President Cyril Ramaphosa has welcomed the findings of the World Economic Forum’s (WEF) annual Global Competitiveness Index that shows South Africa has climbed 7 places since 2018.
That we have been able to improve our ranking so remarkably and within a relatively short period of time is a welcome sign that the structural reforms put in place to stimulate the economy and promote recovery are slowly but surely gaining traction, President Ramaphosa said.
The report notes that the country has registered ‘remarkable progress’ with regards to institutional quality, such as in restored balance of powers across different state entities; enhanced administrative efficiency of the public sector, and corporate governance.
South Africa also achieved a score of 100 for its ‘well developed equity, insurance and credit markets,’ and ranked 19th globally as a financial hub. The report also scores the country highly for having ‘one of the most advanced transport infrastructures in the region’ (a ranking of 45th) and for market size (a ranking of 35th).
The report is an annual assessment of the drivers of productivity and long-term economic growth in 141 economies. The report ranks the respective economies under a range of socio-economic indicators such as strength of institutions, infrastructure, ICT adoption, financial systems, macroeconomic stability and business dynamism.
Whilst we note there are areas for improvement � the report cites security and insufficient labour market flexibility as some of the constraints to growth, this improved ranking gives us added impetus to remain firmly on course with our economic reform agenda, President Ramaphosa said.
The President added that the country was also looking forward to the release of the World Bank’s Ease of Doing Business Index later this year. South Africa commenced work to realise its objective to be ranked amongst the Top 50 countries on this index by improving indicators such as starting a business; registering property; dealing with construction permits; paying taxes; and trading across borders.
Source: The Presidency Republic of South Africa