SA economy gets more competitive

SECOND: ONLY MAURITIUS IS DOING BETTER IN AFRICA

World Economic Forum report comes in nick of time for SA’s push for investment.

The improvement of South Africa’s competitiveness in terms of the World Economic Forum (WEF) 2019 Global Competitiveness Index has been welcomed as good news for the country and its efforts to achieve economic growth and win investor confidence.

The South African National Civic Organisation (Sanco) is among organisations that welcomed the report that South Africa had improved by seven places to 60th.

The organisation expressed jubilation that SA was also measured as the second-most competitive economy after Mauritius on the African continent.

The WEF is an independent private body with international status, based in Switzerland, and its opinions and reports are taken seriously by various governments and business leaders.

The WEF report couldn’t have come at a better time for President Cyril Ramaphosa, who had been pushing so hard to bring foreign direct investments into the country.

He initiated the first investment summit in late 2018, when foreign and local investors made pledges, and this was followed by jobs submit – all meant to boost the country’s economy.

Recently the president established the Presidential Economic Advisory Council comprising local and foreign experts, who will advise him in areas that needed to be fast-tracked.

The WEF stated: “Further, South Africa’s competitiveness is being held back by relatively low business dynamism (61.9, 60th), which is inhibited by insolvency regulation and administrative burdens to start a business and a persistently insufficient labour market flexibility (52.1, 111th).”

Sanco national spokesperson, Donovan Williams said too often the focus was solely on insufficient labour flexibility, but the financial industry should be less risk averse and invest in new projects in South Africa. –