The World Bank’s Business Ready (B-READY) framework, introduced to replace the former Doing Business model, offers a new pathway for developing countries like Uganda to streamline their business environments and stimulate private sector growth. This transition from Doing Business to B-READY, with a deeper focus on regulatory efficiency, public services, and operational transparency, aims to foster private sector resilience, expand job opportunities, and catalyze sustainable economic growth. In the context of Uganda, a country striving to achieve full middle-income status, B-READY’s structured approach could be instrumental in aligning national regulatory and investment strategies with the demands of a modern economy.
Transition from Doing Business to B-READY
While Doing Business primarily emphasized regulatory burden reduction and rank-based incentives to inspire reform, B-READY broadens the focus. It targets a comprehensive assessment of regulatory quality, the availability and effectiveness of public services, and the ease with which businesses can operate. This shift could bring substantial benefits to Uganda by promoting transparency, quality in public services, and an equitable regulatory environment.
Under B-READY, Uganda has the opportunity to address gaps in areas that Doing Business sometimes overlooked, such as labor regulations, social benefits of private sector growth, and regional disparities in regulation. Unlike the more urban-focused Doing Business, B-READY’s multi-city, nationwide approach could encourage balanced growth across Uganda’s urban and rural areas, fostering uniformity in business conditions and allowing previously underserved regions to participate in the country’s economic advancements.
Key Pillars and Potential Priorities for Uganda
B-READY assesses economies through three pillars—Regulatory Framework, Public Services, and Operational Efficiency. Each provides Uganda with targeted reform opportunities that could bolster its business environment and improve outcomes for businesses and workers alike.
Regulatory Framework
To enhance Uganda’s regulatory environment, B-READY examines not only the number of regulations but their quality, clarity, and accessibility. In Uganda, reform priorities could include streamlining the process of business registration, licensing, and tax compliance—historical challenges for small businesses. Simplifying these procedures and improving regulatory transparency could lower barriers to formalization, bringing more businesses into the formal economy and increasing government revenues.
Additionally, Uganda could benefit from aligning its labor regulations with regional standards to attract foreign investment. A balanced approach to labor laws would need to encourage worker protection while not overly burdening employers, striking a balance to attract foreign investors and spur domestic entrepreneurship.
Public Services
B-READY emphasizes the importance of public services in supporting businesses. In Uganda, consistent access to quality services—such as electricity, water, and telecommunications—remains a significant challenge, especially for businesses outside Kampala. Addressing these challenges through reliable public infrastructure and digitization of services could improve productivity and reduce costs for businesses.
Another key area for Uganda under this pillar is the integration of digital governance, which would enhance transparency and reduce opportunities for corruption. Introducing digital solutions for business registration, tax payments, and compliance monitoring could improve the business climate, cut down bureaucratic red tape, and strengthen trust between the government and private sector.
Operational Efficiency
The third pillar, Operational Efficiency, evaluates how effectively regulatory frameworks and public services function in practice. Uganda’s high levels of informality—nearly half of its labor force is in informal employment—pose challenges for operational efficiency. To address this, the government could support programs that provide business training, skills development, and market access for informal businesses.
Operational efficiency also extends to public institutions responsible for enforcement and compliance. Enhancing the capacity and accountability of these institutions can ensure that regulations are applied consistently, preventing unnecessary delays that often plague businesses.
Challenges and Opportunities for Uganda
Implementing the B-READY framework in Uganda would not be without challenges. Political will and stable leadership are essential, particularly given that regulatory reform often requires changes to long-established systems. Resistance from entrenched interests may slow down necessary reforms. Additionally, funding constraints may limit Uganda’s ability to invest in infrastructure and technology upgrades needed to meet B-READY standards.
However, the B-READY framework offers Uganda opportunities to leverage its youthful population, entrepreneurial spirit, and untapped potential in sectors such as agriculture and technology. By fostering a more conducive business environment, Uganda could attract domestic and international investments that create jobs, foster innovation, and stimulate broader economic growth.
Impact on Uganda’s Long-Term Economic Goals
In the context of Uganda’s goal of achieving middle-income status, B-READY’s long-term focus could play a crucial role. An improved regulatory environment, coupled with efficient public services, would attract investment in key sectors, enhancing productivity and raising income levels. The creation of a dynamic private sector, supported by sustainable policies, is fundamental to achieving the economic growth targets required to reach middle-income status.
By addressing structural issues through B-READY, Uganda can work toward a future where its private sector is not only resilient but also inclusive and sustainable. Over time, these reforms could reduce poverty, improve living standards, and foster shared prosperity across the country. If Uganda leverages the B-READY framework effectively, it stands to make significant strides in building a robust, business-ready environment that aligns with its development ambitions and positions it as a competitive economy on the African continent.
