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Property Rights The constitution provides for an independent judiciary, but the legal system is inefficient, and the executive branch influences judicial actions. Implementation of legislation protecting copyright and related rights, trademarks, patents, and integrated circuits is inconsistent, and enforcement remains spotty. Recourse to the judicial system is discouraged by time-consuming procedures and Corruption Despite some progress, the governments effort to root out corruption in the customs services remains ongoing. Business Freedom With over 70 percent of the unemployed younger than 30, youth unemployment remains persistently high. Recent reforms include new regulations that streamline the process for licenses required in conducting business. However, an inefficient entrepreneurial environment and rigid labor market impede broader economic development and job creation. Monetary Freedom The government uses price ceilings, tariffs, and redistribution schemes to control prices. The trade weighted tariff rate is 8.6 percent, with overall trade activity hampered by numerous nontariff barriers. Trade Freedom Investment Freedom Algeria places many restrictions on foreign investment. A recently implemented investment law stipulates that a majority share of new foreign investments must be domestically owned. The level of financial intermediation through banks remains low, and about 16 percent of loans are categorized as non-performing. Financial Freedom


Labor Market


The formal labor market is underdeveloped.

Corruption is widespread among government officials at all levels. Investigations and

Despite the recent implementation of more streamlined business start-up procedures,

Key sectors remain governmentowned, and price controls

Tariff and nontariff barriers to trade persist. In 2010, a new government

Foreign investment has been hindered by requirements for government approval in many

Only about 10 percent of the population has access to banking. Development of

the appearance of extensive executive influence on outcomes. Legal fees and property registration can be prohibitively expensive, and the overall protection of property rights is weak.

prosecutions of government officials are practically nonexistent.

burdensome regulations continue to hinder private-sector development. Overall, the regulatory system lacks transparency and clarity, and regulations are enforced inconsistently.

are pervasive in many sectors, including fuel and electricity.

procurement law increased local content requirements.


capital markets has not progressed. After years of delay, the opening of the Luanda Stock Exchange has been further postponed.


The agriculture sector accounts for nearly 70 percent of the workforce. Outmoded employment regulations hinder overall job creation and productivity growth.


Botswanas employment regulations are moderately

Benins legal system is weak and subject to corruption. Businesses and other litigants routinely complain that corruption is particularly widespread at the trial court level and in administrative hearings. There are no separate commercial courts, and backlogs of civil cases cause long delays. The legal system is sufficient to enforce

Despite several high-profile prosecutions, government corruption continues to impede development and deter investment.

The overall entrepreneurial environment remains burdensome. Bureaucratic procedures are not streamlined and lack transparency. Obtaining necessary business licenses is timeconsuming and costly, despite some progress.

Inflation has been modest, with government price controls continuing.

High tariffs and numerous non-tariff restrictions prevent dynamic growth in trade.

Foreign investment is officially encouraged, but financial transfers or outward remittances can be restricted.

The banking sector is predominantly private, and foreign ownership is allowed, but despite the noticeable development of microfinance institutions, overall access to credit remains low.

Botswana remains the least corrupt country on the

A more streamlined licensing process has

Most prices are set by the market, but the state

The trade weighted tariff rate is 5.2 percent.

Foreign investment has played a significant role

Botswanas banking sector is one of Africas most advanced.

flexible, with the non-salary cost of hiring a worker relatively low.


A formal labor market has not been fully developed, but some modernization measures have been implemented.


Rigid employment regulations and

secure commercial dealings, although a growing backlog of cases prevents timely trials. Protection of intellectual property rights has improved significantly. The judicial system is weak. The executive has extensive appointment and other judicial powers. Systemic weaknesses include arbitrary removal of judges, outdated legal codes, too few courts, a lack of financial and human resources, and excessive legal costs. Private property is subject to

African continent. The major corruption investigation body, the Directorate on Corruption and Economic Crimes (DCEC), is well regarded.

eased business startup procedures. However, the overall pace of reform has slowed.

maintains pricing policies and can influence prices through numerous state-owned enterprises and service providers.

Import licensing and other nontariff barriers add to the cost of trade. Investment regulations are transparent though slow in execution.

in the privatization of state-owned enterprises.

The government has abolished exchange controls, and the Botswana Stock Exchange is growing.

Corruption is pervasive, partly because of the limited enforcement powers of anticorruption institutions and the lack of an effective separation of powers.

Reforms to reduce red tape and streamline the regulatory process have been put into practice. Despite mixed progress, these measures have helped to enhance the regulatory environment and maintain the momentum for reform.

