‘ Starting business 2nd most expensive’
MBABANE - A recent report suggests that Eswatini has one of the highest costs of starting your own business, especially in the SACU region.
Es wat in ii sam ember of the Southern African Customs Union ( SACU) alongside Botswana, Lesotho, Namibia and South Africa. Eswatini’s costs of US$ 422.58 ( E6 272.81), according to the global economy. com, are said to be second highest in the SACU region behind Namibia ( E6 622.38).
For less than E200, according to the report, you can start your own business in South Africa. Lesotho and Botswana’s costs are said to be at around E1 260 and E600, in that order.
Asa budding business person anywhere, you must jump through a series of administrative hoops by acquiring t he proper approvals, permits and lic en c es. All these cost money.
According to the report, the most expensive African country in absolute terms is tiny Equatorial Guinea ( US$ 2 322), where entry into business eats up to 7.2 average monthly pay cheques.
Highest
“In relative terms, it is nearby Congo which has the highest relative cost of starting a business, not just in Africa but the world.
“However, across the Congo River, in the DRC, the cost of starting a business is just US$ 80. It’s one of more than a dozen African countries where you can set up a shop for less than US $100. And that includes economic powerhouses like Egypt and South Africa ,” highlighted the report.
Meanwhile, in Rwanda, it is said to be free but only for two years.
Registering a sole proprietorship in the country involves booking a business name. After t hat you complete t he Memorandum and Articles of Association. If you hire a lawyer it can cost between E1 500 and E3 000. After that, to register you need to submit documentation that include the memorandums and identity document copies, government receipts for the payment of name and the registration fee, among other steps. You also have to obtain a tax identification number.
Analysts say starting your own business should be cheap because once entrepreneurs become successful; they create jobs, wealth and tax revenue.
Sought for reaction on the figures, Minister of Commerce, Industry and Trade Manqoba Khumalo said he was yet to see the report .