Monday, 11 July 2016

South Africa's Strength and Struggles

South Africa's Strength and StrugglesThere are presently many challenges facing the SA economy. But South Africans are opportunists by nature and tend to flourish in the most challenging of situation. The government is determined to address its key challenges. There are going to be good times and bad times, but lighten up.


The South African government says the country’s struggling economy, one of Africa’s biggest, is poised for a turnaround after years of sluggish growth, even though severe challenges persist. But South Africans are opportunists by nature and tend to flourish in the most challenging situations. They are committed to pick up their proverbial socks and work together to create jobs, and make an affirmative impact on the economy. The good news is that South Africa has risen one place in global competitiveness rankings, with its business efficiency recording a major development, according to the 2016 Institute for Management Development (IMD) World Competitiveness Yearbook. The Yearbook is the leading annual report on the competitiveness of nations, published by IMD since 1989. The report compares the performance of 62 countries according to more than 300 measures of competitiveness.


Government has noted the outcome of the referendum in Britain (Brexit). Our banks and financial institutions are well positioned to withstand financial shocks to the system as demonstrated in previous episodes including the 2008/09 global financial crisis. Jacob Zuma President of South Africa


In this year’s report, South Africa’s global competitiveness ranking rose from 53rd place out of 62 in 2015 to 52nd in 2016. The improvement is regardless of continuous drought and a depressed global economy. Looking at the BRICS grouping of emerging economies, South Africa performed better than Brazil, which ranked 57th. Mainland China dropped from 22nd place to 25th, but remains the most competitive BRICS country. Russia rose from 45th place to 44th, and India from 44th to 41st.


Strategically situated at the tip of the African continent, South Africa is a key investment location, both for the market opportunities that lie within its borders and as a gateway to the rest of the continent, a market of about 1 billion people. This country has a wealth of natural resources (including coal, platinum, coal, gold, iron ore, manganese nickel, uranium and chromium) and it enjoys increased attention from international exploration companies, mainly in the oil and gas sector.


It has world-class infrastructure, exhilarating innovation, research and development capabilities and an established manufacturing base. It is at the vanguard of the development and rollout of new green technologies and industries, creating new and sustainable jobs in the process and reducing environmental impact. With a copious supply of semiskilled and unskilled labour, it compares favourably to other developing markets in terms of the overall cost of doing business. For professional jobs, labour costs are less than half of the cost of European countries. For manufacturing jobs, labour costs are around one-third cost of Europe. Additionally, the South African Government has introduced wideranging legislation to encourage training and skills development and fast-track the building of world-class skills and competences. Read more....

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