Transcript Slide 1
Regional Business Climate Survey (RBCS)
Kara Rawden
GTZ - Advisory Service for Private Business
(ASPB)
May 2006
06.07.2015
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RBCS Strategy
Gauge the climate for business and investment, encourage
and attract investment
The RBCS project aims at promoting advocacy and dialogue
between the private and public sector within the region by
providing information for Public Private Dialogue and
ensuring that informed decisions are made
The RBCS report addresses itself to decision makers,
entrepreneurs and stakeholders in the private sector
The RBCS does not rank countries but aims at weighing the
business climate of the region and promoting the region as a
whole.
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RBCS Important Issues
How to present results, Who presents and why.
Inefficient PSOs.
2005
Other
76%
PSOs
24%
2006
PSOs
15%
Other
85%
Making use of the media to promote the results of the survey.
Credibility of the survey, the need for a respected scientific
institution.
Branding and Identity.
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RBCS Methodology
Focus on the manufacturing sector in the region
Unique capacity of the manufacturing sector to provide
activities with high value-addition, growth and employment
potential hence its developmental capacity
In this sense, mood of the manufacturing sector highly
reflective of “business mood”
List of respondents drawn mainly from membership lists of
Private Sector Organisations [PSO’s] conducting the RBCS
Additional sectors for 2005 were taken into account i.e. Primary
& Service
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RBCS Products
Brochure: ‘What is a Business Climate Survey’
Brochure: ‘The Results of the Business
Climate Survey’ - Annual
Report: ‘The
Results of
the Business
Climate
Survey’ Annual
www.rbcs.info
Why?
Newsletter - Monthly
Subscribe:
[email protected]
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RBCS Steps
Action
Who
Time Frame
Approach sponsors
All Partner
Organisations
December 2005
Database from co-operating
partners available to
Researchers
All Partner
Organisations
End March 2006
Steering committee
Partners / ASPB
End March 2006
Questionnaire sent to cooperation partners
Researchers
30 April 2006
Deadline for responses
All Partner
Organisations
31 May 2006
Evaluation workshop
Partners / ASPB /
Researchers
June 2006
Final Report
Spokespeople / ASPB /
Researchers
3rd week July 2006
Press conference
Partners/Spokespeople
/ ASPB
August 2006
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Media and Promotion
Spokespeople from our Partner Institutions carry out all the live
TV & Radio interviews after receiving media training with core
team
Press Packs and key messages are prepared for the Press
Conference
Our biggest article was worth approximately Euros 5,000.00 in
media space
Television and radio inserts ranged from Euro 100.00 to Euro
14,000.00
The value of the media coverage totaled seven times our initial
investment.
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Comparison 2004/2005/2006
2004
Angola Botswana
DRC
Lesotho Madagascar Malawi Mauritius Mozambique
Namibia
RSA
SwazilandTanzania Zambia Zimbabwe
TBD
NEPRU
NA
LCCI
NA
MCCCI
MCCI
AIMO
NEPRU
MR
FSE
CTI?
ZACCI
CZI/ZNCC
0
41
NA
13
NA
19
45
14
54
141
11
0
7
0
Namibia
RSA
2005
Angola Botswana
DRC
Lesotho Madagascar Malawi Mauritius Mozambique
UCAN
MR
GTZ
MR
MC
MCCCI
MCCI
AIMO
51
23
111
25
3
65
5
14
NEP/NCCI CH/MR/NEP
50
51
Namibia
RSA
SwazilandTanzania Zambia Zimbabwe
FSE
MR/TCCIA
MR
MR/CZI
17
21
21
24
2006
Angola Botswana
DRC
Lesotho Madagascar Malawi Mauritius Mozambique
MR
MR
GTZ
MR
MC/MR
MCCCI
MCCI
AIMO/MR
NCCI/MR
CH/MR
5
22
116
12
6
44
9
15
37
72
SwazilandTanzania Zambia Zimbabwe
FSE/MR TCCIA/MR
12
17
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MR
MR
33
28
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RBCS Challenges 2004
Obs tacles Score to bus ine ss activities in SADC Re gion:
Fluctuations of the exchange rate
7.49
Crime, thef t and corruption
7.40
Lack of market inf ormation
6.79
Customs regulations, procedures and bureaucracy
6.76
Economic and regulatory policy uncertainty
6.61
6.09
Af f ordable and reliable transportation
Trade tarif f s & custom charges
5.79
Lack of transparency of rules and regulations
5.46
Access to and cost of f inance (f or f oreign inv estors)
5.21
Business licensing and operating permits (f or f oreign inv estors)
5.19
5.16
Business culture
Access to land (f or f oreign inv estors)
5.11
4.89
Legal env ironment (enf orcement of contractual and property rights)
Communication restrictions
4.67
Visa regulations
4.00
Insurance
3.93
Import/export licensing
Domestic Content requirements
Phy to-sanitary and v eterinary regulations (etc.)
