Posted by: africanpressorganization | 20 January 2009

Madagascar / Investment Climate Facility for Africa provides boost to Madagascar’s business environment / ICF partners with Government to improve business licensing systems

 

 


 

 

Madagascar / Investment Climate Facility for Africa provides boost to Madagascar’s business environment / ICF partners with Government to improve business licensing systems

 

ANTANANARIVO, Madagascar, January 20, 2009/African Press Organization (APO)/ — The Investment Climate Facility for Africa (ICF) has today signed an agreement to help modernise the Republic of Madagascar’s business licencing system in a move to help the country fulfil its investment potential.

 

The Government of Madagascar will work in partnership with the ICF to deliver a series of changes to the country’s business licensing systems in a bid to deliver a thirty per cent reduction in the time and expense currently required to adhere to the country’s existing licensing regulations.

 

Efficient business licencing is an essential pre-requisite for a healthy investment climate, ensuring that the size and scope of businesses are accurately registered. A preliminary analysis identified 202 business licenses in Madagascar and a current registration process that takes five procedures, seven days and 11% of GDI per capita to start a business.

 

The ICF’s objective is to reduce the administrative burden, which acts as a key deterrent to formal business licensing, through the first-ever audit of existing business licenses in Madagascar, the establishment of an electronic registry for licenses, and the design of screening mechanisms to support new regulation. The Economic Development Board of Madagascar (EDBM) has been empowered to act as a Regulatory Reform Committee.

 

The ICF’s Chief Executive Officer, Mr Omari Issa, said: “Effective and streamlined business licensing procedures are essential to create formalised, efficient and lawful business environments. We’re delighted to be working with the Government of Madagascar to deliver long-lasting improvements to its licensing system which we believe

 

will have real and tangible benefits for investors, businesses, Government and civil society. We also hope we will be able to take the learnings acquired in Madagascar during the course of this pilot project and implement them in other African countries so that Madagascar’s positive example can be replicated elsewhere.”

 

H.E. Ivohasina Fizara Razafimahefa, Minister of Economy, Trade and Industry and Chairman of Economic Development Board of Madagascar (EDBM) said: “Improving our country’s business licensing systems is a key prerequisite for building an enhanced business environment that will stimulate trade and enterprise and deliver long-term economic and social progress for Madagascar. We are delighted that the ICF is supporting us on the project; the insight, expertise and experience that the ICF brings to this project means we are confident we will deliver workable and realistic changes to our systems that will set a new benchmark for the rest of Africa.”

 

The project announcement follows a recent World Bank report in which Madagascar jumped seven places (from 151 to 144th place) in an Ease of Doing Business ranking.

 

The ICF is the only pan-African body, based in Africa, explicitly and exclusively focused on improving the continent’s investment climate. It works with receptive African governments to systematically remove constraints to investment in order to make the continent an even better place to do business. The ICF is currently active in Burkina Faso, Lesotho, Liberia, Madagascar, Rwanda, Senegal, Sierra Leone, Tanzania and Zambia, as well as on a number of pan-African projects.

 

 

 

SOURCE : Investment Climate Facility for Africa (ICF)


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