Burundi Economy Profile - Doing Business 2019
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Doing Business 2019 Burundi Economy Profile of Burundi Doing Business 2019 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality Page 2
Doing Business 2019 Burundi About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. More about Doing Business (PDF, 5MB) Page 3
Doing Business 2019 Burundi Ease of Doing Business in DB 2019 Rank Region Sub-Saharan Africa 190 1 Burundi Income Category Low income 168 DB 2019 Ease of doing business score Population 10,864,245 0 100 City Covered Bujumbura 47.41 DB 2019 Ease of Doing Business Score 0 100 77.29: France (Rank: 32) 70.31: Kenya (Rank: 61) 57.06: Uganda (Rank: 127) 51.61: Regional Average (Sub-Saharan Africa) 47.41: Burundi (Rank: 168) 36.85: Congo, Dem. Rep. (Rank: 184) Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Burundi 1 17 28 55 82 Rank 97 109 132 138 136 147 162 158 163 169 178 183 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Ease of Doing Business Score on Doing Business topics - Burundi 100 94.84 80 62.58 60.87 Score 60 55.14 47.34 43.33 42.97 40 30.61 26.45 20 10.00 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Page 4
Doing Business 2019 Burundi Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the a company (number) business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type city of limited liability company in the economy, the most common among domestic firms • Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation registration, company seal) lawyers or the statistical office. - Operates in the economy’s largest business city. For 11 economies the data are • Obtaining approval from spouse to start a business or to leave the home to register the also collected for the second largest business city. company - The entire office space is approximately 929 square meters (10,000 square feet). - Is 100% domestically owned and has five owners, none of whom is a legal entity; • Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least company registration and operation or national 100 times income per capita. identification card - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade Time required to complete each procedure activities and does not handle products subject to a special tax regime, for example, (calendar days) liquor or tobacco. It does not use heavily polluting production processes. • Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the information amount of the annual lease for the office space is equivalent to the income per capita. • Each procedure starts on a separate day (2 procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits. - Has at least 10 and up to 50 employees one month after the commencement of • Procedures fully completed online are recorded operations, all of whom are domestic nationals. as ½ day - Has a company deed that is 10 pages long. • Procedure is considered completed once final document is received The owners: • No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are assumed to be 30 years old. Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record. income per capita) - Are married and the marriage is monogamous and registered with the authorities. - Where the answer differs according to the legal system applicable to the woman or • Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the • No professional fees unless services required by answer used will be the one that applies to the majority of the population. law or commonly used in practice Paid-in minimum capital (% of income per capita) • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Page 5
Doing Business 2019 Burundi Starting a Business - Burundi Standardized Company Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company Paid-in minimum capital requirement BIF 0 City Covered Bujumbura Indicator Burundi Sub-Saharan OECD high Best Regulatory Africa income Performance Procedure – Men (number) 3 7.4 4.9 1 (New Zealand) Time – Men (days) 4 23.3 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 10.7 44.4 3.1 0.0 (Slovenia) Procedure – Women (number) 3 7.6 4.9 1 (New Zealand) Time – Women (days) 4 23.4 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 10.7 44.4 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 0.0 10.0 8.6 0.0 (117 Economies) Figure – Starting a Business in Burundi and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 94.84: Burundi (Rank: 17) 93.27: France (Rank: 30) 90.24: Congo, Dem. Rep. (Rank: 62) 82.41: Kenya (Rank: 126) 78.52: Regional Average (Sub-Saharan Africa) 72.25: Uganda (Rank: 164) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6
Doing Business 2019 Burundi Figure – Starting a Business in Burundi – Procedure, Time and Cost Time (days) Cost (% of income per capita) 4 8 3.5 7 Cost (% of income per capita) 3 6 Time (days) 2.5 5 2 4 1.5 3 1 2 0.5 1 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 7
Doing Business 2019 Burundi Details – Starting a Business in Burundi – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit all documents to the one-stop shop (API) and obtain registration 1 day Cost included in certificate and the tax identification number procedure 2 Agency : Agence de la Promotion et de l'Investissement (API) 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 4. Application form for registration with the OBR to obtain the NIF 5. Photos of all partners 6. Copy of identities of all partners The applicant first deposits all these documents 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. 2 Pay the registration fees at the Commercial Bank cashier at API 1 day 140.000 BIF Agency : Representative of the Commercial Bank of Burundi (BANCOBU) in the one-stop-shop The applicant pays the registration fees at the Commercial Bank of Burundi (BANCOBU) located inside the one-stop shop. 3 Make a company seal 2 days BIF 20,000 Agency : Shops dealing with stamp making The company seal is not required by law but it is done in practice. Companies need it for their daily activities in order to authenticate their documents. Takes place simultaneously with previous procedure. Page 8