0
No Problem
Structure
3.78
2.99
ASCCI White Paper
2.86
5
Minor Problem
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10
Major Problem
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RBCS Challenges 2005
Fluctuations of the exchange rate
Crime, theft & corruption
Economic & regulatory policy uncertainty
Customs regulations, procedures & bureaucracy
Affordable and reliable transportation
Lack of transparency of rules and regulations
Lack of market information
Trade tariffs & custom charges
Legal environment
Access to and cost of finance
Business culture
Business licensing & operating permits
Access to land
Insurance
Import/export licensing
Visa regulations
Communication restrictions
Domestic Content requirements
Phyto-sanitary & veterinary regulations
7.61
6.46
5.94
5.73
5.39
5.17
5.11
5.01
4.83
4.72
4.51
4.43
4.33
3.95
3.86
3.74
Structure
3.63
3.40
ASCCI White Paper
3.14
0
5
10
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RBCS Challenges 2005 - Germany
Value of Perception (0=no problem - 10=major problem)
0
1
2
3
4
5
6
7
8
9
Crime, theft and corruption
Availability of qualified workforce
Legal environment
Customs regulations and bureaucracy
Fluctuations of the exchange rate
Economic and regulatory policy uncertainty
Transport connections to international traffic routes
Quality of financial institutions
Lack of transparency of rules and regulations
Trade tariffs and customs charges
Affordable and reliable transportation
Lack of market information
Insurance
Access to and cost of finance
Business Culture
Visa regulations
Communication restrictions
Import / export licensing
Business licensing and operating permits
Access to land
Phyto-sanitary and veterinary regulations
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10
RBCS Index 2005
The survey results for both 2004 & 2005 have been utilized, to
develop a Regional Business Confidence Index (RBCI).
2004
2005
94
100
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Conclusions on the Results
The 2005 SADC Regional Business Climate Survey reveals a
broad-based, optimistic and stable market
The SADC regional firms participating in the survey remain
optimistic about economic expectations over the ensuing
twelve months, for the period-ending 31 March 2006.
Recommendations
The results should be used as a medium to transfer
promotional messages to foreign investors.
The key recommendation is to first focus marketing on
promotion of the SADC region to attract the attention of
investors before promoting individual countries
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Lessons Learned
Category
Cost
Market Research
Low
PSOs
High
Combination - Planned
Combination - Crisis
PRICE
Medium
High
The use of a market
research company has
the dual effect of bringing
down the average cost
and increasing the return
rate
The future involvement of
the PSOs is dependant
on the use of the RBCS
by the PSOs themselves
Changes in PSO officials
has a major impact on
the success of the RBCS
questionnaire return rate
Quality of Brand &
Identity
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RBCS: A Tool to Promote PPD
Regional
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Thank You!
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Business Climate Survey (BCS)
Malawi
Kara Rawden
GTZ - Advisory Service for Private Business
(ASPB)
May 2006
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The Malawi Experience
Malawi is the first SADC member country to translate the RBCS into a
national business climate survey
The aim of the national survey is to guide decisions that will promote
national economic development by
•Producing a neutral and factual comprehensive report making it acceptable
to both the public and private sector
•PPD then selects the issues and decides how to tackle them
•The selection of issues for PPD then need to be guided by how much
potential is present of reaching consensus
•Issues for the PPD would then be followed by the partners of the PPD by
preparing their own briefs.
