Productivity SA chief executive officer (CEO), Mr Mothunye Mothiba vote of thanks at the launch of the 2022 World Competitiveness Yearbook (WCY)…

Productivity SA chief executive officer (CEO), Mr Mothunye Mothiba vote of thanks at the launch of the 2022 World Competitiveness Yearbook (WCY) occasion on 21 June 2022.

Programme Director, Executive Manager:
Senior Economist: IMD World Competitiveness Center, Dr. José Caballero
Productivity SA Chairman: Professor Mthunzi Mdwaba
Productivity SA Chief Economist: Productivity SA, Dr Leroi Raputsoane
Representatives of Organised Labour; Union Federations and Union Members
Representatives of Business and Members of the Business Community.
Representatives of Government and State-Owned Entities.
The Board, Executive Management and Productivity SA staff;
Members of the media;
All stakeholders
Ladies and gentlemen
Good Morning
Dumelang
Sanibonani
Programme Director, Ladies and gentlemen, the launch of the South African Chap-ter of the IMD Competitiveness Yearbook is an important milestone for us as Productivity SA and a critical moment for our country to reflect back on the impact of our policy and programme interventions since June 2021, moving from a ranking of 62 to 60 in 2022, with all the factor showing an improvement.

Ladies and gentlemen, this moment, as other speakers have already confirmed give us an opportunity as a country to analyse how we have over time managed our competencies to achieve long-term value creation and improve the livelihoods of the citizens. An improvement in government efficiency to 53 out of 63 countries from 61 out of 64 countries in 2021 is significant and a confirmation that govern-ment is on the right path to providing an environment characterized by efficient in-stitutions and policies that encourage sustainable value creation by the enterprises. This holds true that while our other factors have shown an improvement, an econ-omy’s competitiveness cannot be reduced only to GDP and productivity because enterprises also have to cope with political, social and cultural dimensions. The overall competitiveness ranking at 60 out of 63 countries with a Competitiveness Score/Index Value at 40 (way below 70, which is the ideal state or “frontier” of com-petitiveness – the aggregate ideal across all factors of competitiveness) reflects a country that is incapable of managing the totality of its resources and competencies to increase the prosperity of its population.

The Competitiveness Score shows that much still has to be done to address the de-ficiencies in two competitiveness factors, namely, infrastructure (which include ed-ucation and innovation systems) ranked 60 and business efficiency (which include productivity and efficiency, and management practices) ranked 56 out of 63 coun-tries if we are to improve the competitiveness of our economy and its enterprises, particularly those in the manufacturing sector, which is an important source of em-ployment and productivity growth, and of demand for the service sector. Programme director, ladies and gentlemen, I have confidence that South Africa has the capabil-ity to improve if there is political will. This at the backdrop of the country having rec-orded a reasonably good level of global competitiveness between 2000 and 2006 averaging below 40, the best being 37 in 2001 and 2005, respectively

South Africa appreciate and welcome the long-standing partnership with the Swit-zerland based Institute of Management Development (IMD), which provide us with this valuable input (WCY, 2022) to enable us to measure and evaluate the produc-tivity and overall competitiveness of our country. The inputs by Dr José Caballero, Senior Economist, bears testimony to this valuable partnership with the IMD.

Furthermore, I am fully aware and appreciative of the role business and government plays in ensuring that data collation happens without much hindrance. My plea to our stakeholders (government, business and labour) is that we should use the IMD WCY as a basis for measuring and evaluating the productivity and competitiveness of our economy and forge social compacts to improve the performance of our enter-prises, in particular, those in the manufacturing sector, which is an important source of employment and productivity growth and, of demand for the service sector. It is without saying that this sector should be prioritised if we are to also begin pushing back the tide of joblessness that fundamentally threatens our social stability. Fo-cused policy and programme interventions implemented collectively will assist us in pushing the performance and ranking on business efficiency, which only improved from 58 in 2021 to 56.

Government and the private sector (including big companies and multi-nationals with their vast business expertise) should forge social compacts to utilise the exist-ing policies, e.g. BBBEE (without being forced to do so) by investing and participat-ing in solutions to provide meaningful employment and business development training and entrepreneurship support for young entrepreneurs. These potential en-trepreneurs require start-up capital or better access to capital and, provides investors with the biggest opportunity to participate in creating an enabling environment con-ducive for entrepreneurship and sustainable enterprises (owned by young people) which are critical for securing future growth of South Africa.

The time is now for South Africa to utilise the capability of Productivity SA to har-ness with urgency and diligence the productivity potential and capability of South Africa to improve our competitiveness and sustainable growth and to address the most persistent structural economic inequities that have existed for too long in post-Apartheid South Africa. The WCY results enables us to do so with an informed ap-proach.

It is humbling that Botswana is now part the survey. I thank the Acting Executive Director of Botswana National Productivity Centre, Mr. Teedzani Majaule and your team members present here today for sharing interesting insights on your maiden participation in the IMD World Competitiveness Survey. Maybe going forward, we should exchange notes to understand why and how you beat us. We believe that the participation of Botswana as country in the IMD WCY will encourage other PA-PA members to join.

It is our vision as the Pan African Productivity Association (PAPA) to see more Afri-can countries included in the survey. To this end, PAPA has entered into a partner-ship with the International Labour Organisation to work in collaboration with the IMD to develop a Productivity and Competitiveness Index for Africa. Much more will be revealed at the 9th PAPA General Assembly scheduled to take place on the 12 and 13 July

Lest I digress significantly, in closing I would like to take this opportunity to thank Productivity SA Chairman: Professor Mthunzi Mdwaba and the board members who graced this occasion, our Chief Economist: Dr Leroi Raputsoane and his team for also making an insightful presentation today. Without you, the event would have not happened. I thank Dr Leroi Raputsoane for playing the role of information part-ner in South Africa with due diligence, Not only are you an asset to Productivity SA but to South Africa and beyond its borders. The same goes for economist, Ms. Juliet Mashabela who is a pillar of strength. I would like to thank all the delegates, both locally and beyond our shores for their attendance. Your continued support en-courages us to serve our country better.

To my colleagues at Productivity SA, Dr Nandi Dabula and the Corporate Relations Team, thank you very much for your supportive role. The sum total of any structure is its ability to hold on all angles and the support you play is significant. Like the proverbial triangle, the strength of balance has been significantly demonstrated.
Ladies and gentlemen thank you very much.
Ke a Leboga.