of Health and reducing the cost of the geotechnical study.
Burundi made dealing with construction permits easier by
DB2014 establishing a one-stop shop for obtaining building permits
and utility connections.
Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reports
for these years, available at http://www.doingbusiness.org.
Source: Doing Business database.Doing Business 2015 Burundi 26
DEALING WITH CONSTRUCTION PERMITS
What are the details?
The indicators reported here for Burundi are based
BUILDING A WAREHOUSE
on a set of specific procedures—the steps that a
company must complete to legally build a
warehouse—identified by Doing Business through Estimated cost of
information collected from experts in construction BIF 22,359,770
construction :
licensing, including architects, civil engineers,
construction lawyers, construction firms, utility
City : Bujumbura
service providers and public officials who deal with
building regulations. These procedures are those The procedures, along with the associated time and cost,
that apply to a company and structure matching the are summarized below.
standard assumptions used by Doing Business in
collecting the data (see the section in this chapter on
what the indicators cover).
Table 3.2 Summary of time, cost and procedures for dealing with construction permits in Burundi
Time to
No. Procedure Cost to complete
complete
Obtain a geotechnical study
Fees are based on a maximum calculation (Maximum d'essais), which
comprises all the verifications the National Laboratory of Construction
and Public Works has to do.
1 14 days BIF 600,000
Agency: National Laboratory for Building Construction and Public Works
(Laboratoire National Du Bâtiment et des Travaux Publics)
Submit application for the building permit at the DGHU
Documents needed for the building permit are:
• One copy of the property title
• One copy of the original payment receipt of the “rrais de viabilisation”
• One copy of the original “proces Verbal de bornage et d’arpentage”
(obtained when the property title is being processed on the bare land)
• Construction plans: Vues en plan, facades, coupe, plan d’implantation
(4 copies of each)
• Original estimated cost of construction: original (3 copies)
• Original septic tank plan (3 copies) 1 day no charge
2
• Original structural plan since it is a G1 structure (ground level with 1
floor)
• Original geotechnical study since it is a G1 structure
The files are submitted at the ‘Service de Control de la DGHU’, who in
turn will forward them internally to the Service de L’instruction.
Applicants are instructed to return to the DGHU 3 days after submitting
their files to check on the status of the applications and to see whether
additional information or documents or changes must be made to the
plans. Assuming that no modifications are required, BuildCo will
accompany the inspector to the site of construction. This is to verifyDoing Business 2015 Burundi 27
Time to
No. Procedure Cost to complete
complete
that the parcel is correct and no construction work has started without
a permit.
During those 3 days, the service verifies the plans, particularly in terms
of “plan d’occupation des sols” (which surface one is allowed to build
on). If some remarks and missing documents need to be addressed, the
on-premise inspection will occur once all issues are addressed.
Agency: Directorate of Urban Planning and Habitat (DGHU)
Pay permit fees and the construction tax at the Banque de la
Republique du Burundi
Payment of the permit fees and the construction tax is made at the
Banque de la Republique du Burundi.
The cost of the permit is 0.6% of estimated construction cost per
square meter (BIF 750,000.00 x 1,300.6).
3 1 day BIF 654,399
In addition, the urban development cost must also be paid and the
amount depends on the location of construction. For the Doing
Business case study, the location of the warehouse is the “quartier des
usines.” For this specific location, the cost is BIF 400 per square meter
of the building (BIF 400 * 1,300.6).
Agency: Banque de la Republique du Burundi
Present proof of payment of the construction tax (taxe de batisse)
to the DGHU
The proof of payment must be provided to the DGHU. 1 day no charge
4
Agency: Directorate of Urban Planning and Habitat (DGHU)
Obtain building permit
There are two signatures on a building permit. The Director of DGHU
signs the file which is then forwarded to the Director General of DGHU
for his signature. There are no mechanisms to inform applicants that
5 their construction permit has been processed. It is the responsibility of 14 days no charge
the applicant to follow up.
Agency: Directorate of Urban Planning and Habitat (DGHU)
Request certificate of conformity and proof of development
Once the construction is completed, the owner requests an ‘attestation
de mise en valeur et de conformité’ from DGHU. This attestation 1 day no charge
6
validates that the construction has been built in accordance to the
approved plans. To complete the attestation, DGHU will inspect the site
of construction.Doing Business 2015 Burundi 28
Time to
No. Procedure Cost to complete
complete
The application for a certificate of conformity must be accompanied by
a picture of the newly constructed building.
