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Doing business in Sudan

 

Doing business in Sudan

The Doing Business 2020 Index, a publication of the World Bank Group, is the latest in a series of annual studies that measure regulations that improve or restrict business. The index presents quantitative indicators on company regulations and the protection of property rights which are compared in 190 economies. Sudan ranks 171 out of 190, with a total score of 44.8 on a scale of 0 to 100.

The time required for an SME to start a business and operate formally in Sudan is about 34 days, with a total cost of 17.8% of income per capita. The most time-consuming procedure is to register with national labor authorities for a 14-day waiting period. Record a property of a building or land already registered is a quick process, but presents a general problem of transparency and a lack of information. Despite this, only 11 days are needed for registration to local authorities, about half of the regional average.

The construction of a commercial building takes about 255 days to complete. The cost, calculated as a percentage of the value of the building, is 2.6%. Despite some gaps, due to the lack of statutory insurance, the final score of the indicator suggests that Sudan is above the sub-Saharan regional average. To get a permanent electrical connection to a newly built warehouse it takes about 70 days. However, there are network management problems due to frequent power outages. The company in charge of customer service is the Sudanese Electricity Distribution Company (SEDC), which supplies the necessary transformers, cables and tools. In addition, you can pay your bill online.

The recovery rate for a creditor following a restructuring, liquidation or enforcement of the debt is 30.2%, as a percentage of US cents. There are a number of issues concerning the recovery of debts: both creditors and debtors prefer liquidation to a full trial, as the latter often find it difficult to pay their accrued debts; Moreover, the insolvency recovery platform does not have a strong legal basis, which allows all parties to bypass the typical procedure and agree among themselves.

The time necessary for the resolution of a commercial dispute, through a judgment of first instance by a local court, is about 2 years, the same period necessary for an insolvency proceeding with the involvement of local legal entities. On a scale of 0 to 18, that assesses dispute resolution capacity, Sudan ranks at a score of 4, due to a lack of small courts for “fast-track” resolutions, due to the absence of a digital platform and the shortage of judges with the appropriate competencies. On the other hand, alternative dispute resolutions are very frequent in Sudan, specifically through the conciliation of the parties with the help of a guarantor.

For further information, see: Doing Business 2020 for Sudan.


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