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Executive Opinion Survey

The Survey is a tool for capturing timely and vital information that is not available at a global level. The

data collected provides a unique insight and qualitative portrait of each nations economic and business

environment, as well as how it compares with the situation in other countries. This years sample scope

was 15 000 surveys from 139 economies between January and May 2010. Following editing, 13 607

surveys were retained, which gives an average of 98 respondents per country, including Swaziland.

Analysis

The World Economic Outlook by the IMF projects 5.5% GDP growth in 2011 for Sub-Saharan Africa, up

from 5.0% in 2010. Yet the assessment of competitiveness for African economies raises questions about

how sustainable this growth will be over the longer term, particularly middle-income countries, including

Swaziland.

Swaziland is labeled the Switzerland of Africa; however the irony of the comparison satirizes this label.

Switzerland is ranked 1st

by the Global Competitiveness Index, labeling it the most competitive countryform the survey sample. Swaziland, ranking 126 /139, can only truly become the Switzerland of Africa by

making considerable & measurable improvements in its competitiveness. As a transitional economy, it

does reasonably well on measures of quality of infrastructure such as quality of railroad infrastructure

(35th

) and quality of roads (39th

), and institutions such as property rights (47th

), strength of auditing and

reporting standards (44th

), efficiency of legal framework in settling disputes (49th

) and soundness of banks

(44th

). Particularly impressive is the countrys female participation in labor force (16th

) and rigidity of

employment (18th

).

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However, a number of attributes make it one of the least competitive economies in the region, and these

weaknesses have to be addressed in order to enhance competitiveness. The poor health situation remains

an important obstacle to doing business in Swaziland, ranking 130th

overall. A greater concern though is

poor factor allocation by the government and private companies to improve the countrys quality of

education, technological readiness and innovation. The country ranks poorly in availability of research

and training services (137th

), company spending on R&D (131st

), and overall availability of scientists andengineers (139

th) among others. Efforts must be made to improve the quality leadership across the board,

both by government (wasteful spending ranked 106th

) and private companies (brain drain ranked 137th

), to

improve on human capital efficiency from primary school level to management level.

Conclusion

The Global Competitiveness aims at capturing the complexity of national competitiveness, by

highlighting an array of reforms that improve the long-term productivity of a country. Swaziland in

particular can improve its competitiveness through good governance, investment in quality of education,

technological adoption, and enhancing innovation potential. Even though economic crises are short-term

by nature, caused by business cycles, competitiveness is about the countrys development potential overthe medium to long term. It is countries that have competitive strengths in a variety of areas that can exit

crises faster and rebound stronger, as their development is based on productivity fundamentals.

The GCI is a platform for dialogue amongst government, business and civil society, and it can be used as

a catalyst for productivity-improving reforms, and Swaziland is in critical need of these, for the

betterment of living standards for all citizens.

The Executive Opinion Survey 2011 2012 is currently ongoing via FSE & CC. Business executives are

strongly encouraged to participate in the Survey. Please contact Fanele Chester atfsecc@business-

swaziland.com or 2404 0768 ext 213 for registration info.

Text and images from the WEF Global Competitiveness Report 2010 2011