ZAMBIA has dropped six places on the World Bank’s ease of doing business 2016 index from 91 in 2015 to 96 for 2016 out of 189 world economies, a report has indicated.
According to the report, Zambia’s current economic challenges such as load shedding and the high cost of doing business at border posts contributed to the low ranking.
The World Bank report shows that according to data collected by Doing Business, accessing electricity in Zambia required six procedures, took 117 days and cost 643.8 percent of income per capital.
In accessing electricity, the report has ranked Zambia on 123 for the 2016 – representing 59.13 percent from 120 in 2015.
Zambia’s increase in the documentary and border compliance time for both exporting and importing procedures also contributed to the adjustment of the economic ranking.
The report shows that Zambia moved all clearance authority to a central processing centre at the initial stage of implementing a web-based customs platform.
The World Bank has further ranked Zambia’s documentary and border compliance at 153 in the 2016 report from 110 in 2015.
According to the report, Zambia however performed well in other sectors such as making it easier to pay taxes for companies.
The report shows that Zambia made paying taxes easier for companies by implementing electronic filing and payment for Value Added Tax (VAT).
At the same time, the report says that Zambia made paying taxes more costly by increasing the property transfer tax rate.
In 2015, Zambia also made paying taxes easier for companies by abolishing the medical levy and by introducing an online system for filing corporate income tax, VAT and some labour taxes.
Zambia has therefore been ranked 46 for 2016 representing 81.66 percent, from 81 in 2015 representing 74.52 percent. The World Bank also acknowledged Zambia’s improved access to credit information by starting to exchange credit information with retailers and utilities.
On access to credit, Zambia has been ranked 16th for the 2016 report from 24th in 2015.