The results of the Africa Competitiveness Report 2013 provides a good sense of the many factors that are holding back Africa’s competitiveness. The 2013 Executive Opinion Survey carried out in 2012 shows that access to financing, inefficient government bureaucracy, and corruption present the most important hindrances to doing business in Africa.
While access to finance represents business leaders’ biggest concern by a wide margin, this confirms the lack of depth of the financial market in a majority of African economies. In addition, the lack of a sufficiently skilled workforce including the inadequate supply of infrastructure presents a significant obstacle for businesses in sub-Saharan Africa. Sub-Saharan African business leaders are also more concerned about high tax rates including government instability and coups coupled with policy uncertainty which have become serious concerns for business leaders. Inflation also continues to receive attention from business leaders.
Many African countries continue to feature among the least competitive economies in the world. By competitiveness we mean all of the factors, institutions, and policies that determine a country’s level of productivity. Productivity, in turn, sets the sustainable level and path of prosperity that a country can achieve. In other words, more competitive economies tend to be able to produce higher levels of income for their citizens. Competitiveness also determines the rates of return obtained by investment. Because the rates of return are the fundamental drivers of growth rates, a more competitive economy is one that is likely to grow faster over the medium to long term. The basic building blocks for a competitive economy include governance and institutions, infrastructure, and education.
This Report provides recommendations which could facilitate trade and regional integration, and jointly could be important drivers for improving the region’s competitiveness. These include simplifying import export procedures and trade facilitation, developing and leveraging ICTs, improving energy, improving transportation and infrastructure and finally building growth poles to develop productive capacity.
While access to finance represents business leaders’ biggest concern by a wide margin, this confirms the lack of depth of the financial market in a majority of African economies. In addition, the lack of a sufficiently skilled workforce including the inadequate supply of infrastructure presents a significant obstacle for businesses in sub-Saharan Africa. Sub-Saharan African business leaders are also more concerned about high tax rates including government instability and coups coupled with policy uncertainty which have become serious concerns for business leaders. Inflation also continues to receive attention from business leaders.
Many African countries continue to feature among the least competitive economies in the world. By competitiveness we mean all of the factors, institutions, and policies that determine a country’s level of productivity. Productivity, in turn, sets the sustainable level and path of prosperity that a country can achieve. In other words, more competitive economies tend to be able to produce higher levels of income for their citizens. Competitiveness also determines the rates of return obtained by investment. Because the rates of return are the fundamental drivers of growth rates, a more competitive economy is one that is likely to grow faster over the medium to long term. The basic building blocks for a competitive economy include governance and institutions, infrastructure, and education.
This Report provides recommendations which could facilitate trade and regional integration, and jointly could be important drivers for improving the region’s competitiveness. These include simplifying import export procedures and trade facilitation, developing and leveraging ICTs, improving energy, improving transportation and infrastructure and finally building growth poles to develop productive capacity.
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