Singapore tops the list of business-friendly economies globally.
The annual report finds that the 10 economies with the most business-friendly regulatory environments are Singapore; New Zealand; Hong Kong SAR, China; Denmark; the Republic of Korea; Norway; the United States; the United Kingdom; Finland; and Australia.
South Africa was ranked 43 in the world.
South Africa has slipped down six places in overall world ranking in the 2015 ‘Doing Business’ report released by the World Bank in Washington DC on Wednesday morning. SA now stands at number 43 out of 189 countries in the ranking, down from 37.
This ranking puts South Africa far behind other developing countries such as Malaysia (18th) Thailand (26th), Mauritius (28th), Peru (35th), Mexico (39th), and Chile (41st).
The Democratic Alliance’s (DA) spokesperson on trade and industry, Geordin Hill-Lewis warned this decline should be a wake up call to the governing ANC that its economic policies are failing.
“In our current position, South Africa is facing the reality of losing our status as the ‘gateway to Africa’. We need a decisive reform in policy now to ensure that we are not left behind by our fast-growing developing world peers.”
He said a major problem is that government policies at present make it too difficult and lengthy a process to start a business in South Africa.
“While the ANC is quick to affirm its support for entrepreneurs, the truth is that it is still far too difficult and lengthy a process to start a business in South Africa,” said Hill-Lewis.
In the ‘ease of starting a business’ category, South Africa dropped from 55th to 61st place. This ranking reflects the average time it takes to open a new business in South Africa, as well as the high costs and red tape involved.
“Continued uncertainty about government economic policy, difficult labour relations, and the possibility of imminent tax increases are all hampering our international competitiveness,” he said.
-sabreakingnews