Democratic Republic of Congo and Madagascar taking up this initiative
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Economic Background
Globalisation is a serious challenge for Malawi, impinging on government
revenue collection and on private sector competitiveness
Opportunities of globalisation require a new focus on knowledge in trade,
production and services, and a new strategic positioning of the country in
line with its comparative advantages
Malawi benefits from being member of SADC and COMESA, and from
bilateral trade agreements
Malawi must ensure that its negative trade balance with SA is
compensated by increased investment into production; this is also in SA’s
interest
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Economic Background
Regional trade will not be free without harmonised standards - a highly
complex task
Malawi has made strides in improving the conditions for private sector
development; macro-economic conditions have considerably improved
The institutional landscape to support the development of the private
sector is fragmented and weak
The MCCCI has become self-sustaining and stronger in membership and
acceptance as the private sector voice
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Malawi’s Competitive Position
The 2004 WEF Africa Competitiveness Report ranks Malawi 12th of 25,
positively pointing out its lower crime and corruption levels as well as its
judicial independence
The 2006 WB ”Doing Business in Malawi” report shows positive rankings
for employment flexibility, contract enforcement and other areas
Malawi is performing better than others with regard to a number of human
development benchmarks in the group of low human development
countries
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Current and Expected Performance
50%
Survey results
Current Performance
The current
performance is
positive; expectations
for the future are even
better
Investment and
employment plans
support this optimism
Investments are
geared towards
modernisation,
productivity gains and
expansions
Expected Performance
40%
30%
20%
10%
0%
Very Good
Good
Fair
Expected Investment
Poor
Expected Employment
Increase a lot
Increase a lot
Increase
Increase
Remain Same
Remain Same
Decrease
Decrease
Decrease a lot
Decrease a lot
0%
20%
40%
60%
Very Poor
80%
0%
20%
40%
60%
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Major Obstacles to Doing Business in Malawi
8,3
Fluctuations of Exchange Rate
Custom Regulations, Procedures and Bureaucracies
7,4
Composition of Public Spending
7,3
Lack of Market Information
7,2
Economic and Regulatory Policy Uncertainty
Effectiveness of Parliament
7,0
6,9
Access to and Cost of Finance
6,7
Affordable and Reliable Transportation
6,5
Trade Tariffs and Custom Charges
6,5
Crime, Theft and Corruption
6,1
Access to Land
6,1
Lack of Transparency of Rules and Regulations
5,9
5,8
Technologically Aware Workforce
Legal Framework for PS to settle Disputes
5,4
Business Licensing and Operating Permits
5,4
Legal Environment
5,3
Business Culture
4,8
SPS
4,5
Govt Policy on Procurement of ICT
4,4
Insurance
4,1
4,1
Communication Restrictions
Import/Export Licensing
3,8
3,7
Visa Regulations
3,6
Domestic Content
0
1
2
No Problem
3
4
5
6
Minor Problem
7
8
Survey results
Exchange rate fluctuations,
customs regulations, public
spending and policy
uncertainty are important
obstacles to doing business
in Malawi
Market information, access
to finance, reliable
transportation and access to
land are important direct
needs
9
10
Major Problem
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Conclusions
Dynamics in public-private sector interaction have substantially grown,
but much more must be done to meet the global challenges; lack of
action is already causing frustration
The survey revealed optimism as well as readiness to invest and to
create employment
Greater integration of SME into the economy is possible, but a much
stronger institutional infrastructure is needed
Many problems are structural, but a number of issues can be dealt with,
even with the limited available resources
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Conclusions
Strengths
Weaknesses
Improved macro economic environment
Good will for economic development
Good policy documents
Public-private dialogue going on (NAG,
MCCCI)
Optimistic, diversified industrial sector
MCCCI being strengthened
Relatively good security situation
Opportunities
Threats
Domestic market opportunities
Regional and global market
opportunities
Regional investments
Fragility of present political situation
Weak infrastructure (e.g. electricity)
Weak institutions
Landlocked situation affects
competitiveness
Low skill base
Fragmentation of the private sector
Inadequate response of regulatory and
fiscal system to globalisation
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Possible Strategies
A clear economic development vision, shared by the public and private
sectors, would contribute to political stability
Strengthening the institutional and physical infrastructure must be a key
objective
Attracting foreign investment will strengthen the domestic private sector;
Malawi must prepare itself in time to point out its advantages to SA
investors
The need to adapt the fiscal and regulatory system to the requirements of
globalisation is immediate. The PPD needs to be directed towards this
The landlocked situation of Malawi could be an opportunity, in particular if
linkages between Malawian industries are strengthened
The fragmentation of the Malawian private sector needs to be overcome
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