The article concerns the question – Why Set Up A Business In Africa. According to of the World Bank’s Doing Business Reports, setting up and doing business in Africa is becoming much easier in the recent years. Twenty-four countries in Africa have implemented 49 reforms in the field of employment and business. Among these countries are Kenya and Ghana, which even belong to the top reformers across the globe.
These reforms have made it easier for to set up a business in Africa. Furthermore, it has strengthened the property rights making it conducive for anyone, even those who are not from Africa, to create a small or a big business in Africa. These reforms have also reduced the cost of tax, which is a burden to many business entrepreneurs. Most important of all, the reforms have now broadened and improved the operational scope of a businessman in Africa.
Here are some of the reforms that were made in the recent years in various countries in Africa. In Ghana, the business registration agencies have been made more efficient allowing those wishing to start up a business to finish the registration process in mere 42 days. In Kenya, a reform program for business licenses has been introduced making it easier for entrepreneurs to obtain building permits.
Tanzania has reduced fees for starting businesses by 47 %, which is great news to those planning to open up a business in this country. Madagascar has reduced the entire registration process to just seven days by cancelling some of the steps involved. These are but a few of the countries that have made reforms over the years.
For foreigners planning to start a business in a country in Africa, no permits are required apart from the usual work permit and business permit. Like most of the normal method of setting up a business, there are administrative procedures that needs completed first. This following is a quick guide if for those who are planning to set up a business in Africa.
After the completion of the work and business permit, the next step is to register the company. A company built in Africa must be registered after 21 days since it started its operations. It should be registered in the South African Registrar of Companies, which is found in Pretoria.
After this, the next is the registration in the following fields.
– Registration with the Department of Labor
– Registration with the Local Authority
– Registration with the Cape Metropolitan Council or District Council
These are just the main things that should be completed first to ensure that a foreign company will be allowed to operate legally in Africa.
With this, setting up a business in Africa is now very easy. There are many advantages compared to setting up a business in your own country that is why entrepreneurs are now focusing their attention on this newfound business haven. If you are looking for a place to start and grow your own business, you can opt for a country in Africa because of these advantages.