I was reading a CNBC report lately on the world’s toughest countries to do business in. Based on the World Bank’s report, “Doing Business 2015”, the report ranks 189 countries for ease of doing business using criteria such as ‘getting electricity’ + ‘getting credit’. Here are the 10 worst countries in order:
1. Eritrea
+ GNI of just $490 per capita
+ described by the World Bank as, “one of the least developed countries in the world”
+ roughly two-thirds of Eritreans live in rural areas
+ has been criticized for its alleged extrajudicial killings and torture and lack of openness
+ came joint last for dealing with construction permits, joint last for access to credit, and 176th for registering property
2. Libya
+ three years after the overthrow and death of Colonel Muammar Gaddafi, oil and gas-rich Libya is still struggling for stability
+ the country ranked joint-last for handling construction permits, joint-last for registering property and second-last for protecting minority investors
+ rival militia are still engaged in fierce fighting in Libya
+ this summer the security situation deteriorated further
+ the United Nations says that over 100,000 Libyans are displaced as a result of the current fighting
3. Central African Republic
+ since gaining independence from France in 1960, the Central African Republic (CAR) has struggled with dictatorships, coups and conflict in equal measure
+ the country’s most recent civil war saw thousands die
+ its economy shrunk by a vast 36 per cent in 2013, according to the World Bank
+ the CAR ranks fourth from bottom in terms of access to electricity and third from bottom for ease of starting a business
4. South Sudan
+ founded in 2011 after a referendum on independence from Sudan, South Sudan is still unstable
+ low ranking—3rd worst in the world—in the cross-border trading category
+ accessing electricity and registering property are also problematic for entrepreneurs, with South Sudan coming respectively 179th and 180th on these counts
+ according to the U.S. Department of State, “Most small South Sudanese businesses operate in the informal economy, where labor laws and regulations are widely ignored”
5. Chad
+ one of the world’s poorest countries
+ fifth worst in the world for launching a business
+ eighth worst for cross-border trading
6. DRC / Democratic Republic of Congo
+ DRC has been stricken by years of civil war
+ According to the United Nations, around 2.7 million people are “internally displaced” in the country, due to ongoing armed conflict in its east
+ The DRC remains one of the worst countries in the world to do business, ranking joint worst for resolving insolvency and also scoring poorly for access to electricity and enforcing contracts
7. Afghanistan
+ suffering the aftereffects of 13 years of bloody and sustained conflict
+ country ranked surprisingly high (24th) for ease of starting a business
+ rated worst in the world for protecting minority investors
+ scored poorly for cross-border trading and enforcing contracts
+ July 2014 survey by the Afghanistan Chamber of Commerce & Industries found that, “The most important factor for business development is considered to be security; it is followed by lack of market and demand, poor infrastructure, administrative burdens and lack of access to finance”
8. Venezuela
+ gross national income of $12,550
+ Venezuela’s income level is described by the World Bank as “upper middle”
+ socialist country is rich in natural resources including natural gas, gold and diamonds
+ its crude oil reserves are estimated at around 298 billion barrels
9. Angola
+ a former Portuguese colony
+ one of the Africa’s biggest producers of oil
+ one of the poorest countries on the planet
+ gross national income of $5,010
+ life expectancy of just 51
+ difficult for business owners to enforce contracts and access credit
10. Haiti
+ devastated by a huge earthquake in Jan 2010
+ one of the world’s poorest countries
+ difficult for business owners to access credit or register property
+ gross national income per capita of $810 (compared with US which is $53, 670)
+ in 2011 the Inter-American Investment Corporation and the Spanish government established a joint development fund designed to increase the availability of loans and reduce borrowing costs for Haitian small- and-medium-sized companies. This is set to run for 12 years
