Libreville, Gabon, 30 January 2019
— The World Bank Group today released a new report on private sector development in 17 Africa countries that finds that recent reforms had significant positive impact on access to finance, business cost savings, and business registration.
An Impact Assessment of OHADA Reforms: Uniform Acts on Commercial, Company, Secured Transactions, and Insolvency
is a comprehensive, independent assessment of IFC’s OHADA Investment Climate program from 2007 to 2017. It was released at the occasion of OHADA’s 25
th
anniversary in Libreville, Gabon.
The Organization for the Harmonization of Business Law in Africa – or OHADA - is made up of 17 Francophone African states and promotes a uniform legal and regulatory framework around business law in its member countries. The impact evaluation report looks at four OHADA Uniform Act reforms implemented with the support of the World Bank Group – commercial law, company law, secured transactions, and insolvency. Most notably, the OHADA Uniform Act on Secured Transactions led to $3.82 billion domestic credit to the private sector in seven member states between 2011 and 2015.
Hans Peter Lankes, Vice President for IFC’s Economics and Private Sector Development unit, said: “This rigorous, independent evaluation highlights the impact that the World Bank Group and OHADA have achieved over the last 10 years when it comes to investment climate. Going forward, it is important that we continue to support the OHADA initiative to create a better environment for businesses to grow and for the private sector to achieve development impact.”
Professor Dorothé Sossa, OHADA Permanent Secretary, said: “The benefits of the OHADA reforms reach businesses of all sizes and sectors, from entrepreneurs and small businesses who are typically microcredit customers, to large infrastructure projects. Thanks to these reforms, it is now easier and more affordable to register a business and access credit in OHADA member states.”
In addition to the impact evaluation, the report provides recommendations for further strengthening the OHADA initiative, including an increased focus on business law, stronger national-regional coordination, and an improved monitoring process.
The OHADA Uniform acts reforms program was funded, among others, by the Government of France, the World Bank Group and the Investment Climate Facility.
About the World Bank Group
The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: The World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit
www.worldbank.org
,
www.miga.org
, and
www.ifc.org
