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.
