Programme Director: Executive Manager: Research, Innovation and Statistics (RIS),
Productivity SA, Ms Lalane Janse Van Rensburg

Deputy Minister of Employment and Labour, Republic of South Africa: Honourable
Judith Nemadzinga-Tshabalala

Chief Economist, IMD World Competitiveness Centre: Dr José Caballero

Botswana National Productivity Centre (BNPC): Mr. Letsogile Batsetswe

National Productivity and Competitiveness Centre (NPCC)- Kenya: Mr. Boniface Mi
ano Kariuki

Acting Director. Ghana National Productivity Centre: Mr Benjamin Myers

Chairperson of the Board: Compensation Fund, Ms Dinao Lerutla

Acting CEO, Productivity SA: Ms Amelia Naidoo

Chief Economist, Productivity SA: Dr Lungelo Cele

Economic Statistician: Productivity SA, Ms Juliet Mashabela

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;

Ladies and gentlemen

Good Morning

Dumelang

Sanibonani

Ladies and Gentlemen, it is a pleasure and honour for me to welcome you to the re
lease of the 2026 World Competitiveness Yearbook (WCY). The release of these
results comes during Youth Month in South Africa. South Africa observes Youth Month
every June, culminating on National Youth Day on June 16 which we observed earlier this week.
For this year, the focus has been placed on Youth Employment. As we
speak Youth unemployment in South Africa remains a severe crisis, with rates con
sistently exceeding 40% for young adults aged 15-34.

These challenges faced by South Africa stems from multiple factors but at the core of
the situation is the “Triple Challenges” that face South Africa which is namely the
connected socioeconomic crises of poverty, unemployment, and inequality. In order
to address these challenges, the country requires a solid and competitive economy
and as I welcome you, I am quite keen to know where South Africa ‘s economic
strength lies currently as that knowledge is fundamental in tackling the various socio
economic challenges.

The annual observance of June as Youth Month honours the South African youth of
1976 who bravely protested against segregation policies that limited the youth ‘s edu
cation and development. The commemoration marks the tragic events of June 16,
1976, when thousands of students in Soweto protested against the forced instruction
of Afrikaans in schools. Multitudes of youth displayed courage with many losing their
lives in clashes with police. It was the bravery of the youths that helped liberate the
education system for future generations and today we need bravery in equal measure.

Today is but one of the measures that will help the country tackle the youth unemploy
ment holistically. As South Africa ‘s erstwhile president Nelson Mandela said “Cour
age is not the absence of fear, but the triumph over it. The brave man is not he who
does not feel afraid, but he who conquers that fear.” ― Nelson Mandela.

South Africa faces a deepening unemployment crisis as the official rate climbs to
32,7% following the loss of 345,000 jobs in the first quarter of 2026. According to the
latest labour market figures, the number of employed people fell to 16,8 million during
the first three months of the year, while the number of unemployed South Africans
rose by 301,000 to 8,1 million. In other countries, this figure is akin to having the entire
country unemployed! When we relate unemployment in percentages it often does not
put emphasis on the number of people unemployed. The situation is quite dire.

Over the past couple of years South Africa ‘s competitiveness and economic growth
have not experienced an upward trajectory that is aligned with sustainably creating
long-term employment prospects for South Africans. I hope the release of the 2026
World Competitiveness Yearbook (WCY) results provides a foundation for government
whereby when drafting policy and embarking on development initiatives, South Africa
can be governed by solid evidence that steers the ship in the right direction. I am
waiting in anticipation for Productivity SA ‘s Chief Economist, Dr Lungelo Cele and
Economic Statistician: Productivity SA, Ms Juliet Mashabela ‘s presentation on South
Africa ‘s performance.

Productivity SA is releasing the 2026 World Competitiveness Yearbook (WCY) results
produced by the Switzerland ‘s IMD which were compiled in partnership with Produc
tivity SA for the South African information. The compilation of the WCY report is in
line with Productivity SA’s mandate of leading a productivity and competitiveness
agenda in South Africa. This mandate was also confirmed and endorsed in the Eco
nomic Reconstruction and Recovery Plan particularly the priorities focusing on Indus
trialisation and Localisation as well as Macro- Economic Interventions and Enablers
for Economic Growth, where Productivity SA should provide guidance on ending wast
age including enhanced productivity and competitiveness. This necessitates that
Productivity SA should provide a baseline on productivity and competitiveness and the
WCY provides that information.

The release of the rankings helps provide a key understating on how an improvement
in productivity in the private and public sectors could help spur the economy with ben
efits such as job creation.

Productivity and competitiveness are concepts that are important to harness the en
ergy that build economies. The need exists to address these challenges via raising
national productivity and competitiveness, which is a key challenge.

The IMD ‘s Yearbook is a broad measure and the value of this survey for South Africa
is derived in seeing how the country is performing in relation to its counterparts espe
cially within BRICS. The IMD WCY rank the ability of a country to generate a condu
cive environment in which business can thrive, hence a low rating for South Africa
means that the country needs to create this environment in which business can thrive.

Productivity SA publicises the results on an annual basis to government, business and
the public to sensitise the different sections of society about the countries’ competi
tiveness in comparison to other countries. The hope is that IMD WCY results will be
factored into both government policy as well as the plans of the business community,
while also informing the public about their country by the world in terms of its compet
itiveness.

Ladies and gentlemen, I take this opportunity to welcome you to the and trust your
time here today will not be marked as time wasted. Thank you.