South Africa has emerged, coming behind Mauritius who is leading the pack as number one in the 2017 Africa Competitiveness Report which was released during the WEF Africa conference in Durban.
Despite lacklustre economic growth, which has remained at less than a percent in the last financial year, South Africa is still seen as second most competitive economy on the continent. This is largely due to the rapid growth and improvement in the services sector.
“South Africa is the best performer on the continent in the areas of financial market development, technological readiness, business sophistication and innovation, ” says Barak Daniel Hoffman, co-author of the African Competitiveness report at the World Bank.
However, South Africa has lagged behind in health and primary education for years.
Hoffman says South Africa seems to have a vibrant private sector, while there is also a healthy appetite for investment into the country.
However a lot of that enthusiasm depends on policy certainty, investors want a stable environment put their money invest in.
Rwanda and Botswana have also seen improved competitiveness performance, moving up 10 places in the global ranking.