Doing Business 2019 Burundi Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2018. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the (number) construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances, licenses, permits and certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second • Submitting all required notifications and receiving largest business city. all necessary inspections - Is 100% domestically and privately owned; has five owners, none of whom is a • Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with sewerage the local association of architects or engineers. BuildCo is not assumed to have any • Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or completion topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse Time required to complete each procedure upon its completion. (calendar days) The warehouse: • Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery. - Will have two stories, both above ground, with a total constructed area of • Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the • Procedure is considered completed once final warehouse is valued at 50 times income per capita. document is received - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further • No prior contact with officials documentation or getting prior approvals from external agencies, these are counted Cost required to complete each procedure (% of as procedures. income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). • Official costs only, no bribes The water and sewerage connections: Building quality control index (0-15) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there • Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is • Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. • Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average • Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 • Liability and insurance regimes (0-2) gallons) a day. • Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 9
Doing Business 2019 Burundi Dealing with Construction Permits - Burundi Standardized Warehouse Estimated value of warehouse BIF 27,918,817.30 City Covered Bujumbura Indicator Burundi Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 15 14.7 12.7 None in 2017/18 Time (days) 70 145.7 153.1 None in 2017/18 Cost (% of warehouse value) 10.7 8.8 1.5 None in 2017/18 Building quality control index (0-15) 4.0 8.5 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Burundi and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 79.30: France (Rank: 19) 63.49: Kenya (Rank: 128) 58.93: Uganda (Rank: 145) 58.59: Regional Average (Sub-Saharan Africa) 55.14: Burundi (Rank: 162) 53.67: Congo, Dem. Rep. (Rank: 165) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Figure – Dealing with Construction Permits in Burundi – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 70 3 60 2.5 Cost (% of warehouse value) 50 2 Time (days) 40 1.5 30 1 20 0.5 10 0 0 1 *2 3 4 5 6 7 8 9 10 11 12 13 * 14 * 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 10
Doing Business 2019 Burundi Figure – Dealing with Construction Permits in Burundi and comparator economies – Measure of Quality 15 14.0 Index score 10 9.0 8.0 8.0 8.5 5 4.0 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Dealing with Construction Permits in Burundi – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a geotechnical study 14 days BIF 600,000 Agency : National Laboratory for Building Construction and Public Works (Laboratoire National Du Bâtiment et des Travaux Publics) 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. 2 Obtain a topographic survey of the land 2 days BIF 175,000 Agency : Private firm A topographic survey of the land is necessary for the accurate design of the building plans 3 Submit application for the building permit at the DGHU 1 day no charge Agency : Directorate of Urban Planning and Habitat (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) • 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 verify 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. 4 Pay permit fees and the construction tax at the Banque de la Republique du 1 day BIF 687,753 Burundi Agency : 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). 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). 5 Present proof of payment of the construction tax (taxe de batisse) to the 1 day no charge DGHU Agency : Directorate of Urban Planning and Habitat (DGHU) The proof of payment must be provided to the DGHU. Page 11
Doing Business 2019 Burundi 6 Obtain building permit 14 days no charge Agency : Directorate of Urban Planning and Habitat (DGHU) 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 their construction permit has been processed. It is the responsibility of the applicant to follow up. 7 Request certificate of conformity and proof of development 1 day no charge Agency : Directorate of Urban Planning and Habitat (DGHU) Once the construction is completed, the owner requests an ‘attestation de mise en valeur et de conformité’ from DGHU. This attestation validates that the construction has been built in accordance to the approved plans. To complete the attestation, DGHU will inspect the site of construction. The application for a certificate of conformity must be accompanied by a picture of the newly constructed building. 8 Receive inspection from DGHU 1 day no charge Agency : Directorate of Urban Planning and Habitat (DGHU) 9 Obtain certificate of conformity and proof of development 1 day no charge Agency : Directorate of Urban Planning and Habitat (DGHU) 10 Deposit request for the modification of the "proces verbal de bornage et 1 day no charge d'arpentage" at the Cadastre Agency : Direction National du 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 constructed building. A new “process verbal de bornage et d’arpentage" will be issued. This is required in order for the Land Registry to issue the property title. 11 Receive site inspection from the Cadastre 1 day no charge Agency : Direction National du Cadastre 12 Obtain updated "proces verbal de bornage et d'arpentage" from the 3 days no charge Cadastre Agency : Direction National du Cadastre 13 Request and receive updated property title from the land registry 30 days BIF 520,240 Agency : Department of Land Titles (Ministry of Justice) Obtain water connection 30 days BIF 500,000 14 Agency : REGIDESO Obtain sewage connection 15 days BIF 500,000 15 Agency : SETEMU Takes place simultaneously with previous procedure. Page 12
