Indices can mislead on Africa business costs
Subject Outlook for business cost rankings in Africa. Significance The World Bank's 2015 Doing Business report identifies five sub-Saharan African (SSA) countries -- Benin, the Democratic Republic of Congo (DRC), Ivory Coast, Senegal and Togo -- as among the ten "top improvers" globally for ease of doing business. However, such assessments often suffer from data inaccuracies, overestimate the relevance of formal rules, and miss informal costs such as those caused by graft. Impacts Rankings on SSA cities' 'livability' could influence how employers determine hardship allowances for expatriate workers. First-mover advantages, such as French firms operating in West Africa, will partially help to offset burdensome regulations. Internet-based business will benefit from PayPal's entry into Nigeria, which may improve online payments security. Import restrictions by some states to help buttress foreign exchange reserves will cause shortages of some consumer goods.