Thursday, May 30, 2024

S.Africa economy is in a static position: GIBS report

The GIBS Dynamic Markets Index (DMI) has released a report that sees Africa’s most industrialised economy, South Africa, in a static position during the period of study, 2007 and 2014.

The DMI is a tool that measures the performance and progressive change of the institutional structure and economic capabilities of countries.

The DMI measures which countries have undergone change and improvement (or deterioration) in six enabling pillars that include open and connected;  red tape; socio-political stability;  justice system; macroeconomic management; and human capital.

Dynamic Markets are characterised by increased innovation, progressive and stable political systems and sustainable economic development.

The report saw Botswana and Mauritius as Africa’s only two countries classified as dynamic meaning they were responsive to issues that determined competitiveness.

“Mauritius’ 2014 unadjusted GIBS DMI change score is 0.43, meaning that over the past seven years it has seen an improvement in its institutional and enabling environment,” read the report.

GIBS’s Dean, Nicola Kleyn, said South Africa and the broader African continent have witnessed significant economic fluctuations, many as a consequence of global volatility and some linked to domestic circumstances.

“Country prospects for global and local investors and citizens alike are continually framed and reframed by rapidly changing economic, social and political environments,” said Kleyn.

She added that the role of policymakers and regulators in building institutional capability and creating a climate for growth was significant and played a crucial in determining a country’s competitiveness.

Other than South Africa, Nigeria is also another surprise in the index as it is among the catch-up markets together with countries like Zimbabwe, Burundi, Rwanda and Haiti. Lyal White, one of the writers of the DMI report says there is more to Nigeria’s story.

“Nigeria is not Angola [as far as reliance on resources is concerned] as the West African country has huge population which is an advantage to the country’s outlook.”

Credit: CNBC Africa


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