Overview

Doing Business in Hargeisa measures business regulations and their enforcement in Hargeisa, Somaliland. It is the first Doing Business city profile in Somaliland. The report measures regulations affecting 11 stages of the life of a small or medium-size business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and employing workers. Data on the employing workers indicator is available as an annex. The ease of doing business in Hargeisa can be compared to the ease of doing business in 183 other economies measured annually by Doing Business.

Main Findings

• The government has made strides setting up some of the institutions and rules necessary for businesses to operate. Yet challenges persist, including implementing key business regulations, and putting into place a formal banking system.
• Compared to the 183 economies measured by Doing Business in 2012, Hargeisa would rank 174 on the ease of doing business. Behind this aggregate ranking, Hargeisa’s performance varies from topic to topic (see figure below).
• Hargeisa ranks 175 on the ease of starting a business. The process is fast but expensive, with 60% of the cost stemming from the cost of business licenses.
• On the ease of dealing with construction permits, getting electricity and registering property, institutions governing these areas are relatively efficient. Hargeisa ranks 86, 84 and 79, respectively, ahead of the averages for Sub-Saharan Africa and the fragile and conflict-affected states.
• On the ease of trading across borders, Hargeisa would rank 127. Importing and exporting a standardized container of cargo through the port of Berbera is faster and cheaper than the Sub-Saharan Africa average.
• On the ease of protecting investors and getting credit, Hargeisa would rank 181 and 184, respectively. These rankings reflect an incomplete regulatory framework.