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Cape Town – The World Economic Forum’s Global Competitiveness Index shows that South Africa’s department of trade and industry is on the right track, according to Coenraad Bezuidenhout, executive director of the Manufacturing Circle.
South Africa was ranked 52nd most competitive out of 144 countries surveyed for the 2012/13 survey. The only other African country ranked higher than South Africa was Tunisia at 32nd. China was 29th and Brazil 48th.
South Africa ranked 54th on the 2010/11 index and 50th on the 2011/12 index.
Formed in 2008, the Manufacturing Circle interacts with government and other stakeholders to review, debate and help formulate policies which will have a positive impact on the country’s manufacturing base.
The index is particularly supportive of the case that Minister of Trade and Industry, Dr Rob Davies should continue his department’s improving efforts to support manufacturing development in South Africa, according to Bezuidenhout.
The index shows that South Africa can be competitive on the quality of its suppliers and its international distribution networks.
“We would also suggest that the index strengthen the minister’s hand on trade policy, as it illustrates very clearly that our market is much more open than our Brics (Brazil, Russia, India, China and South Africa) competitors,” said Bezuidenhout.
“Relative to its Brics counterparts, South Africa scores well on the index for the quality of its institutions, for its transport infrastructure, its goods market efficiency, for progressional management and the integrity of its financial markets,” Bezuidenhout.
He does not agree with Davies' opinion that South Africa’s ranking on the index is not of great importance.
In answer to a question in parliament on Friday, Davies felt South Africa’s low ranking on the index is only of moderate importance because of the subjective way in which data is collected.
“As a liaison officer at a South African Partner Institute for the previous edition (2011-2012) of the World Economic Forum’s Global Competitiveness Index and on behalf of the Manufacturing Circle, I would have to respectfully disagree with the minister on the importance of South Africa’s ranking in this survey,” said Bezuidenhout.
“The index is significant precisely because it surveys both hard data as well as private sector opinion quite rigidly.
"It should, therefore, enjoy at least the standing of any of a number of business confidence indices, such as the Kagiso Purchasing Managers' Index, with due acknowledgement for the important global comparisons that the WEF index provides.”
He thinks numerous players in organised business would most probably suggest that the index is actually escalating in importance.
“Unresolved debates around our internal competitiveness, set against the backdrop of the US rolling back its policy of quantitative easing, make improving our domestic efficiencies all the more important for our attractiveness to international investors,” said Bezuidenhout.
“It is to the ministers’s credit that his department has leveraged industrial policy to a much improved degree to provide some relief for running internal inefficiencies. These should really be addressed across government through more coherent policy execution.
“It therefore provides rational justification for the difficult task the minister’s department has to roll back the hollowing out of our domestic manufacturing sector, due to the unreciprocated cheap access to our market enjoyed by our Brics counterparts.”
Johann Baard, executive director of the Apparel Manufacturers of South Africa (Amsa), agrees with Bezuidenhout about the importance of the index.
“It remains important to measure oneself against global standards and international best practice, as it provides us with a snapshot of whether policy measures such as industrial policy is having an impact,” said Baard.
“At first glance it does appear that the latest ranking is indicative of positive outcomes flowing from the implementation of the Industrial Policy Action Plan(s) over the past number of years. Having said this, key challenges remain in respect of illegal imports and unemployment.”
- Fin24
South Africa was ranked 52nd most competitive out of 144 countries surveyed for the 2012/13 survey. The only other African country ranked higher than South Africa was Tunisia at 32nd. China was 29th and Brazil 48th.
South Africa ranked 54th on the 2010/11 index and 50th on the 2011/12 index.
Formed in 2008, the Manufacturing Circle interacts with government and other stakeholders to review, debate and help formulate policies which will have a positive impact on the country’s manufacturing base.
The index is particularly supportive of the case that Minister of Trade and Industry, Dr Rob Davies should continue his department’s improving efforts to support manufacturing development in South Africa, according to Bezuidenhout.
The index shows that South Africa can be competitive on the quality of its suppliers and its international distribution networks.
“We would also suggest that the index strengthen the minister’s hand on trade policy, as it illustrates very clearly that our market is much more open than our Brics (Brazil, Russia, India, China and South Africa) competitors,” said Bezuidenhout.
“Relative to its Brics counterparts, South Africa scores well on the index for the quality of its institutions, for its transport infrastructure, its goods market efficiency, for progressional management and the integrity of its financial markets,” Bezuidenhout.
He does not agree with Davies' opinion that South Africa’s ranking on the index is not of great importance.
In answer to a question in parliament on Friday, Davies felt South Africa’s low ranking on the index is only of moderate importance because of the subjective way in which data is collected.
“As a liaison officer at a South African Partner Institute for the previous edition (2011-2012) of the World Economic Forum’s Global Competitiveness Index and on behalf of the Manufacturing Circle, I would have to respectfully disagree with the minister on the importance of South Africa’s ranking in this survey,” said Bezuidenhout.
“The index is significant precisely because it surveys both hard data as well as private sector opinion quite rigidly.
"It should, therefore, enjoy at least the standing of any of a number of business confidence indices, such as the Kagiso Purchasing Managers' Index, with due acknowledgement for the important global comparisons that the WEF index provides.”
He thinks numerous players in organised business would most probably suggest that the index is actually escalating in importance.
“Unresolved debates around our internal competitiveness, set against the backdrop of the US rolling back its policy of quantitative easing, make improving our domestic efficiencies all the more important for our attractiveness to international investors,” said Bezuidenhout.
“It is to the ministers’s credit that his department has leveraged industrial policy to a much improved degree to provide some relief for running internal inefficiencies. These should really be addressed across government through more coherent policy execution.
“It therefore provides rational justification for the difficult task the minister’s department has to roll back the hollowing out of our domestic manufacturing sector, due to the unreciprocated cheap access to our market enjoyed by our Brics counterparts.”
Johann Baard, executive director of the Apparel Manufacturers of South Africa (Amsa), agrees with Bezuidenhout about the importance of the index.
“It remains important to measure oneself against global standards and international best practice, as it provides us with a snapshot of whether policy measures such as industrial policy is having an impact,” said Baard.
“At first glance it does appear that the latest ranking is indicative of positive outcomes flowing from the implementation of the Industrial Policy Action Plan(s) over the past number of years. Having said this, key challenges remain in respect of illegal imports and unemployment.”
- Fin24
