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BRAND SOUTH AFRICA
Nation Brand Performance
Presentation
Prepared by Brand South Africa Research
Updated November 2016
ABRIDGED VERSION
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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
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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.
Introduction
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:
Governance
Global
Political Corporate
Nation Brand Performance – Three realms of Governance
GLOBAL GOVERNANCE
Nation Brand Performance
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
Active role in transforming OAU to
AU & contribution to Peace &
Security on the African continent
Served 2 terms as non-permanent
member of the UN Security Council
Champion of New Partnership for
Africa’s Development
Plays an active role in the G20 Included as fifth member of BRICS
POLITICAL GOVERNANCE
Nation Brand Performance
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 61st 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 theleast corrupt of the BRICS nations
Nation Brand Performance: Political Governance
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
Table: How the BRICS Nations Scored on CPI 2015
The Mo Ibrahim Index of African Governance 2016
● An annual assessment of quality of governance in every African country
● South Africa ranks 6th out of 54 countries overall
● Scores in the Top 10 in all four categories
Nation Brand Performance: Political Governance
Safety &
Rule of Law
Sustainable
Economic
Opportunity
Participation
& Human
Rights
Human
Development
2nd 6th5th7th
Source: Mo Ibrahim Foundation, 2016/7 IIAG
CORPORATE & ECONOMIC
GOVERNANCE
Nation Brand Performance
WEF Global Competitiveness Report 2016/17
Nation Brand Performance:Corporate Governance
● SA ranks 47th 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)
2016 Index of Economic Freedom
Nation Brand Performance:Corporate Governance
● SA ranks 80th out of 186 economies, and 7th 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 (72nd to 69th), Fiscal freedom (141st to 140th), Government spending (90th to 89th), Property Rights (56th to 54th)
Challenges: Business freedom (51st to 67th), Labor freedom (97th to 100th), Monetary freedom (107th to 113th), Investment freedom (109th to 124th)
Starting a business Protecting investors
Dealing with construction permits Paying taxes
Getting electricity Trading across borders
Registering property Enforcing contracts
Getting credit Resolving insolvency
World Bank Doing Business Index 2017
● SA ranks 74th out of 190 economies
● 10 topics:
Nation Brand Performance:Corporate Governance
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
SA INBOUND & OUTBOUND
INVESTMENT PROFILE
Nation Brand Performance
Global FDI flow indicators: Inbound
EY – Africa Attractiveness Survey (2015)
SA Investment Profile
Source: 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
Global FDI flow indicators: Outbound
SA Investment Profile
Source: EY Africa Attractiveness Survey 2015
• SA 2nd largest investor into
Africa
• SA firms are leading intra-
regional investors in financial
services sector
• 16 projects launched in 2014
EY – Africa Attractiveness Survey (2015)
Intra-SADC investment
SA Investment Profile
• 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)
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
South Africa has world-class infrastructure, including an excellent transport network,low-cost energy and sophisticated telecommunications facilities
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 sea-
going 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)
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:
Nation Brand Performance
Source: UNDP, Human Development Report 2015
SA’s HDI trends 2011-2015
Prepared by Brand SA Research
Contact:
Dr Petrus de Kock, GM – Research
Dr Judy Smith-Höhn, Research Manager
Leigh-Gail Petersen, Researcher
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
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