Management Of Business Registration And Licensing – CAG Report

According to a study conducted by World Bank1 on easy of doing business, 42 economies world-wide made it easier to start a business. Economies with smart business registration have a higher entry rate as well as greater business density. In the past 7 years, Doing Business report recorded 296 business registration reforms in 140 economies. As a result of these reforms, the average time to start a company fell from 49 to 34 days, and the average cost from 86% of income per capital to 41%. In East Africa, 9 reforms were conducted in 4 economies (Rwanda, Kenya, Tanzania, and Uganda) for the past 7 years. In the region, the average number of procedures was reduced from 13 to 11, the number of days was reduced from 34 to 25 days and the cost was reduced from 142% of per capita income to 60%.

Despite economic reforms and various interventions sustained since the mid-eighties, there are still residual impediments such as bureaucratic procedures that lead to high transaction costs. Officials delayed to update applications and customers stayed for a long time without response from the agency. This discourages the inflow of foreign and domestic investment and hinders efficient trade sector performance.

The main audited entities were BRELA and the Ministry of Investment, Industry and Trade. Specifically, the Audit focused on assessing whether BRELA effectively and efficiently managed to deliver its core services of Business Registrations and Licensing (company registration, Business name registration and Industrial and Business Licensing); and whether the Ministry of Investment, Industry and Trade and BRELA effectively monitor the implementation of registrations and licensing activities.

The Audit covered a period of 2018/19-2020/21. The Audit evidences were gathered through document reviews, interviews held with relevant officials and physical observations.