Agency: Directorate of Urban Planning and Habitat (DGHU)
Receive inspection from DGHU
7 1 day no charge
Agency: Directorate of Urban Planning and Habitat (DGHU)
Obtain certificate of conformity and proof of development
8 1 day no charge
Agency: Directorate of Urban Planning and Habitat (DGHU)
Deposit request for the modification of the "proces verbal de
bornage et d'arpentage" at the Cadastre
Once a building has been completed, it must be registered at the Land
Registry to have a property tile. Therefore, the “process verbal de
bornage et d’arpentage” must be modified to reflect the new
9 constructed building. A new “process verbal de bornage et 1 day no charge
d’arpentage" will be issued. This is required in order for the Land
Registry to issue the property title.
Agency: Direction National du Cadastre
Receive site inspection from the Cadastre
10 1 day no charge
Agency: Direction National du Cadastre
Obtain updated "proces verbal de bornage et d'arpentage" from
the Cadastre
11 3 days no charge
Agency: Direction National du Cadastre
Request and receive updated property title from the land registry
12 60 days BIF 2,500
Agency: Department of Land Titles (Ministry of Justice)Doing Business 2015 Burundi 29
Time to
No. Procedure Cost to complete
complete
* Obtain water connection
13 30 days BIF 500,000
Agency: REGIDESO
* Obtain sewage connection
14 15 days BIF 500,000
Agency: SETEMU
* Takes place simultaneously with another procedure.
Note: Online procedures account for 0.5 days in the total time calculation.
Source: Doing Business database.Doing Business 2015 Burundi 30
GETTING ELECTRICITY
Access to reliable and affordable electricity is vital for WHAT THE GETTING ELECTRICITY
businesses. To counter weak electricity supply, many
firms in developing economies have to rely on self- INDICATORS MEASURE
supply, often at a prohibitively high cost. Whether
electricity is reliably available or not, the first step for Procedures to obtain an electricity
a customer is always to gain access by obtaining a connection (number)
connection.
Submitting all relevant documents and
What do the indicators cover? obtaining all necessary clearances and permits
Doing Business records all procedures required for a Completing all required notifications and
local business to obtain a permanent electricity receiving all necessary inspections
connection and supply for a standardized warehouse,
as well as the time and cost to complete them. These Obtaining external installation works and
procedures include applications and contracts with possibly purchasing material for these works
electricity utilities, clearances from other agencies Concluding any necessary supply contract and
and the external and final connection works. The obtaining final supply
ranking of economies on the ease of getting
electricity is determined by sorting their distance to Time required to complete each procedure
frontier scores for getting electricity. These scores are (calendar days)
the simple average of the distance to frontier scores Is at least 1 calendar day
for each of the component indicators. To make the
data comparable across economies, several Each procedure starts on a separate day
assumptions are used. Does not include time spent gathering
The warehouse: information
Is owned by a local entrepreneur, located Reflects the time spent in practice, with little
in the economy’s largest business city, in follow-up and no prior contact with officials
an area where other warehouses are Cost required to complete each procedure
located. For the 11 economies with a (% of income per capita)
population of more than 100 million, data
Official costs only, no bribes
for a second city have been added.
Excludes value added tax
Is not in a special economic zone where
the connection would be eligible for
subsidization or faster service. Is to either the low-voltage or the medium-
voltage distribution network and either
Is located in an area with no physical
overhead or underground, whichever is more
constraints (ie. property not near a railway).
common in the area where the warehouse is
Is a new construction being connected to located. Included only negligible length in the
electricity for the first time. customer’s private domain.
Is 2 stories, both above ground, with a total Requires crossing of a 10-meter road but all
surface of about 1,300.6 square meters the works are carried out in a public land, so
(14,000 square feet), is built on a plot of there is no crossing into other people's
929 square meters (10,000 square feet), is private property.
used for storage of refrigerated goods
Involves installing one electricity meter. The
The electricity connection: monthly electricity consumption will be
26880 kilowatt hour (kWh). The internal
Is 150 meters long and is a 3-phase, 4-wire
electrical wiring has been completed.
