Brand South Africa. Research Update. IMD World Competitiveness Report

Transcription

1 Brand South Africa Research Update May-June 2016 The purpose with the monthly Research Update is to provide a quick orientation to research findings from Brand SA research projects, as well as data relating to Nation Brand Performance monitoring conducted by the organisation. In this update we profile over-all competitiveness features of South Africa according to the IMD. And the good news this quarter is that not only does South Africa improve in the IMD, but also moves significantly up in rankings on the World Bank Logistics Performance Index. Institute for Management Development (IMD) World Competitiveness Report - improvement from 53 to 52/61 World Bank Logistics Performance Index (LPI) improvement from 34/160 in 2014, to 20/160 in 2016 Taken together, these two indices provide insight into attractiveness features, and unique strengths, pertaining to the infrastructure profile of the Nation Brand. IMD World Competitiveness Report The IMD World Competitiveness Report gives an annual assessment of the unique competitiveness features of 61 countries along four base factors, being; - Economic Performance - Government Efficiency - Business Efficiency - Infrastructure The IMD makes use of a mixed methodology to gain insight into a nation s competitiveness through a combination of statistical data, survey data and exclusive business executives opinion surveys, with 61 countries in the 2016 data set. South Africa improves with one position to 52/61. South Africa s Overall IMD Performance South Africa has seen a relatively stable overall performance on the IMD Competitiveness Report since ranking 52 out 61 countries in

2 World Bank Logistics Performance Index 2016 South Africa performs exceptionally well in this index. In the 2016 study the country ranks 20 th out of 160 countries. In the 2014 edition of the study South Africa ranked 34 th. This is a significant improvement. 2014/ /16 0 South Africa Performance Logistics Performance Index Custom Infrastructur Internation Logistics Trackin s e al quality & g & shipments competenc tracing e Over -all rank Timeline s Some notable points on the LPI South Africa performs extremely well in the LPI, this also concurs with findings from the World Economic Forum Global Competitiveness Index where the country ranks 68/140 countries on Infrastructure; Of particular interest is that, in the WEF index, South Africa ranks 34/140 for Quality of Road Infrastructure; 36/140 for Quality of Port Infrastructure; and 14/140 countries for Quality of Air Transport Infrastructure; If these are considered in the context of the country s performance in the LPI, a clear and compelling case can be made for South Africa as a trans-shipment, logistics, and transport hub/centre of excellence on the African continent; In the past decade South Africa has been making strides in terms of infrastructure development with the implication that the Nation Brand can claim a unique profile in terms of establishing an enabling environment for South African citizens, as well as foreign tourists, investors, and traders that interact with the market; From a Nation Brand reputation and competitiveness point of view this has positive implications and can be utilised extensively to profile national capabilities. How does the index measure logistics performance? The international LPI is a summary indicator of logistics sector performance, combining data on six core performance components into a single aggregate measure. The six core components according to which the LPI measure performance are: The efficiency of customs and border clearance The quality of trade and transport infrastructure 2

3 The ease of arranging competitively priced shipments The competence and quality of logistics services The ability to track and trace consignments The frequency with which shipments reach consignees within scheduled or expected delivery times The boxes below illustrate strengths, improvements and challenges in the IMD. Economic Performance (Ranking-54) [49 th 2015] The economic Performance Sub-Factor Rankings: Prices 1 st 1 st Strengths International Trade 46 th 43 rd Domestic 50 th 52 nd Economy International 40 th 46 th Investment Employment 57 th 59 th Government Efficiency (Ranking-40) [40 th 2015] The government efficiency Sub-Factor Rankings: Fiscal Policy 10 th 9 th Strengths Public Finance 41 st 39 th Business Legislation Institutional Framework Societal Framework 50 th 50 th 51 st 52 nd 52 nd 53 rd The biggest improvements in the base factors is Business Efficiency which improved in its ranking from 52 in 2015 to 47 in 2016 with the sub indicators improving for Management 3

4 practices, Labour market, Attitudes and Values & Productivity efficiency. The only decline in this ranking is finance, which declined by 1 point from 2015 ranking. Infrastructure improved by 1 point in its ranking, from 55 in 2015 to 54 in Basic infrastructure, Technological infrastructure and Education all improved in its sub rankings, with Health and Environment remaining stable and Scientific Infrastructure declining by 3 points in the 2016 results. Infrastructure (Ranking-54) [55 th 2015] The infrastructure Sub-Factor Rankings: Education 51 st 50 th Basic 57 th 55 th Infrastructure Technological 59 th 57 th Infrastructure Scientific 40 th 43 rd Infrastructure Health and Environment 60 th 60 th Business Efficiency (Ranking-47) [52 nd 2015] The business efficiency Sub-Factor Rankings: Finance 26 th 27 th Strengths Management 42th 37 th Practices Labour Market 58 th 54 th Productivity & Efficiency 60 th 56 th Attitudes and 54 th 54 th Values 4

5 South Africa s Most Attractive Features The IMD s Executive Opinion Survey indicates that there are some unique features that make the nation brand attractive. Interestingly enough, when compared to other reputation indices (such as the Nation Brand Index), common attractiveness features include: - Quality of our corporate governance; - Effective legal environment; - Cost competitiveness; - Reliable infrastructure and - Access to financing The 15 biggest improvements and declines in the IMD are listed below: 5

6 Brand South Africa s Research Notes, Updates and Research Reports communicate findings from Brand South Africa research. The Research Notes and Reports are intended to elicit comments, contribute to debate, and inform stakeholders about trends and issues that impact on South Africa s Nation Brand reputation and overall competitiveness. Views expressed in Research Notes are those of the author(s) and do not necessarily represent those of Brand South Africa, or the Government of the Republic of South Africa. Every precaution is taken to ensure the accuracy of information. However, Brand South Africa shall not be liable to any person for inaccurate information or opinions contained herein. For More Information: Dr Petrus de Kock General Manager - Research petrusd@brandsouthafrica.com 6