The state maintains price supports for cotton and influences other prices through the public sector.

The trade weighted tariff rate is 8.8 percent, with lingering non-tariff barriers increasing the cost of trade.

Although investment laws can be enforced unevenly, they guarantee equal treatment of foreign and domestic investors. The government has pursued banking liberalization and restructuring, limiting its direct participation.

However, financial firms still lack the capacity to provide a full range of modern services for financing.

Corruption is present in every area of life. It is

Despite steps taken to enhance

The government influences

The trade regime is relatively

Foreign and domestic investments

The underdeveloped financial sector

an underdeveloped labor market hinder productivity growth and job creation.


The labor market remains underdeveloped.

government expropriation and armed banditry. The constitution guarantees the independence of the judiciary, but judges are appointed by the executive branch and subject to political pressure. Protection of property rights remains weak due to lingering corruption and an inefficient judicial system. The court system is vulnerable to political interference and long delays. Trademarks and copyrights are routinely violated, and software piracy is widespread.

most pervasive in government procurement, where the purchase and sale of government property frequently lead to allegations of bribery and cronyism.

regulatory efficiency, the overall business environment remains severely constrained by burdensome bureaucracy and the lack of transparency

prices through state-owned enterprises, subsidies, and agriculturesupport programs.

open, but inadequate administrative capacity and poor infrastructure add to the cost of trade.

receive equal treatment, and foreign investment generally is not subject to government screening.

provides a very limited range of services. The public sector dominates commercial banking, and many people rely on microcredit or informal lending.

Despite anticorruption and goodgovernance initiatives, legal loopholes and legislative gaps allowing corruption have not been eliminated.

Cameroon has made starting a business easier by simplifying requirements and reducing fees, but the overall entrepreneurial environment remains hampered by inefficiency and a lack of transparency.

Inflation has been modest, but the countrys tendency to rely on antimarket tools was underscored early in 2011 by creation of a new staterun agency to regulate the price and supply of basic goods.

The trade weighted average tariff rate is quite high at 15 percent, with non-tariff barriers further increasing the cost of trade.

The investment regime is constrained by heavy bureaucracy and a lack of transparency. New investments may be subject to government approval.

The cost of financing remains high, and access to credit is very limited in rural areas. Longterm loans are hard to obtain, and the nonbanking financial sector remains marginal.


Employment regulations remain rigid despite recent reform efforts.

Private property is fairly well protected. The constitutional provision for an independent judiciary is generally respected, but the judicial system is inefficient, with the case backlog resulting in delays.


The underdeveloped labor market continues to hinder employment growth.

Protection of property rights is weak. Most of the countrys territory is not under central government control, and there is a high risk of renewed violence in rebelcontrolled areas. The judiciary is subject to executive interference.

The business environment has gradually become more efficient. The process for launching a business is more streamlined, and licensing requirements are less burdensome. Modern and efficient bankruptcy procedures are not fully developed. Because of inefficient administration, the courts barely function. Misappropriation of public funds and corruption are widespread.

The market determines most prices, and inflation has been modest.

Foreign investment is officially encouraged and receives the same treatment as domestic investment. Most sectors are open, but all foreign investment requires prior authorization.

The trade weighted tariff is 11.6 percent. Nontariff barriers include restrictions on services market access.

Foreign investment is officially encouraged and receives the same treatment as domestic investment. Most sectors are open, but all foreign investment requires prior authorization.

With credit generally allocated on market terms, small and medium-size enterprises have increasingly adequate access to financing.

Establishing a business has become less timeconsuming, but other regulatory requirements remain burdensome and opaque, increasing the cost of conducting business. The minimum capital required to start a business is

The government influences most prices through the public sector, subsidies, and price controls.

The trade weighted tariff rate is 13.6 percent. Myriad nontariff barriers add to the cost of trade.

Foreign and domestic investors are treated equally, and all sectors of the economy, including real estate, are open to foreign investment, typically without screening.

The financial system is underdeveloped, and access to financing for businesses remains very limited. Less than 1 percent of the population has access to banking services.


With informal labor activity widespread, outmoded employment regulations hinder job creation and productivity growth.


Much of the workforce is employed in the small retail services sector, and informal labor activity is widespread.

