THE BUSINESS ACTIVITIES REGISTRATION ACT (BARA) 2007 The Private Sector Position Presentation to the Development Partners 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

Background Information on BARA and the Private Sector Involvement BARA targets Micro and Small Enterprise formalisation VIBINDO identified implementation hurdles in the act This stimulated a research on BARA and the organisation of the stakeholders meeting The meeting was sponsored by BEST-AC The overall objective of the meeting was to gather stakeholders recommendations and develop advocacy issues TPSF in collaboration with VIBINDO organised the Business Activities Registration Act (BARA) Breakfast Meeting with an overall objective of gathering, collating and documenting suggestions from the stakeholders geared to improve BARA. It was expected that inputs and recommendations from the stakeholders as regards to the best practices in business registration would advocate for increased compliance and business formalization and result in (a), b) cbe infused in the Act. Specifically the Breakfast Meeting was organized to identify areas in the Act that should be reformed to make it more SME friendly, serve as a one-stop-service oriented Act and an enabler of business formalization. TPSF paid tribute to the government for introducing the BAR Act which intends to enhance the effectiveness and efficiency of registering business and repealing the Business Licensing Act of 1972 that was contributing to the increase in the cost of doing business. It was reiterated that the private sector feels that there are sections in the Act that when changed they will smoothen the implementation and increase the compliance to register and formalise. The meeting was challenged to discuss and reveal why business operators prefer to remain informal hence come up with proposals to the government that will enable to devise strategies that will facilitate voluntary registration and business formalisation. 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

Results of the Stakeholders Meeting Identified the sections in the act to change Developed a Private Sector Position on BARA More than 14 areas in the act were identified to be changed The private sector position was forwarded to the Permanent Secretary MITM Following problems and change recommendations were made Specifically the Breakfast Meeting was organized to identify areas in the Act that should be reformed to make it more SME friendly, serve as a one-stop-service oriented Act and an enabler of business formalization. 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

The Private Sector Position on BARA Problem Recommendations Registration to cover every business whatever the size Existence of Duo Ministries Limit the registration scope e.g. to businesses that have premises One Ministry to administer implementation through the Chief Registrar Chief Registrar to decentralise at the regional/ District level Limit the registration scope as it will be impractical for the Act to cover every business whatever size and wherever placed. The Act should register businesses that have premises (section 3. definition of business); Delete unnecessary information requirements for registration- (section13) has 17 requirements which may be difficult to comply hence unnecessary delays in registration 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

The Private Sector Position on BARA …..Cont Problem Recommendations A cumbersome registration process Section13 has 17 requirements for registrations difficult for Micro Enterprises to comply Multiple Registration A business registered under the act has to register again for every location Simplify requirements by deleting unnecessary information for registration Provide for a single registration for owners with multiple businesses Limit the registration scope as it will be impractical for the Act to cover every business whatever size and wherever placed. The Act should register businesses that have premises (section 3. definition of business); Delete unnecessary information requirements for registration- (section13) has 17 requirements which may be difficult to comply hence unnecessary delays in registration 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

VIBINDO, REX ATTORNERY AND TPSF The Private Sector Position on BARA The Private Sector Position on BARA …..Cont Problem Recommendations Tough punitive measures for small mistakes in Section 19 Inspection powers conferred to Registrar (Local Authority) may result in corruption and power abuse Delete the provisions for suspension, cancellation, revocation, de-registration but provide/ recast provision on deregulation under serious circumstances (section 19). Delete provisions for inspectors but grant Chief Registrar power to inspect (26 and 27)- Limit the registration scope as it will be impractical for the Act to cover every business whatever size and wherever placed. The Act should register businesses that have premises (section 3. definition of business); Delete unnecessary information requirements for registration- (section13) has 17 requirements which may be difficult to comply hence unnecessary delays in registration 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

The Private Sector Position on BARA …..Cont Problem Recommendations Tough penalties for offences Criminal offence for example for giving false info. High fines charged on turnover this creates fear and obstruct MSE enterprise business entry Provide for default fine for other non-compliance infringements-instead of suspension or de-registration level Decriminalise non-compliance by deleting sections (28 and 29) Limit the registration scope as it will be impractical for the Act to cover every business whatever size and wherever placed. The Act should register businesses that have premises (section 3. definition of business); Delete unnecessary information requirements for registration- (section13) has 17 requirements which may be difficult to comply hence unnecessary delays in registration 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

Other Key Recommendations Ensure that the evidence Act is amended to provide for admissibility of electronic evidence as primary evidence; Provide for electronic certification; be in line with the current development in the ICT E-Government Change BRELA to a customer oriented institution; Develop a Customer service charter Fast track BRELA development to become a one –stop –shop for business registration Coordinate Business Registration with town/Municipal planning. Delete the provisions for suspension, cancellation, revocation, de-registration and provide/ recast provision on deregulation under serious circumstances (section 19). The power vested to the Registrar can be misused and it is targeting petty mistakes i.e. not displaying a certificate Ensure that the evidence Act is amended to provide for admissibility of electronic evidence as primary evidence; Provide for electronic certification- hence be in line with the current development in the ICT 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

VIBINDO, REX ATTORNERY AND TPSF Advocacy Strategies Vibindo and TPSF have recommended to the govt. to: Consider the stakeholders’ concerns Cluster changes and identify those that could be changed through Regulations Put in place safety nets to mitigate sensitive recommendation (the issue of Duo Ministries) Implement a reformed BARA Further delays may render the act intended purpose redundant VIBINDO continues to implement its communication and media engagement strategy It is important that BARA is implemented, as we all observe that it has taken long before the Act is implemented, any further delays may render the intended purpose to be redundant. However, the government is requested to consider the raised concerns by the stakeholders and put in place safety nets that will mitigate the possible negative effects on the intended efficiency in the business registration 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF

VIBINDO, REX ATTORNERY AND TPSF Results The Government is processing the recommendations of the stakeholders VIBINDO and TPSF plans to consult the government after the completion of the on going Parliament session The consultations will asses to what extent the proposed Private sector recommendation have been implemented and the way forward It is important that BARA is implemented, as we all observe that it has taken long before the Act is implemented, any further delays may render the intended purpose to be redundant. However, the government is requested to consider the raised concerns by the stakeholders and put in place safety nets that will mitigate the possible negative effects on the intended efficiency in the business registration 2/1/2019 VIBINDO, REX ATTORNERY AND TPSF