SA drops down global competitiveness ladder

ED RICHARDSON
SOUTH AFRICA has dropped five places in the Global Competitiveness Index published by the World Economic Forum. The country now ranks 45th – just below Kuwait and ahead of Cyprus. Switzerland headed the table, with Angola in last place out of 125 countries included in the survey. South Africa was the highest-ranked African country, followed by Egypt (63), Botswana (81), and Namibia 84. The Global Competitiveness Index (GCI) rates countries according to nine “pillars” – institutions, infrastructure, macro economy, health and primary education, higher education and training, market efficiency, technological readiness, business sophistication and innovation. South Africa dropped 12 places (falling to 58) in the basic requirements sub index, highlighting the fundamentals for achieving sustained growth in factor-driven economies: strong institutions, adequate infrastructure, a supportive macroeconomic environment, and good basic health and education. The country did well in a number of areas “typically reserved for rich, innovation-driven economies”: it ranks 29th for innovation. Its economic sophistication is also reflected in high ranks for property rights (22), private institutions (23), goods (20) and financial market efficiency (27), business sophistication (32), and innovation (29).