Administrative Barriers to Foreign Investment : Reducing Red Tape in Africa

by Emery, James J.; Spence, Melvin T.; Wells, Louis T.; Buehrer, Timothy S.

• ISBN13: 9780821346297
• ISBN10: 0821346296
• Format: Paperback
• Copyright: 1999-12-01
• Publisher: World Bank

Summary

When at every turn, they find a new twist, or a new requirement, foreign investors in Africa can be easily discouraged from setting up businesses. Although many African governments have liberalized and reformed investment policies and promote themselves as investment sites, the reality facing investors differs greatly. To help change the "lack of investor response" to Africa's enticements, this book examines the administrative constraints to investment in several African countries. It presents the experience that confronts investors when they set up a company. The case histories demonstrate how the morass of licenses, approvals, permits, and other requirements that result in undue delays and unforeseen costs encourage bribery and corruption and foster an environment of pervasive uncertainty for all investors. The chapters are divided into four areas, which correspond roughly to the chronological process of investment. They are:- general approvals, licenses, and registrations;- specialized approvals;- requirements to gain access to land, site development, and utility connections; and- operational requirements.This publication will be of interest to government officials, academics, and investment firms.

Table of Contents

Figures and Tables	vii
Preface	ix
ADMINISTRATIVE BARRIERS TO INVESTMENT IN AFRICA	1	(88)
James J. Emery
Melvin T. Spence, Jr.
Acknowledgments	2	(1)
Acronyms	2	(3)
Executive Summary	3	(2)
Methodology	5	(2)
Conclusion: The Red Tape Analysis	7	(2)
Introduction	9	(18)
Liberalization and Reform	10	(3)
The Lack of Investor Response	13	(2)
Administrative Barriers to Investment	15	(3)
The Analytical Approach	18	(4)
Antecedents	22	(2)
Administrative Constraints in Sub-Saharan Africa	24	(3)
General Approvals, Licenses, and Registrations	27	(14)
Company Registration	28	(1)
Foreign Investment Registration	29	(2)
Access to Investment Incentives	31	(1)
Business Licenses	32	(1)
Expatriate Work and Residence Permits	33	(2)
Tax Registration and Administration	35	(1)
Other Licenses and Registrations	36	(2)
Conclusion	38	(3)
Specialized Approvals	41	(14)
Industry	42	(2)
Fisheries	44	(1)
Forestry	45	(3)
Tourism	48	(4)
Conclusion	52	(3)
Requirements to Gain Access to Land, Site Development, and Utility Connections	55	(16)
Access to Land	56	(1)
Construction Permits	57	(1)
Utilities	57	(11)
Postal Services	68	(1)
Conclusion	68	(3)
Operational Requirements	71	(12)
Import/Export Procedures	72	(1)
Foreign Exchange	73	(1)
Labor and Social Security	73	(4)
Conclusion	77	(6)
Conclusions	83	(6)
Origins of Excessive Red Tape	83	(1)
Recommendations	84	(4)
Conclusion	88	(1)
Notes	89	(4)
References	93