Doing Business 2019 Burundi Details – Dealing with Construction Permits in Burundi – Measure of Quality Answer Score Building quality control index (0-15) 4.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly specified in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 0.0 What types of inspections (if any) are required by law to be carried out during construction? No inspections 0.0 (0-2) are legally required during construction.. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction. Quality control after construction index (0-3) 2.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0 with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice; Final inspection occurs most of the time. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law or Decennial Insurance)? (0-1) to obtain insurance . Professional certifications index (0-4) 0.0 What are the qualification requirements for the professional responsible for verifying that the There are no 0.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) specific requirements. What are the qualification requirements for the professional who supervises the construction There are no 0.0 on the ground? (0-2) specific requirements. Page 13
Doing Business 2019 Burundi Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the (number) warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. • Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are receiving all necessary inspections also collected for the second largest business city. • Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an purchasing material for these works area with no physical constraints. For example, the property is not near a railway. - Is a new construction and is being connected to electricity for the first time. • Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters obtaining final supply (14,000 square feet). The plot of land on which it is built is 929 square meters Time required to complete each procedure (10,000 square feet). (calendar days) The electricity connection: • Is at least 1 calendar day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed • Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 • Does not include time spent gathering kilowatt (kW). information - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more • Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property Cost required to complete each procedure (% of income per capita) because the warehouse has access to a road. - Does not require work to install the internal wiring of the warehouse. This has • Official costs only, no bribes already been completed up to and including the customer’s service panel or • Value added tax excluded switchboard and the meter base. The reliability of supply and transparency of The monthly consumption: tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 • Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that • Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest • Regulatory monitoring of utilities’ performance supplier. (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation • Financial deterrents limiting outages (0–1) purposes only 30 days are used. • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor the ranking on the ease of getting electricity. Page 14
Doing Business 2019 Burundi Getting Electricity - Burundi Standardized Connection Price of electricity (US cents per kWh) 15.7 Name of utility Régie de Production et Distribution d'Eau et d'Electricité (Regideso) City Covered Bujumbura Indicator Burundi Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 5 5.2 4.5 3 (25 Economies) Time (days) 158 112.0 77.2 18 (3 Economies) Cost (% of income per capita) 13108.3 3456.5 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff 0 1.6 7.5 8.0 (27 Economies) index (0-8) Figure – Getting Electricity in Burundi and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 92.01: France (Rank: 14) 76.80: Kenya (Rank: 75) 49.00: Regional Average (Sub-Saharan Africa) 34.67: Congo, Dem. Rep. (Rank: 174) 34.09: Uganda (Rank: 175) 26.45: Burundi (Rank: 183) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Page 15
Doing Business 2019 Burundi Figure – Getting Electricity in Burundi – Procedure, Time and Cost Time (days) Cost (% of income per capita) 14000 140 12000 Cost (% of income per capita) 120 10000 100 Time (days) 8000 80 6000 60 4000 40 20 2000 0 0 1 *2 3 4 *5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Figure – Getting Electricity in Burundi and comparator economies – Measure of Quality 8 8 7 6 Index score 5 4 4 3 2 1.6 1 0 0 0 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Page 16
Doing Business 2019 Burundi Details – Getting Electricity in Burundi – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit application to REGIDESO and await and receive estimate 16 calendar days BIF 0 Agency : REGIDESO-Burundi As there are no online applications, the customer must apply in person at a REGIDESO customer service office by completing a form to request the connection. The customer has to provide copies of two documents: (i) the national identification card and (ii) the family composition certificate and specify the location of the warehouse. There is no need to notarize those documents. 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 for it. Once payment is made, REGIDESO will prepare a report of the works. This is an internal report listing all the material necessary for the connection. The report is then transmitted to the department in charge of the actual connection work. No internal inspection or 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. 