SA improves its competitive edge
Thématique :
sud afrique
Wednesday, 20 May 2009
South Africa has improved its economic competitiveness to 48 from 53 according to the World Competitiveness Yearbook released on Wednesday.
It was ranked out of 57 nations by the yearbook, which was compiled by Productivity SA and was published by the International Institute for Management Development in Switzerland.
"That's quite an improvement, because countries usually only move one place a year," said Efficient Group economist Dawie Roodt. "I'd say it was surprising," he said.
Roodt cautioned that he had not seen the report in detail, but he speculated that South Africa's improved ranking could be a result of other ranked countries' decline during the current economic crisis.
In terms of business efficiency, South Africa's ranking jumped from 38 to 30, which the report attributed to the JSE's support of business investment and the regulatory environment of the financial system.
"Corporate governance in South Africa is better," said Roodt. "South Africa has a world-class banking system and this proves that."
Despite the improvements, South Africa still had to address its problems of poverty, labour and skills shortages.
The yearbook indicated that South Africa's tax policy, stock market, social security contributions by employers and employees and low cost-of-living all contributed to its competitiveness.
It also singled-out South Africa's terms of trade index, which marks the relative cost of imports to those of exports.
"Internationally, trading companies in manufacturing and services are key growth drivers, consequently it is vital to ensure that high productivity levels and growth are consistently attained and productivity initiatives at all levels are intensified," said Mosai.
The country showed little improvement when ranked on government efficiency, infrastructure and economic performance. While its ranking in government inefficiency improved to 26 from 28 and infrastructure rose from 56 to 55, economic performance dropped a place from 56 to 55.
South Africa has improved its economic competitiveness to 48 from 53 according to the World Competitiveness Yearbook released on Wednesday.
It was ranked out of 57 nations by the yearbook, which was compiled by Productivity SA and was published by the International Institute for Management Development in Switzerland.
"That's quite an improvement, because countries usually only move one place a year," said Efficient Group economist Dawie Roodt. "I'd say it was surprising," he said.
Roodt cautioned that he had not seen the report in detail, but he speculated that South Africa's improved ranking could be a result of other ranked countries' decline during the current economic crisis.
In terms of business efficiency, South Africa's ranking jumped from 38 to 30, which the report attributed to the JSE's support of business investment and the regulatory environment of the financial system.
"Corporate governance in South Africa is better," said Roodt. "South Africa has a world-class banking system and this proves that."
Despite the improvements, South Africa still had to address its problems of poverty, labour and skills shortages.
The yearbook indicated that South Africa's tax policy, stock market, social security contributions by employers and employees and low cost-of-living all contributed to its competitiveness.
It also singled-out South Africa's terms of trade index, which marks the relative cost of imports to those of exports.
"Internationally, trading companies in manufacturing and services are key growth drivers, consequently it is vital to ensure that high productivity levels and growth are consistently attained and productivity initiatives at all levels are intensified," said Mosai.
The country showed little improvement when ranked on government efficiency, infrastructure and economic performance. While its ranking in government inefficiency improved to 26 from 28 and infrastructure rose from 56 to 55, economic performance dropped a place from 56 to 55.
