RUCCI
JF-Expert Member
- Oct 6, 2011
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THE MOST comprehensive annual assessment of national competitiveness worldwide has been released. The World Economic Forum's Global Competitiveness Report 2014-2015 assesses the competitiveness landscape of 144 economies, providing insight into the drivers of their productivity and prosperity.
In Africa's case, there were extreme large regional variations - ranging from Mauritius at the top (39) and Guinea at the bottom (144). While improvements in institutions, markets and innovation saw some African nations climb the ranks, six African countries came in at the bottom of the index.
Here we take a brief look at those countries that shine, while others continue to slip and slide:
Best performers
The best African performer was Mauritius, ranking 39th out of 144 countries. Mauritius continues its steady upward trend this year, moving up six positions. Overall, the country is benefitting from relatively strong and transparent public institutions, with clear property rights, strong judicial independence, and an efficient government.
Private institutions are rated as highly accountable, with effective auditing and accounting standards and strong investor protection. Its transport infrastructure is well developed by regional standards, especially in terms of ports, air transport, and roads. In addition, the country this year also records improvements in its electricity and communications infrastructure.
The island nation was followed by South Africa (56), Rwanda (62), Morocco (72) and Botswana (74).
There were a few countries that managed to climb in the ranking.
Kenya continues its upward trend from last year and moves up by six places to reach 90th place, most notably in the areas of market efficiency. According to the report, its economy is supported by financial markets that are well developed, an efficient labour market, and an increasingly more efficient goods market.
Ghana reversed last year's downward trend and climbs up three points to 111th position this year, largely as the result of slight improvements in its macroeconomic indicators.
Morocco moved up to 72nd position this year, partially recovering from a drop last year. This was attributed to a reduced budget deficit (between 2012 and 2013) and improvements in primary education and innovation.
Some aspects of its institutions improved as well, reflecting Morocco's relative social and political stability and efforts made over recent years to modernise its business environment, particularly its administrative aspects.
Algeria moved up to 79th position this year. This rise is driven mainly by a sounder macroeconomic environment, which remains the country's most important competitiveness strength. Some aspects of education also show a positive trend: for example, the quality of education seems to be improving.
Namibia moves up by two places to 88th position. The country continues to benefit from a relatively well functioning institutional environment, with well protected property rights, an independent judiciary, and a fairly efficient government. To further improve its competitiveness in the region, the report suggested it improve its health and education systems.
Worst performers
The worst African performers were also on the bottom of the entire list. In the last position was Guinea (144), followed by; Chad (143), Mauritania (141), Angola (140) and Burundi (139).
South Africa gets a notable mention for continuing its downward trend, falling to 56th place this year. The country received low scores for the diversion of public funds (i.e. corruption), the perceived wastefulness of government spending and a more general lack of public trust in politicians.
A low ranking in security continues to be a major area of concern for doing business and a lack of investment in terms of education and skills in the labour force made matters worse. But not all is internal, external shocks also play a big part - the country's strong ties to advanced economies, notably the Eurozone, has made it more vulnerable to the economic slowdown in those economies.
These ties are likely to have contributed to the deterioration of fiscal indicators: its performance in the macroeconomic environment-having dropped sharply in the previous year-remains very low.
Source: Africa top 10 in latest World Economic Forum Competitiveness Index
