Closing a business, recovery rate in Africa
Africa: Closing a business, recovery rate was 23.52 cents on the dollar in 2012. ▲ Rising
Closing a business, recovery rate in Africa, 2003–2012
Source: World Bank, Doing Business project (http://www.doingbusiness.org/). Measured in cents on the dollar.
Analysis
In 2012, closing a business, recovery rate in Africa stood at 23.52 cents on the dollar.
Compared with earlier readings it is down 1.6% on the previous year and up 25.9% over ten years.
Over the whole period, closing a business, recovery rate in Africa peaked at 23.91 cents on the dollar in 2011 and was at its lowest, 18.68 cents on the dollar, in 2003.
Closing a business, recovery rate in Africa, year by year
| Year | cents on the dollar | Change |
|---|---|---|
| 2003 | 18.68 cents on the dollar | — |
| 2004 | 19.94 cents on the dollar | +6.7% |
| 2005 | 20.1 cents on the dollar | +0.8% |
| 2006 | 22.64 cents on the dollar | +12.6% |
| 2007 | 22.71 cents on the dollar | +0.3% |
| 2008 | 22.51 cents on the dollar | -0.9% |
| 2009 | 22.57 cents on the dollar | +0.2% |
| 2010 | 23.11 cents on the dollar | +2.4% |
| 2011 | 23.91 cents on the dollar | +3.5% |
| 2012 | 23.52 cents on the dollar | -1.6% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 21.31 cents on the dollar | 18.68 cents on the dollar | 22.71 cents on the dollar | 7 |
| 2010s | 23.51 cents on the dollar | 23.11 cents on the dollar | 23.91 cents on the dollar | 3 |
Countries ranked near Africa
More private sector data for Africa
- Minimum capital for starting a business 112.7% (2012)
- Enforcing contracts, cost 47.7% (2012)
- Getting credit, legal rights index 5.45 (2012)
- Cost of registering property 9.1% (2012)
- Closing a business, cost 21.8% (2012)
- Closing a business, time 3.32 years (2012)
- Protecting investors, director liability index 3.65 (2012)
- Protecting investors, investor protection index 4.55 (2012)
- Protecting investors, shareholder suits index 4.94 (2012)
- Dealing with construction permits, cost 730.2% (2012)
Frequently asked questions
- What is closing a business, recovery rate in Africa?
- Closing a business, recovery rate in Africa was 23.52 cents on the dollar in 2012, according to World Bank, Doing Business project (http://www.doingbusiness.org/).
- What is the highest closing a business, recovery rate recorded in Africa?
- The highest recorded value was 23.91 cents on the dollar in 2011.
- What is the lowest closing a business, recovery rate recorded in Africa?
- The lowest recorded value was 18.68 cents on the dollar in 2003.
- How does Africa rank for closing a business, recovery rate?
- Africa ranks 2nd out of 6 groups with data for 2012.
- Is closing a business, recovery rate rising or falling in Africa?
- Over the last ten years it is up 25.9%. The long-run trend across the full record is rising.
- Where does this Africa data come from?
- The figures come from World Bank, Doing Business project (http://www.doingbusiness.org/), published as part of Closing a business, recovery rate (cents on the dollar). Statizoid updates them automatically from the source API.
Download this data
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About this data
The recovery rate is recorded as cents on the dollar recouped by creditors through the bankruptcy or insolvency proceedings. The calculation takes into account whether the business emerges from the proceedings as a going concern as well as costs and the loss in value due to the time spent closing down. If the business keeps operating, no value is lost on the initial claim, set at 100 cents on the dollar. If it does not, the initial 100 cents on the dollar are reduced to 70 cents on the dollar. Then the official costs of the insolvency procedure are deducted (1 cent for each percentage of the initial value). Finally, the value lost as a result of the time the money remains tied up in insolvency proceedings is taken into account, including the loss of value due to depreciation of the hotel furniture. Consistent with international accounting practice, the depreciation rate for furniture is taken to be 20%. The furniture is assumed to account for a quarter of the total value of assets. The recovery rate is the present value of the remaining proceeds, based on end-2006 lending rates from the International Monetary Fund’s International Financial Statistics, supplemented with data from central banks. For more information, visit http://www.doingbusiness.org/MethodologySurveys/.