Competitiveness in South Africa has deteriorated year-on-year y-o-y, the latest findings of the International Institute for Management Development IMD show.
It reflects badly on global investor hopes manifested since the Government of National Unity GNU was formed, especially considering that South Africa has slipped four places after 2024s World Competitiveness Rating WCR.
Placed 60 th out of 69 monitored economies last year, South Africa is now ranked 64 th , behind African peer markets Kenya 56, Botswana 58 and Ghana 61.
In a week where consumer data from Stats SA is expected, it bodes well that South Africa is ranked 7 th insofar as prices are concerned, and 25 th for tax policy take a bow Sars commissioner Edward Kieswetter.
As for the other categories making up the WCR for 2025, y-o-y rankings are looking a little bleak, particularly for infrastructure and business efficiency where last years gains have been eroded.
Whereas South Africa was ranked 60th for infrastructural competitiveness overall in 2024, having improved from 62 the year before, basic and technological infrastructural competitiveness are now ranked 64 th and 61 st, respectively.
The countrys poor infrastructural progress is cause for a deleterious social framework, which is ranked 64th, resulting in a lack of inclusivity for a wide range of citizens, the IMD warns.
South Africa should build on established scientific infrastructure, placed 48 th , to enhance existing competitiveness through improved investment, the IMD added.
Arturo Bris, director at the IMDs Competitiveness Centre, said a lot depended on the GNUs hoped-for success to improve South Africas overall competitiveness.
He said because history had shown that coalitions tended to perform poorly according to WCR findings, South Africas government would be well advised to focus on collaborative requirements for a coalition to succeed.
South Africa ranked as follows in some of the WCRs latest findings: local economy 63, foreign trade 44, foreign investments 46, employment 67, public finance 63, institution framework 61, business legislation 61, productivity and efficiency 63, labour 55, finance 46, business practice 56, values 58, health and environment 64, and education 64.
This year, Switzerland replaced Singapore at the top of the WCR.
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