Despite President Jacob Zuma’s assertions that the economy is thriving, new research shows South Africa has reached ‘static market’ status, with little to nothing being done by government to attract foreign investment Gibs research into 133 countries’ global competitiveness has found that South Africa is beginning to lag behind more dynamic markets, with very little achieved over the past few years to improve political, social and economic institutions.
Lisa Brown, a senior researcher at the Gibs Centre for Dynamic Markets, says excessive red tape and human capital are hampering institutional progress in the country. As a result, SA is looking less attractive to investors who are looking to emerging African markets, particularly those that fall into the catch-up market. Little to nothing has happened in South Africa to improve our competitiveness, social institutions or policies Dubbed the ‘dynamic markets index’, the index assesses and compares institutional change and economic dynamism based on six pillars [openness and connectedness, red tape, socio-political stability, justice system, macroeconomic management and human capital] over a seven-year period between 2006 and 2012.
From the results, countries were categorised into dynamic, catch-up, static and a-dynamic markets. Only 18 countries measured were identified as dynamic markets with well-established and […]