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Doing Business In South Africa: New World Bank Report Lets You Compare Cities

Doing Business In South Africa: New World Bank Report Lets You Compare Cities

When it comes to doing business in South Africa, no one city outperforms another overall in the areas benchmarked in a new World Bank report released today.

The World Bank’s Doing Business in South Africa 2015 report benchmarks nine of the country’s largest urban areas and four ports across six aspects of doing business: starting a business, dealing with construction permits, getting electricity, registering property, enforcing contracts and trading across borders.

“The report finds that no city outperforms the others in all areas benchmarked,” World Bank said in a press release.

The World Bank’s Doing Business report measured business regulations and their enforcement in 189 economies. This is the first time the World Bank has done a report comparing business regulations affecting domestic companies in South African metropolitan areas, IOL reports.

Trimor Mici, a private sector development specialist with World Bank, said in a CNBC video interview Cape Town was most conducive to doing business when it comes to dealing with construction permits.

“We see Cape Town leads the indicator,” Mici told CNBC. “The municipality is very efficient in using internal electronic communication platforms that connect municipality departments with each other to issue pre-construction clearances but also to review building permit applications and provide comments from each department.”

Taken individually, different cities in South Africa are doing better than others when it comes to obstacles facing entrepreneurs, the report said.

Ekurhuleni, Johannesburg and Tshwane lead in starting a business. Cape Town leads in dealing with construction permits. Mangaung is No. 1 for getting electricity and enforcing contracts, and Johannesburg is tops for registering property, according to the World Bank report.

The nine cities covered by the report include Buffalo City (a metropolitan area that includes East London), Cape Town, Ekurhuleni (East Rand region); eThekwini (Durban), Johannesburg, Mangaung (Bloemfontein and surrounding towns in the Free State province), Msunduzi (Pietermaritzburg municipality in KwaZulu-Natal), Nelson Mandela Bay (the Port Elizabeth area) and Tshwane (Pretoria). The four ports are Cape Town, Durban, Ngqura (South Africa’s newest port, 20 kilometers North of Port Elizabeth), and Port Elizabeth.

According to the report, cities in South Africa can learn and emulate each other based on what’s working.

“Local reforms could not only improve the business environment of one location as compared to another within South Africa, but also make a significant difference on the global scale,” World Bank said in a statement. “If a South African city was to adopt the good practices found across the nine cities in dealing with construction permits, getting electricity and enforcing contracts, it would surpass the average performance of…high-income economies…”

Mcebisi Jonas, South Africa’s Deputy Minister of Finance, told CNBC “Part of what we need to do moving forward is peer learning.”