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South Africa's ranking is likely to fall in the next survey. There have been recently been well publicised cases where company directors have been fraudulently replaced at CIPRO, the government agency that handles these registrations, due to a lack of adequate controls. The directors are replaced and the bank accounts are emptied (the new "directors" get signing powers at the bank) before anyone realises what's happened.

The Deeds Office (land registry) has also has had fraudlent land transfers going through, and although stealing land is more difficult that hijacking a company, it has happened, with complicity between crooked lawyers and corrupt officials.

In most cases these hijackings, of land, and of companies, have been reversed by courts, but the time and expense of going to court could cripple a small business.

If you start a business in South Africa, and decide to incorporate, you should make sure you verify directors regularly, watch your business bank accounts closely, and hope that the government sorts out the mess (there are new controls that are being introduced already at CIPRO).