2 Receive site inspection by REGIDESO and await feasibility study 1 calendar day BIF 0 Agency : REGIDESO-Burundi REGIDESO sends an engineer to the site to check the information and prepare a pro-forma if the connection is feasible and the energy required is available at that place. The pro-forma is sent to the Supervisor (Superieur hierarchique) for signature. The customer must be at the site for this visit in case the engineer of REGIDESO needs some clarification. At that time, REGIDESO measures the distance from the site of the future transformer to the electrical grid. 3 Purchase transformer 105 calendar days BIF 0 Agency : Market A transformer needs to be ordered to accommodate a 140kVA connection, to go from medium voltage to low voltage. Acquiring the transformer is the responsibility of the client. If the utility has a transformers in stock, the customer simply purchases one from the warehouse of the utility. There are shortages, however, on electricity material. Therefore, transformers typically need to be imported, which can take several months. The imported transformer needs to comply with some standards set by REGIDESO. Once the material is acquired, REGIDESO will have to do a quick conformity check, after which it will begin the external works. 4 Receive external works and meter installation by REGIDESO 37 calendar days BIF 73,193,616.92 Agency : REGIDESO-Burundi The utility does all the external connection works - including the design of the connection from the electrical grid to the transformer. The meter is installed before the actual connection takes place. The meter is rented from REGIDESO; a flat fee is paid for this. In the event that the meter breaks, it is replaced free of charge. 5 Sign supply contract with REGIDESO 1 calendar day BIF 0 Agency : REGIDESO-Burundi The client usually signs the supply contract with the utility at the end of the external connection works, but can sign the contract also during the works. Takes place simultaneously with previous procedure. Page 17
Doing Business 2019 Burundi Details – Getting Electricity in Burundi – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No exceed a certain cap? Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online http://www.areem.go v.bi/PdfFiles/nouvelle -grille-tarifaire.pdf Are customers notified of a change in tariff ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 18
Doing Business 2019 Burundi Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the immovable property (number) parties to the transaction, the property and the procedures are used. • Preregistration procedures (for example, The parties (buyer and seller): checking for liens, notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). - Are located in the periurban area of the economy’s largest business city. For 11 • Registration procedures in the economy's largest economies the data are also collected for the second largest business city. business city. - Are 100% domestically and privately owned. • Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals. title with municipality) - Perform general commercial activities. Time required to complete each procedure The property (fully owned by the seller): (calendar days) - Has a value of 50 times income per capita, which equals the sale price. • Does not include time spent gathering - Is fully owned by the seller. information - Has no mortgages attached and has been under the same ownership for the past • Each procedure starts on a separate day - 10 years. though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes. online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required. - Consists of land and a building. The land area is 557.4 square meters (6,000 • Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is document is received located on the land. The warehouse is 10 years old, is in good condition, has no • No prior contact with officials heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its Cost required to complete each procedure (% of entirety. property value) - Will not be subject to renovations or additional construction following the purchase. • Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of duties and taxes). any kind. - Will not be used for special purposes, and no special permits, such as for • Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural payments are excluded activities, are required. - Has no occupants, and no other party holds a legal interest in it. Quality of land administration index (0-30) • Reliability of infrastructure index (0-8) • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 19
Doing Business 2019 Burundi Registering Property - Burundi Indicator Burundi Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 5 6.2 4.7 1 (4 Economies) Time (days) 23 53.9 20.1 1 (New Zealand) Cost (% of property value) 3.1 7.6 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 4.5 8.8 23.0 None in 2017/18 Figure – Registering Property in Burundi and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 63.33: France (Rank: 96) 62.58: Burundi (Rank: 97) 55.97: Kenya (Rank: 122) 54.99: Uganda (Rank: 126) 52.62: Regional Average (Sub-Saharan Africa) 47.14: Congo, Dem. Rep. (Rank: 156) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Figure – Registering Property in Burundi – Procedure, Time and Cost Time (days) Cost (% of property value) 3.5 20 3 Cost (% of property value) 2.5 15 Time (days) 2 10 1.5 1 5 0.5 0 0 1 2 3 *4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 20
Doing Business 2019 Burundi Figure – Registering Property in Burundi and comparator economies – Measure of Quality 30 25 24.0 Index score 20 16.0 15 10.0 10.5 10 8.8 4.5 5 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Registering Property in Burundi – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Verify the identity of the seller and any encumbrances affecting the 2 days no charge property at the Land Registry Agency : Land Registry (Direction des Titres Fonciers) The Selling company must prove that it is the rightful owner of the property. It is common that the parties go to the Land Registry (Department des Titres Fonciers) to check if the property is indeed registered to the present owner. The buyer also requests proof that the property is not encumbered by mortgages, liens or other securities. 2 The notary drafts the sale and purchase agreement and it is signed by both 2 days BIF 29,000; (BIF parties 10,000 (drafting fee) Agency : Notary's Office + BIF 7000 (original) Once the notary has verified the identity and the judicial capacity of the parties as + BIF 3000/page (4 well as the possession of the original property title by the seller, the notary pages)) prepares the sale and purchase agreement which the parties sign at his presence. 