SUPPORTING A BETTER LOCAL BUSINESS & INVESTMENT CLIMATE

Case study of Uganda: Streamlining business

regulation procedures with local government

Presentation outline

Background Pre-licensing reform challenges Reform concept Main actors Reform achievements Lessons learnt

Background

GoU RBP Programmed mandated to demonstrate policy reforms

Trade licensing reforms piloted in 4 LGs

Successful implementation leading to a win-win outcome for the Local Governments & Business Community

Pre-reform challenges

3 competing objectives: regulation, registration and revenue

System slow and costly to businesses

No clear link between fee payment and services delivery

Limited revenue for LGs and high administrative costs

Reform Concept

De-link registration from regulation & revenue collection

Streamline & simplify the licensing process

Universal business enumeration & business register computerization

PPP & improved networking

Achievements A win-win for businesses and LGs Recommended by MoLG as revenue

enhancement best practice to all LGs

Cited in 2005 Word Dev. Report Awarded by NEPARD/CBC as a best

practice in smart regulation Being rolled out in additional LGs

with WB & MoLG support

Lessons Learnt

Leadership commitment critical Need for continuous engagement

between LGs and businesses Internal communications Staff motivation Human & physical infrastructure