SA in economic stasis, research shows

South Africa is caught in
economic stasis and continues
to lose traction on the Gordon
Institute of Business Science
(Gibs) Dynamic Market Index
(DMI).
“The country scores
particularly badly on aspects
such as red tape, its justice
system, openness and
connectedness – three of the
six factors we take into account
when determining the country’s
trade growth prospects,” said
Adrian Kitimbo, researcher
at the Gordon Institute of
Business Science.
Speaking at a recent
Johannesburg Chamber of
Commerce and Industry
(JCCI) networking breakfast,
Kitimbo said: “We look at
structures and policies and
try to create a comprehensive
comparison of countries and
their performance." SA scored
only 5.1 out of a total score of
10 on the red tape sub-sector,
which looks at corruption and
labour regulations, amongst
others. The country’s justice
system also only scored 5.1
out of 10 – referring to aspects
such as protection of investors,
enforcement of contracts and
property rights.
Despite the freight industry
bemoaning a lack of skills,
the country scored a high
8.1 out of 10 for human
capital which relates to skills
and demographic data. SA
also scored well (7.1) for its
macroeconomic management
which relates to aid dependency,
state debt burden and state
dependency. A high crime rate
and socio-economic threats
affected the socio-economic
stability rating (6.7).