South Africa has climbed the global competitiveness rankings for the first time in four years – but problems persist in health, education and labour.<\/p>\n
This is according to the latest Global Competitiveness Index for 2015-16, from the World Economic Forum (WEF).<\/p>\n
In its latest report, South Africa climbed seven places in the rankings to 49th, overall – reversing a downward trend that has persisted over the past four years.<\/p>\n
However this isn’t necessarily a sign of massive progress in the country, as South Africa’s competitiveness score of 4.4 has remained flat (up from 4.3 in 2014-15).<\/p>\n
Additionally, this years rankings are based on 140 countries, not the 144 countries in the 2014-15 report<\/p>\n
On a positive front, the country’s ICT and broadband sector was the biggest contributor to the reversal of the nation’s downward trend on the index, the WEF said.<\/p>\n
Its innovation score has also climbed five places, making it the most innovative country in the Sub-Saharan Africa region – above overall continent leader, Mauritius.<\/p>\n
According to the WEF, South Africa hosts the continent\u2019s most efficient financial market (12th) and benefits from a sound goods market (38th), which is driven by strong domestic competition (28th) and an efficient transport infrastructure (29th).<\/p>\n
It further benefits from strong institutions (38th), particularly property rights (24th) and a “robust and independent legal framework”.<\/p>\n
On the down side, the country needs to work to reduce corruption (76th) and the burden of government regulation (117th) – while improving the security situation (102nd).<\/p>\n
“The country also needs to address its inefficient electricity supply (116th) and inflexible labor market (107th),” the WEF said.<\/p>\n
The most worrisome sectors in South Africa remain health (128th) and the quality of education (120th) – where higher secondary enrollment rates will not be enough to create the skills needed for a competitive economy, the group said.<\/p>\n
South Africa’s maths and science skills remain the worst in the world, at 140th – while cooperation in labor-employer relations also holds the ‘dishonour’ of being stone last.<\/p>\n
As part of of its report, the WEF identifies the top 9 factors (ranked by score), which are the most problematic for doing business in South Africa, according to business leaders across the world.<\/p>\n
Scores were determined by asking business leaders across the world to select the five most problematic issues for doing business in the country, and to rank them between 1 (most problematic) and 5. The scores show the responses weighted according to their rankings.<\/p>\n
Factors with a score above 2.0 are listed above.<\/p>\n
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