Y, 140-kilovolt-ampere (kVA) (subscribed
capacity) connection.Doing Business 2015 Burundi 31
GETTING ELECTRICITY
Where does the economy stand today?
What does it take to obtain a new electricity connection Most indicator sets refer to a case scenario in the largest
in Burundi? According to data collected by Doing business city of an economy, except for 11 economies for
Business, getting electricity there requires 5.0 procedures, which the data are a population-weighted average of the
takes 158.0 days and costs 16367.3% of income per 2 largest business cities. See the chapter on distance to
capita (figure 4.1). frontier and ease of doing business ranking at the end of
this profile for more details.
Figure 4.1 What it takes to obtain an electricity connection in Burundi
Note: Time shown in the figure above may not reflect simultaneity of procedures. For more information on the methodology of the
getting electricity indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected
here, see the summary at the end of this chapter.
Source: Doing Business database.Doing Business 2015 Burundi 32 GETTING ELECTRICITY Globally, Burundi stands at 182 in the ranking of 189 average ranking provide another perspective in assessing economies on the ease of getting electricity (figure 4.2). how easy it is for an entrepreneur in Burundi to connect The rankings for comparator economies and the regional a warehouse to electricity. Figure 4.2 How Burundi and comparator economies rank on the ease of getting electricity Source: Doing Business database.
Doing Business 2015 Burundi 33
GETTING ELECTRICITY
Obtaining an electricity connection is essential to enable ensure safety in the connection process while keeping
a business to conduct its most basic operations. In many connection costs reasonable, governments around the
economies the connection process is complicated by the world have worked to consolidate requirements for
multiple laws and regulations involved—covering service obtaining an electricity connection. What reforms in
quality, general safety, technical standards, procurement getting electricity has Doing Business recorded in
practices and internal wiring installations. In an effort to Burundi (table 4.1)?
Table 4.1 How has Burundi made getting electricity easier—or not?
By Doing Business report year from DB2010 to DB2015
DB year Reform
Burundi made getting electricity easier by eliminating the
electricity utility’s monopoly on the sale of materials needed
DB2014
for new connections and by dropping the processing fee for
new connections.
Source: Doing Business database.Doing Business 2015 Burundi 34
GETTING ELECTRICITY
What are the details?
The indicators reported here for Burundi are based on a
OBTAINING AN ELECTRICITY CONNECTION
set of specific procedures—the steps that an
entrepreneur must complete to get a warehouse
connected to electricity by the local distribution utility— Régie de Production et
identified by Doing Business. Data are collected from the Name of utility: Distribution d'Eau et
distribution utility, then completed and verified by d'Electricité (Regideso)
electricity regulatory agencies and independent
professionals such as electrical engineers, electrical City: Bujumbura
contractors and construction companies. The electricity
The procedures are those that apply to a warehouse and
distribution utility surveyed is the one serving the area electricity connection matching the standard
(or areas) in which warehouses are located. If there is a assumptions used by Doing Business in collecting the
choice of distribution utilities, the one serving the largest data (see the section in this chapter on what the
number of customers is selected. indicators cover). The procedures, along with the
associated time and cost, are summarized below.
Table 4.2 Summary of time, cost and procedures for getting electricity in Burundi
Time to
No. Procedure Cost to complete
complete
Client submits application at one of REGIDESO's customer service
centers, await and receive estimate
Applications cannot be submitted online. The customer goes to a
REGIDESO customer service office in person and completes a form to
request the connection. The documents needed for the application do
not need to be notarized. The customer must specify the location of the
warehouse. The customer has to provide copies of two documents, the
national identification card and the family composition certificate. There
is an application fee to be paid. A few days after the external inspection,
the customer goes to the office of REGIDESO to obtain the estimate and
to pay it. Once payment is made, REGIDESO will prepare a report of the
1 works. This is an internal report listing all the material necessary for the 16 calendar days BIF 0
connection. The report is then transmitted to the department in charge
of the actual connection work.
No internal inspection and no certificate regarding the safety of the
internal wiring has to be submitted. The electrician must be a licensed
one, but not necessarily with REGIDESO. The customer takes the entire
responsibility regarding the safety of the internal wiring with signing the
contract.
Agency: REGIDESO-BurundiYou can also read
