World Bank Report: SA drops six places
29 October 2014
The World Bank's ‘Doing Business' report for 2015, released in Washington DC this morning, shows that South Africa's economy is heading in the wrong direction under the Zuma administration.
South Africa has dropped by six places in the overall world ranking, from 37th to 43rd. This sharp decline should be a wake up call to the ANC that its economic policies are failing. South Africa is becoming less and less competitive in the world economy and, as a result, a number of other developing economies are pulling ahead of us, including Malaysia (18th), Thailand (26th), Mauritius (28th), Peru (35th), Mexico (39th), and Chile (41st).
In our current position, South Africa is facing the reality of losing our status as the ‘gateway to Africa'. We need a decisive reform in policy now to ensure that we are not left behind by our fast-growing developing world peers.
South Africa dropped in ranking in seven of the ten sub-categories, and did not improve in any. In three sub-categories our score remained unchanged. In the ‘Ease of starting a business' category, South Africa dropped from 55th to 61st place. This ranking reflects the average time it takes to open a new business in South Africa, as well as the high costs and red tape involved. Again, our ranking is behind competitor developing countries.