This archive report was first published on 21 July 2021.
With the East African Community (EAC) facilitating the movement of people and capital across the region, starting a business in East Africa has become increasingly accessible. The EAC comprises five countries: Kenya, Uganda, Tanzania, Rwanda, and Burundi.
However, the ease of starting a business varies significantly across these countries. According to the World Bank's Ease of Doing Business Index, Rwanda stands out as the most business-friendly destination, ranking 35th globally.
One of the key factors contributing to Rwanda's ease of doing business is its streamlined registration process. The Rwanda Development Board offers an electronic signature that can be obtained in less than a day, which is used to log into the system for registration. This is followed by online registration, which is free and takes a day to complete.
Other countries in the region, such as Burundi and Kenya, have more complex registration processes. Burundi ranks second in terms of ease of starting a business, but its overall ease of doing business ranking is significantly lower at 166. Kenya ranks third, with a registration process that involves reserving a name, applying for company registration, and obtaining various permits.
Tanzania and Uganda trail behind, with Tanzania ranking 162nd and Uganda ranking 169th in the ease of starting a business. These countries have more stringent regulations and longer registration processes, making it harder for entrepreneurs to start and operate businesses.
