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These are the worst SA cities for electricity when starting a business

Starting a business in Port Elizabeth or Johannesburg? Then you may have to prepare yourself for a bit of a struggle if it requires electricity connection, according to The World Bank.

The international financial institution recently released a report called Doing Business in South Africa 2015, the first under the “Doing Business” series which looks at different factors and process involved in starting business in certain countries around the world.

Electricity, naturally, is a crucial requirement for most businesses and with South Africa currently experiencing problems with its supply, some entrepreneurs are finding it difficult to stay afloat.

Doing Business in South Africa 2015 compares small to medium-size business regulations in nine metros: Buffalo City, Cape Town, Ekurhuleni, eThekwini, Johannesburg, Mangaung, Msunduzi, Nelson Mandela Bay and Tshwane.

It looks at the regulations involved in six stages (dealing with construction permits, getting electricity, registering property, enforcing contracts, and trading across borders) of setting up shop in each metro.

The report measures new electricity connections according procedures, time and cost needed for a standard warehouse or building with specific needs.

On average, a business’ new connection takes five procedures and 141 days to be processed and costs 472.8% of a business’ income per capita. But in the Nelson Mandela Day, the report measured that it takes on average 333 days and the cost is 587.7% of a business’ income per capita, ranking it the worst metro to get an electricity connection.

The City of Johannesburg is ranked second worst as it takes an average of 226 days and costs 729.5% of income per capita.

The table below shows all the metro rankings.

Screenshot (520)

“The process of obtaining a new electricity connection for a business is fairly standardised across South African municipalities. However, significant differences regarding the length of the process and the cost of a connection exist,” the report states.

“Mangaung—South Africa’s best performing municipality—requires four procedures that take 80 days and cost 383.2% of income per capita”.

Among the report’s other findings is that it’s easier to start a business in Ekurhuleni, Johannesburg and Tshwane, deal with construction permits in Cape Town, get a commercial electricity connection and enforce a contract in Mangaung, and register property in Johannesburg.

You can read the full report on the Doing Business website.

[Image — CC by Wikimedia Commons]

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