The latest world competitiveness report by the World Economic Forum shows that South Africa ranks as having some of the safest financial institutions in the world – but some of the world’s worst quality education.<\/p>\n
The report looks at a wide array of indicators, covering various aspects to measure how competitive a country is in the global marketplace.<\/p>\n
The rankings on each section is based on an executive survey, gauging how business leaders and executives across the world perceive the overall competitiveness in 138 countries.<\/p>\n
Among sections such as politics, education, economics, corruption and safety, financial security is also assessed.<\/p>\n
South Africa has an overall competitiveness ranking of 47th out of 138 (up two places from 2015) – but ranks most favourably in its financial institutions, where it carries the perception of having some of the world’s ‘safest’ banks.<\/p>\n
South Africa ranks top in the world for the extent that companies raise money by issuing shares and\/or bonds on the capital market, while ranking second for the healthy balance sheets – security – of its banking sector.<\/p>\n
The measure isn’t based on factual assessment or account principles, but is rather a reflection of the general perception around banks. What the data shows is that businesses have a lot of trust and confidence in South Africa’s banks.<\/p>\n
These are the countries in the world with the safest banking industries:<\/p>\n
| #<\/th>\n | Country<\/th>\n | Score (out of 7)<\/th>\n<\/tr>\n |
|---|---|---|
| 1<\/td>\n | Finland<\/td>\n | 6.6<\/td>\n<\/tr>\n |
| 2<\/td>\n | South Africa<\/td>\n | 6.6<\/td>\n<\/tr>\n |
| 3<\/td>\n | Canada<\/td>\n | 6.5<\/td>\n<\/tr>\n |
| 4<\/td>\n | New Zealand<\/td>\n | 6.5<\/td>\n<\/tr>\n |
| 5<\/td>\n | Australia<\/td>\n | 6.5<\/td>\n<\/tr>\n |
| 6<\/td>\n | Hong Kong SAR<\/td>\n | 6.5<\/td>\n<\/tr>\n |
| 7<\/td>\n | Norway<\/td>\n | 6.4<\/td>\n<\/tr>\n |
| 8<\/td>\n | Singapore<\/td>\n | 6.4<\/td>\n<\/tr>\n |
| 9<\/td>\n | Chile<\/td>\n | 6.4<\/td>\n<\/tr>\n |
| 10<\/td>\n | Sweden<\/td>\n | 6.2<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n South Africa is not without its problems, however, and the index reveals the areas which are a massive hindrance to businesses competing in the country.<\/p>\n Chief among the problems are poor health and a poor quality of education, the report shows – while the country scores rock bottom for its labour relations, inflexible labour laws, and a high cost to businesses as a result of crime.<\/p>\n According to survey respondents, there are a number of issues which are still seen as big barriers for doing business in South Africa – with government inefficiency, political instability and corruption listed among them.<\/p>\n These are the 16 highest-ranked reasons businesses are not keen on South Africa (in order, from most-cited):<\/p>\n
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