Botswana’s competitiveness improves marginally

Thabo Lewanika | Tuesday June 21, 2022 06:00

From the soil: Government has prioritised greater agricultural output as a key driver of employment and self-sufficiency PIC: KENNEDY RAMOKONE

The report, released last week, indicates that Botswana was ranked 58th out of 63 countries assessed by the researchers, compared to 61st out of 64 countries in the previous version of the World Competitiveness Handbook.

The competitiveness rankings analyse countries according to how they manage their competencies to achieve long-term value creation. The assessment is conducted by examining four areas considered critical in promoting a nation’s overall competitiveness.

These four factors are economic performance, government efficiency, business efficiency, and infrastructure.

Ministry of Labour and Home Affairs chief public relations officer, Caroline Bogale said generally, the country had recorded improvements in its performance across the four factors used to produce the rankings.

Botswana’s Economic Performance factor rank improved to 60th from 62nd in 2021, while the Government Efficiency factor rank improved to 41st from 42nd in 2021. The Business Efficiency factor rank improved to 57th from 61st in 2021, and the Infrastructure factor rank improved to 61st from 63rd in 2021.

“The scores attained in these factors present a mixed picture,” Bogale said in a press statement.

A surprise finding under the Economic Performance factor was that Botswana was ranked first out of the 63 countries for its cost of living.

“These results basically indicate that despite the recent increases in prices, the cost-of-living index in Botswana is still relatively lower compared to other countries,” Bogale said.

Under the Economic Performance factor key weaknesses included the country’s export concentration by-product, exports of commercial services, and inward direct investment stocks.

Bogale noted that the Infrastructure factor was Botswana’s worst-performing factor.

“This factor assesses the extent to which tangible and intangible assets in the economy are able to meet the needs of businesses,” she said. “(However) Botswana continues to rank first on total public expenditure on education. “Unfortunately, Botswana’s higher education achievement is ranked 61st despite the country being first on total expenditure on education.”

Country competitiveness has become a central theme for both developed and developing nations. Analysts have said the world is an increasingly open and integrated economy where countries compete for investment and human capital elements which are critical for economic growth.

In light of these emerging trends in the global economy, it is important to undertake such ratings and seek improvements which will ultimately enhance the nation’s comparative and competitive advantage.