Pressure on productivity

[Dave A]

Poor productivity in South Africa has always been a concern. Apparently we were making progress, but now the debt crunch is making the problem worse.

Employee debt is having a profoundly negative impact on companies as productivity dips further, a consumer expert has said.

Absenteeism and fraud, which is already at unacceptably high levels, have risen as employees battle to cope with rising debt.

Furthermore, by the third week of the month employees can't get to work for lack of cash to pay for transport.

Consumer Assist CEO Andre Snyman says workers are sabotaging companies by refusing to answer phones because they fear creditors are on the line.

Productivity SA and the 2007 IMD World Competitiveness Yearbook announced earlier this year that after a decade of sustained growth, South Africa's productivity rating fell from 38th to 50th of 55 countries rated.
full story from IOL here

[Dave A]

Seems as good a place as any to put this:

South Africa's position in the world competitiveness rankings was unchanged this year, but it could do better next year after the upgrading of infrastructure for the Fifa World Cup, according to the World Economic Forum (WEF).

The WEF yesterday released its 2009/10 global competitiveness index, ranking South Africa at number 45 out of 133 countries ranked on their overall competitiveness.
full story from Business Report here

What is particularly interesting is our strengths:

While South Africa was ranked only a third of the way down the list of 133 countries on its overall competitiveness, its financial markets shot up to 5th place, from 24th last year. The sharp improvement indicates "strong confidence at a time when trust has been eroded in many parts of the world", the WEF said.

South Africa's banking system has been one of the few not bailed out by government and central bank intervention, during the downturn that started two years ago.

South Africa's ranking was boosted by the accountability of private institutions (ranked 5), the quality of intellectual property protection (24), strong collaboration between universities and the business sector in innovation (25), good scientific research institutions (29), good market efficiency (35), business sophistication (36) and innovation (41).

And our weaknesses:

The report refers to "enduring weaknesses". Among them is labour market efficiency (for which it is placed at 90), a university enrolment rate of only 15 percent (94) and inflexible hiring and firing practices (125).

"Security remains another key obstacle to doing business in South Africa," the WEF said. On the business costs of crime and violence, South Africa came in at last place. A related issue was "the sense that the police cannot provide protection from crime" for which the country was placed 106th.

Another problem was the health of the workforce, which put the country at 127th place.

[Dave A]

Contrary to expectations in last year's report, apparently we've dropped a few places this year.

South Africa has fallen nine places in the latest global competitiveness rankings -from 45th place last year to 54th this year - but remains the highest ranked country in sub-Saharan Africa.

The World Economic Forum, in its Global Competitiveness Report 2010-2011, notes that while the country has dropped somewhat in rank since last year, its performance has in fact remained stable and that the decline reflects improvements in other countries.
full story from Business Report here

so we stood still while others passed us by - yippee

While searching to update this thread, I came across this gem from early 2007 - The Great South Africa. Oh boy - after reading that I can't help thinking we're just wasting our potential