Protection of private property is weak, and the rule of law remains uneven across the country. The constitution guarantees judicial independence, but most key judicial officials are named by the president and assumed to be subject to political influence. The judicial system is ineffective, contracts are weakly enforced, and courts are relatively inexperienced in commercial litigation. The government lacks the capacity to

Despite a Ministry of Morality that conducts anticorruption seminars for government employees, corruption exists at all levels of government.

over four times average annual income. Starting a company takes longer than the world average of 30 days, and the cost of establishing a business remains more than twice the level of average annual income.

Most prices are determined in the market, but the government influences prices through state-owned enterprises and the regulation of key goods.

The trade weighted tariff rate is 14.7 percent, hindering dynamic growth in trade. Myriad non-tariff barriers further weaken trade freedom.

Although Chad allows foreign ownership and provides equal treatment to foreign investors, bureaucratic requirements and restrictions continue to be serious impediments to new investment.

The financial sector is underdeveloped, with domestic credit equivalent to less than 1 percent of GDP.

The political environment remains fragile in the wake of the transfer of power following the December 2010 presidential election, which aggravated perceptions of corruption.

The overall freedom to establish and run private enterprises is constrained by the inefficient regulatory environment. Although starting a business takes slightly less than the world

Inflation has been modest.

The trade weighted tariff rate is 7.8 percent, with myriad non-tariff barriers severely undermining trade freedom.

Nontransparent investment regulations and underdeveloped markets inhibit investment.

Despite some modernization and restructuring before the 2011 crisis, the banking sector lacks the capacity to support a more vibrant private sector. The government has sold its shares in

enforce intellectual property rights laws. Officials often engage in corrupt practices with impunity.


The agricultural sector is the largest source of employment, and formal-sector employment is negligible. Inflation has been high,

Despite a recently adopted constitution, protection of property rights remains dependent on a dysfunctional public administration. Application of the complex legal code is selective. Human rights abuses, fighting, and banditry deter economic activity and foreign businesses.

During more than 30 years of rule, the Mobutu regime created a culture of corruption that has been difficult to root out of the private and public environments.

average of 30 days, the associated minimum capital requirement remains over twice the annual average income. Reform measures in recent years have streamlined the procedures to establish a business, but business startups remain discouraged by other institutional deficiencies such as pervasive corruption and very limited access to credit.

smaller banks but maintains holdings in several larger institutions.

prices are still controlled and regulated by the government.

The trade weighted tariff rate is quite high at 11 percent, with other non-tariff restrictions further constraining dynamic growth in trade.

The investment regime, hampered by government controls, is poor and lacks transparency.

Financial intermediation remains minimal, although more commercial banks opened in 2009 along with some new branches. Credit to the private sector is equivalent to less than 5 percent of GDP.



A modern labor market has not been fully developed.

Protection of private property is weak. Courts are frequently overburdened, and enforcement of contracts can be timeconsuming. Trials and judicial proceedings are subject to corruption. Political manipulation undermines the judicial systems credibility. Commercial and bankruptcy laws are not applied consistently.

In the absence of effective anticorruption measures, prosecution and punishment for corruption have been rare.

The regulatory systems lack of transparency and clarity injects considerable uncertainty into entrepreneurial decisionmaking. Launching a business remains timeconsuming, with the minimum capital requirement amounting to over four times annual average income.

Inflationary pressures continue, with a range of goods and services subject to government price controls.

Djiboutis trade weighted tariff rate is quite high at 15.2 percent, with other complex nontariff barriers further constraining trade freedom.

Although no major laws discriminate against foreign investment, the investment regime lacks transparency and remains unfavorable to dynamic growth.

The banking sector is expanding as more banks, particularly foreign banks, have entered the market and increased competition in recent years.


In the absence of a well-functioning labor market, informal labor activity persists in many sectors. The rule of law has been unstable across the country, and the independence of the judicial Corruption continues to erode the foundations of economic freedom. Previous regulatory reforms, including establishment of a one-stop shop for investment, Monetary stability is weak. Egypt has opened its markets to global trade and investment, but non-tariff barriers The investment regime has been stable, but flows have slowed significantly due to the challenging The state owns about 45 percent of the banking system. The financial system has been under stress, with

system is poorly institutionalize d. Judicial procedures tend to be protracted, costly, and subject to political pressure. Property rights are not protected effectively, and the enforcement of intellectual property rights is seriously deficient.

made starting a business less timeconsuming and costly. However, without needed reforms in other areas, those reforms have proved to be largely cosmetic, failing to create real momentum for dynamic entrepreneurial growth.

continue to constrain trade freedom.

economic and political situation.

negative impacts from the global crisis exacerbated by domestic turbulence.