BRAND SOUTH AFRICA Nation Brand Performance Presentation Prepared by Brand South Africa Research Updated November 2016 ABRIDGED VERSION 1
Contents Nation Brand Performance three realms of governance Global governance Political governance Corporate & economic governance Top five Ease of Doing Business destinations vs South Africa SA inbound & outbound investment profile Human & social development indicators Presentation prepared by Brand SA. Readers are welcome to use the data contained in this report for their own purposes provided they acknowledge the source as: Brand South Africa, Research & Nation Brand Performance Presentation, November 2016, available at: www.brandsouthafrica.com 2
Introduction The following presentation provides an abridged overview of Brand South Africa s Nation Brand Performance Monitoring. Focussing on three realms of governance global, political and economic/corporate it aims to profile the competitive strengths, advantages and challenges of the Nation Brand. It includes perspectives on country performance from a number of indices, such as the WEF Global Competitiveness Index; the Ibrahim Index of African Governance; the World Bank Doing Business Index, and the UNDP Human Development Index to name a few. Please note that the full pack of slides profiling the Nation Brand consists of the following: Global Governance; Political Governance; Corporate & Economic Governance; Nation Brand performance SWOT Analysis; and Nation Brand profiling. For the full report, please register on the Knowledge Hub.
NATION BRAND PERFORMANCE
Nation Brand Performance Governance plays a critical role in shaping the reputation of the Nation Brand For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance in 3 realms of activity: Global Governance Corporate Political
Nation Brand Performance Three realms of Governance
Nation Brand Performance GLOBAL GOVERNANCE
Nation Brand Performance Global Governance The Nation Brand s global and domestic reputation is to a large extent shaped by perceptions of efficient internal governance, while the nation brand s contribution to global governance has a direct bearing on international perceptions Global Governance Contribution Peaceful internally negotiated political settlement Served 2 terms as non-permanent member of the UN Security Council Plays an active role in the G20 Active role in transforming OAU to AU & contribution to Peace & Security on the African continent Champion of New Partnership for Africa s Development Included as fifth member of BRICS
Nation Brand Performance POLITICAL GOVERNANCE
Nation Brand Performance: Political Governance Snapshot of key performance indicators Governance Indicators WEF Institutions = 40/138 (2016) WEF Financial Market Development = 11/138 (2016) IMD Government Efficiency = 40/60 (2016) Open Budget Index = 3/102 (2015) World Press Freedom Index = 39/180 (2016)
Nation Brand Performance: Political Governance TI s Corruption Perception Index SA ranks 61 st of 168 countries with a corruption score of 44 (moderately corrupt) in 2015 CPI SA outranks BRICS counterparts. With a score above 40, it is the least corrupt of the BRICS nations Table: How the BRICS Nations Scored on CPI 2015 Rank Country 2015 Score 2014 Score 2013 Score 2012 Score 61 South Africa 44 44 42 43 76 India 38 38 36 36 76 Brazil 38 43 42 43 83 China 37 36 40 39 119 Russia 29 27 28 28
Nation Brand Performance: Political Governance The Mo Ibrahim Index of African Governance 2016 An annual assessment of quality of governance in every African country South Africa ranks 6 th out of 54 countries overall Scores in the Top 10 in all four categories Sustainable Economic Opportunity Safety & Rule of Law Participation & Human Rights Human Development 2nd 7th 5th 6th Source: Mo Ibrahim Foundation, 2016/7 IIAG
Nation Brand Performance CORPORATE & ECONOMIC GOVERNANCE
Nation Brand Performance:Corporate Governance WEF Global Competitiveness Report 2016/17 SA ranks 47 th out of 138 economies, SA & Mauritius are top African performers 12 competitiveness pillars: Institutions Labor market efficiency Infrastructure Financial market development Macroeconomic environment Technological readiness Health and primary education Market size Higher education and training Business sophistication Goods and market efficiency Innovation Strengths: Financial market development (11), Market Size (30), Institutions (40), Business sophistication (30), Goods and market efficiency (28) Improvements: Technological readiness (50 to 49), Innovation (38 to 35), Labour market efficiency (107 to 97), Macroeconomic environment (85 to 79), Health & Primary education (126 to 123), Infrastructure (68 to 64), Labour Market Efficiency (107 to 97) Challenges: Higher Education & Training (83 to 77)
