“It cannot be disputed that the South African economy is experiencing challenges with the World Bank and the South African Reserve Bank having revised growth targets downwards in the recent weeks,” it said on Tuesday.
However, according to Brand SA, the country has a range of strengths that can be leveraged to turn the economic situation around including the 2014 Global Competitiveness Index released by the World Economic Forum that said that South Africa hosts the continent’s most efficient financial market (12/140) and benefits from a sound goods market (38/140), which is driven by strong domestic competition (28/140).
Another strength that South Africa has is that the Ibrahim Index on African Governance in its 2015 assessment of 54 countries in Africa, released this week, found that South Africa ranks number two in the continent in terms of business environment and number one in terms of public management.
Meanwhile, the Department of Trade and Industry earlier this week announced that Foreign Direct Investment inflows into South Africa amounted to US$3.31 billion from January 2015 to July 2015. This indicates confidence in South Africa’s investment climate by foreign investors.
South Africa is also currently implementing a Nine-Point Plan comprising simultaneous actions in key strategic areas, aimed at revitalising the economy.
“These statistics show that despite challenges in the South African economy which are contributing negatively to business confidence, the South African economy remains strong and well positioned to recover in terms of business confidence,” said Brand SA.
Speaking at a Black Management Forum on Tuesday, Minister in the Presidency responsible for Planning, Monitoring and Evaluation, Jeff Radebe, said: “Faced with a stagnating economy, it is imperative that we find effective and sustainable ways to accelerate the growth rate [and] we need to develop the country’s industrial capabilities and reduce dependence on commodity exports.”
Brand SA said the commitment by government and collaboration by the corporate sector will see South Africa begin to leverage the strengths highlighted above to reverse the current economic situation in the country.