3 The buyer requests to register the property transfer at the One-Stop Shop 12 days no charge Agency for the transfer of properties Agency : One-stop shop for the transfer of properties (Guichet unique de transfert de propriété) The buyer goes to the one-stop shop for transferring properties (Guichet unique de transfert de propriété) with the notarized transfer deed and the original property title. The one-stop shop includes the services of the Land Registry (Département des Titres Fonciers), the Municipality of Bujumbura, and the Burundi Revenue Authority (Office Burundais des Recettes, OBR). The following documents need to be submitted to the Land Registry to proceed with the property transfer registration: (1) Original title of the property. (2) Letter requesting transferring the property (Lettre de demande de transfer). (3) Notarized sale and purchase agreement. (4) Copies of statutes of both companies. (5) Copy of the 'procès-verbal de bornage'. The seller should have one in his possession. Both parties need to obtain a tax clearance certificate from the municipality proving that all city-level taxes are paid. The certificates are obtained from the same person from the representatives of the municipality at the one-stop shop for both parties and they can be obtained at the same time. Both parties must be present at the municipality to request tax clearance certificates on both. An expert is designated by the Land Registry to check whether the price in the transfer deed is correct. The OBR will also designate an expert to inspect the property. The objective of the inspection is to ensure that the price in the transfer deed is not underestimated or overestimated. After the inspections, the expert of the Land Registry writes a valuation report (rapport d'expertise) that is transmitted to the Director for signature. If for instance the price on the transfer deed is lower, the transaction tax will be paid based on the appraisal value provided by the expert from the Departement des Titres Fonciers and not on the agreed price between the parties. The expert of the OBR will also write a valuation report (rapport de contre- expertise). This report is necessary to issue tax clearance certificates for both parties (Attestation de non redevabilité delivree par les services des impots) showing that all taxes at the national level are paid and that neither the seller nor the buyer owes any debt to the OBR. According to the Decree N°121/VP2/038 of April 29, 2013 the preparation of the valuation reports cannot exceed 4 working days. Page 21
Doing Business 2019 Burundi 4 The Land Registry and the Burundi Revenue Authority inspect the property 1 day BIF 5,000 Agency : Land Registry (Direction des Titres Fonciers), Burundi Revenue Authority (Office Burundais de Recettes, OBR) Experts from the Land Registry and the OBR inspect the property at the same of the request to register the property transfer. 5 Obtain the new title from the Land Registry "Direction des Titres Fonciers" 7 days BIF 837,564.52; (3% Agency : One-stop shop for the transfer of properties (Guichet unique de property value (tax to transfert de propriété) change the Property After obtaining the tax clearance certificate from the OBR the buyer proceeds to Title to the buyer's pay the transfer tax to the OBR. The “Loi des Finances 2007” (article 35) adopted name)) on December 30, 2007 and implemented in January 2008, has abolished the property transfer tax of 6%. Article 36 of the same law, authorizes the Land Registry “Département des Titres Fonciers” to charge a 3% of the property value for all transactions. Once the payment is made the Registration Division proceeds to the creation of a new title for the buyer. Takes place simultaneously with previous procedure. Page 22
Doing Business 2019 Burundi Details – Registering Property in Burundi – Measure of Quality Answer Score Reliability of infrastructure index (0-8) 1.0 What is the institution in charge of immovable property registration? Direction des Titres Fonciers In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0 and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Direction du Cadastre National In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0 or mapping agency kept in a single database, in different but linked databases or in separate databases databases? Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0 same identification number for properties? Transparency of information index (0–6) 0.0 Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0 property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction made Yes, in person 0.0 publicly available–and if so, how? Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0 immovable property registration in the largest business city made publicly available–and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a legally No 0.0 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2017: Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available— No 0.0 and if so, how? Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 specific time frame—and if so, how does it communicate the service standard? Page 23
Doing Business 2019 Burundi Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 3.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private guarantee? No 0.0 Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a property Yes 0.5 transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Does the legal system require verification of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a property Le Tribunal de worth 50 times gross national income (GNI) per capita and located in the largest business Grande Instance city, what court would be in charge of the case in the first instance? en Mairie de Bujumbura How long does it take on average to obtain a decision from the first-instance court for such a Between 2 and 3 1.0 case (without appeal)? years Are there any statistics on the number of land disputes in the first instance? No 0.0 Number of land disputes in the largest business city in 2017: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes Do married men and married women have equal ownership rights to property? Yes 0.0 Page 24
You can also read