Nation Brand Performance:Corporate Governance 2016 Index of Economic Freedom SA ranks 80 th out of 186 economies, and 7 th freest in the region. 10 freedoms grouped into four categories: RULE OF LAW GOVERNMENT SIZE Property Rights Fiscal freedom Freedom from Corruption Government spending REGULATORY EFFICIENCY OPEN MARKETS Business freedom Trade freedom Labor freedom Investment freedom Monetary freedom Financial freedom Strengths: Financial freedom (38/186) Improvements: Freedom from corruption (72 nd to 69 th ), Fiscal freedom (141 st to 140 th ), Government spending (90 th to 89 th ), Property Rights (56 th to 54 th ) Challenges: Business freedom (51 st to 67 th ), Labor freedom (97 th to 100 th ), Monetary freedom (107 th to 113 th ), Investment freedom (109 th to 124 th )
Nation Brand Performance:Corporate Governance World Bank Doing Business Index 2017 SA ranks 74 th out of 190 economies 10 topics: Starting a business Protecting investors Dealing with construction permits Paying taxes Getting electricity Trading across borders Registering property Enforcing contracts Getting credit Resolving insolvency Strengths: Protecting investors (22/190), paying taxes (51/190), resolving insolvency (50/190), Getting credit (62/190) Improvements: Resolving insolvency (51 to 50/190) Challenges: Starting a Business (131), Registering Property (105), Trading across Borders (139), Getting Electricity (111), Enforcing Contracts (113), Dealing with construction permits (99) Source: World Bank (2016): Doing Business 2017: Equal Opportunity for All
Nation Brand Performance SA INBOUND & OUTBOUND INVESTMENT PROFILE
SA Investment Profile Global FDI flow indicators: Inbound EY Africa Attractiveness Survey (2015) SA is the top destination for FDI projects attracting 121 projects in 2014 It was the favourite destination for Chinese projects, securing 34.4% of total Chinese investment on the African continent Source: EY Africa Attractiveness Survey 2015
SA Investment Profile Global FDI flow indicators: Outbound EY Africa Attractiveness Survey (2015) SA 2 nd largest investor into Africa SA firms are leading intraregional investors in financial services sector 16 projects launched in 2014 Source: EY Africa Attractiveness Survey 2015
SA Investment Profile Intra-SADC investment South Africa plays pivotal role in the economic revival of the continent Contributes 68% of SADC GDP SA invested USD1,4b in 75 new FDI projects in Africa (2012) Created 50,000 jobs Africa-wide Source: Inside Southern Africa, September 2015
SA Investment Profile : Infrastructure (1) South Africa has world-class infrastructure, including an excellent transport network, low-cost energy and sophisticated telecommunications facilities Road and Rail Transport A massive motorway improvement scheme has seen extra lanes added, a sophisticated electronic toll system introduced and interchanges drastically renovated The Gautrain rapid rail system links the OR Tambo International Airport with stations in Johannesburg and Pretoria Infrastructure Indicators WEF Quality of roads = 29/138 (2016) WEF Quality of railroad infrastructure = 40/138 (2016) IIAG Overall Infrastructure 6/54 (2016)
SA Investment Profile : Infrastructure (2) Ports Most advanced port infrastructure on the African continent Saldanha Bay in the Western Cape is the largest natural anchorage with the deepest water, 60 nautical miles northwest of Cape Town The Durban port in KZN handles the greatest volume of seagoing traffic of all SA ports The Richards Bay Port in KZN can handle a total of 1 782 ships with a gross tonnage of 65 994 515 in a year The Port Elizabeth Port in the Eastern Cape handled a total of 976 ships during the 2015 calendar year The Cape Town Port in the Western Cape competes with Alexandria for recognition as the most famous port in Africa Infrastructure Indicators WEF Quality of port infrastructure = 37/138 (2016) IMD Reliable infrastructure = key attractiveness factor of the economy
SA Investment Profile : Infrastructure (3) Air Transport OR Tambo International caters for 19 million passengers annually Airports Company of South Africa (ACSA) operates 9 airports, which handle more than 200 000 aircraft landings The numbers all add up to ACSA being Africa s premier airports authority Infrastructure Indicators WEF Quality of air transport infrastructure = 10/138 (2016) WEF Available airline seat km/week, millions* = 28/138 (2016) IIAG Air transport = scores 97/100 (2016)
Nation Brand Performance HUMAN & SOCIAL DEVELOPMENT INDICATORS
Nation Brand Performance Human & Social Development Indicators Since the dawn of democracy, and regardless of economic challenges in recent years, SA has been making steady progress on the front of human & social development The UNDP s Human Development Index (HDI) charts SA s progress as follows: SA s HDI trends 2011-2015 Source: UNDP, Human Development Report 2015
Prepared by Brand SA Research Contact: Dr Petrus de Kock, GM Research petrusd@brandsouthafrica.com Dr Judy Smith-Höhn, Research Manager judys@brandsouthafrica.com Leigh-Gail Petersen, Researcher leigh@brandsouthafrica.com Readers are welcome to use the data contained in this report for their own purposes provided they acknowledge the source as: Brand South Africa, Research & Nation Brand Performance Presentation, November 2016, available at: www.brandsouthafrica.com 26