While Spain may have
lifted the 2010 Soccer
World Cup, South
Africa is the winner
in the tournament of
competitiveness and
global respect.
That’s the view of
Dr Hischam El-Agamy,
executive director of
Swiss business school
IMD, who offered his
insights on South Africa’s
increasing competitiveness
in the global economy in
Johannesburg last week.
Despite the global
downturn, South
Africa has moved up
to 44th place in IMD’s
World Competitiveness
Yearbook, which rates
58 industrialised and
emerging economies
according to their
economic performance,
government efficiency,
business efficiency and
infrastructure. “Only two
years ago it was 53rd,”
said El Agamy.
And while the results
reveal the good and the
bad news, when examined
in context South Africa’s progress is nothing short
of amazing, in his view.
The survey is based on
323 criteria.
“South Africa has
moved up to 44 this year
from position 48 and is
ranked behind the likes
of Hungary, but ahead of
Mexico, Turkey, Jordan
and Russia. It is a very
honourable position,”
El-Agamy said.
“These are the most
competitive economies in
the world, with Singapore
in top position followed
by Hong Hong, USA and
Switzerland.”
He doesn’t deny the
considerable weaknesses
that exist – and of which
the country is patently
aware.
South Africa has the
worst unemployment
rating in the 58 countries,
with youth unemployment
a particular concern –
described by El-Agamy
as a ticking timebomb.
Inflation also comes in at
52.But the good news is
that in terms of cost of
living, the country ranks
at number 1 in absolute
value, tourism revenue
at 23, real GDP growth
at 22, and terms of trade
index (balance of trade) at
number 1.
“Business efficiency is
ranked at number 31 – in
the middle with the most
competitive countries
in the world – which is
nothing short of amazing.”
One of the particularly
concerning ‘bad news’
finds was the brain drain,
where South Africa ranks
lowest at number 58 – “and
it’s been increasing over
the past three years,” he
points out.
“The only people
who can help is the
entrepreneurs who need to
support SMEs. This is the
solution,” says El-Agamy.
The infrastructure
category, which measures
the extent to which basic,
technological, scientific
and human resources meet
the needs of business,
highlights some of South
Africa’s biggest challenges.
However, it has still made
significant progress,
climbing from 56th in 2009
to 51st in 2010.
Describing South
Africa as the “lighthouse”
of Africa, El-Agamy
is confident that South
Africa's successes create a
platform to shape a better
future.
SA looking good!
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