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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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