Economy Profile: Malawi - Doing Business 2013
Core Content
Doing Business 2013 provides an analysis of the business environment in Malawi, focusing on regulations that affect small and medium-sized enterprises (SMEs). It measures the ease of doing business across 11 key areas of the business lifecycle, including 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.
The report ranks economies based on the ease of doing business index, which is calculated as the simple average of percentile rankings on each of the 11 indicators. For Malawi, the DB2013 rank is 157, a decline of 6 from DB2012. The report also includes data from comparator economies (Kenya, Mozambique, Namibia, Rwanda, Tanzania, Uganda) and the best global performer for each indicator.
Key Indicators and Performance
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Starting a Business |
141 |
139 |
Kenya (126), Mozambique (96), Rwanda (8) |
New Zealand (1) |
| Procedures |
10 |
10 |
Kenya (10), Mozambique (9), Namibia (10) |
New Zealand (1) |
| Time (days) |
39 |
39 |
Kenya (32), Rwanda (3) |
New Zealand (1) |
| Cost (% of income per capita) |
83.7 |
90.9 |
Kenya (40.4), Rwanda (4.3) |
Slovenia (0.0) |
| Paid-in Min. Capital (% of income per capita) |
0.0 |
0.0 |
- |
91 Economies (0.0) |
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Dealing with Construction Permits |
175 |
174 |
Kenya (45), Namibia (56), Rwanda (32) |
Hong Kong SAR, China (1) |
| Procedures |
18 |
18 |
Kenya (9), Namibia (7) |
Hong Kong SAR, China (6) |
| Time (days) |
200 |
200 |
Kenya (125), Namibia (30) |
Singapore (26) |
| Cost (% of income per capita) |
1,198.3 |
1,077.5 |
Kenya (211.9), Namibia (110.9) |
Qatar (1.1) |
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Getting Electricity |
179 |
178 |
Kenya (162), Namibia (87) |
Iceland (1) |
| Procedures |
6 |
6 |
Kenya (6), Namibia (7) |
Germany (3) |
| Time (days) |
222 |
222 |
Kenya (146), Namibia (38) |
Germany (17) |
| Cost (US$ per container) |
8,854.9 |
9,665.8 |
Kenya (1,208.2), Namibia (482.2) |
Japan (0.0) |
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Registering Property |
97 |
94 |
Kenya (161), Namibia (169) |
Georgia (1) |
| Procedures |
6 |
6 |
Kenya (9), Namibia (8) |
Georgia (1) |
| Time (days) |
69 |
69 |
Kenya (73), Namibia (46) |
Portugal (1) |
| Cost (% of property value) |
3.6 |
3.2 |
Kenya (4.3), Namibia (13.8) |
Belarus (0.0) |
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Getting Credit |
129 |
127 |
Kenya (12), Namibia (40) |
United Kingdom (1) |
| Strength of legal rights index (0-10) |
7 |
7 |
Kenya (10), Namibia (8) |
Malaysia (10) |
| Depth of credit information index (0-6) |
0 |
0 |
Kenya (4), Namibia (6) |
United Kingdom (6) |
| Public registry coverage (% of adults) |
0.0 |
0.0 |
Kenya (0.0), Namibia (0.0) |
Portugal (90.7) |
| Private bureau coverage (% of adults) |
0.0 |
0.0 |
Kenya (4.9), Namibia (63.9) |
United Kingdom (100.0) |
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Protecting Investors |
82 |
79 |
Kenya (100), Namibia (82) |
New Zealand (1) |
| Extent of disclosure index (0-10) |
4 |
4 |
Kenya (3), Namibia (5) |
Hong Kong SAR, China (10) |
| Extent of director liability index (0-10) |
7 |
7 |
Kenya (2), Namibia (5) |
Singapore (9) |
| Ease of shareholder suits index (0-10) |
5 |
5 |
Kenya (10), Namibia (6) |
New Zealand (10) |
| Strength of investor protection index (0-10) |
5.3 |
5.3 |
Kenya (5.0), Namibia (5.3) |
New Zealand (9.7) |
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Paying Taxes |
58 |
30 |
Kenya (164), Namibia (112) |
United Arab Emirates (1) |
| Payments (number per year) |
26 |
19 |
Kenya (41), Namibia (37) |
Hong Kong SAR, China (3) |
| Time (hours per year) |
175 |
157 |
Kenya (340), Namibia (350) |
United Arab Emirates (12) |
| Cost (US$ per container) |
2,175 |
1,675 |
Kenya (2,255), Namibia (1,800) |
Malaysia (435) |
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Enforcing Contracts |
144 |
145 |
Kenya (149), Namibia (41) |
Luxembourg (1) |
| Time (days) |
432 |
432 |
Kenya (465), Namibia (270) |
Singapore (150) |
| Cost (% of claim) |
94.1 |
94.1 |
Kenya (47.2), Namibia (35.8) |
Bhutan (0.1) |
| Procedures (number) |
42 |
42 |
Kenya (44), Namibia (33) |
Ireland (21) |
| Indicator |
Malawi DB2013 |
Malawi DB2012 |
Comparator Economies |
Best Global Performer |
| Resolving Insolvency |
134 |
135 |
Kenya (100), Namibia (59) |
Japan (1) |
| Time (years) |
2.6 |
2.6 |
Kenya (4.5), Namibia (1.5) |
Ireland (0.4) |
| Cost (% of estate) |
25 |
25 |
Kenya (22), Namibia (15) |
Singapore (1) |
| Recovery rate (cents on the dollar) |
18.5 |
18.5 |
Kenya (29.5), Namibia (42.3) |
Japan (92.8) |
Main Points
- Ease of Doing Business Index: Malawi ranks 157 out of 185 economies, showing a slight decline from DB2012.
- Starting a Business: Requires 10 procedures, takes 39 days, costs 83.7% of income per capita, and has 0.0% paid-in minimum capital.
- Comparator Economies: Kenya and Namibia show better performance, with Kenya at 126 and Namibia at 8 in the starting a business ranking.
- Global Best Performer: New Zealand is the top performer for starting a business, with a ranking of 1 and a cost of 0.0%.
- Other Indicators: Malawi lags behind in several areas, including dealing with construction permits, getting electricity, and resolving insolvency.
Key Information
- The report highlights the importance of regulatory reforms in improving the business environment.
- Malawi has not implemented any significant reforms in the past few years, as indicated by the lack of changes in the rankings from DB2008 to DB2013.
- The report uses the distance to frontier measure to assess how far an economy is from the best practices in each indicator.
- The paying taxes indicators have a different methodology in DB2013, which affects the ranking.
- The employing workers indicators are not included in the aggregate ranking but are still presented in the report.
Summary
Malawi's business environment is ranked 157 out of 185 economies in the Doing Business 2013 report. While the report highlights that the economy has not implemented any significant reforms in recent years, it provides detailed data on the procedures, time, and cost required to start and operate a business. The report also includes data from comparator economies and the best global performers, allowing for a more comprehensive analysis of the business environment. The findings indicate that Malawi has room for improvement in several areas, including dealing with construction permits, getting electricity, and resolving insolvency.