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BRAND SOUTH AFRICA Nation Brand Performance Presentation Prepared by Brand South Africa Research Updated November 2016 ABRIDGED VERSION 1

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Page 1: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

BRAND SOUTH AFRICA

Nation Brand Performance

Presentation

Prepared by Brand South Africa Research

Updated November 2016

ABRIDGED VERSION

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Page 2: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

Contents

● Nation Brand Performance – three realms of governance

– Global governance

– Political governance

– Corporate & economic governance

– Top five Ease of Doing Business destinations vs South Africa

– SA inbound & outbound investment profile

– Human & social development indicators

Presentation prepared by Brand SA.

Readers are welcome to use the data contained in this report for their own purposes provided they acknowledge

the source as: Brand South Africa, Research & Nation Brand Performance Presentation, November 2016, available

at: www.brandsouthafrica.com

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Page 3: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

The following presentation provides an abridged overview of Brand South

Africa’s Nation Brand Performance Monitoring.

Focussing on three realms of governance – global, political and

economic/corporate – it aims to profile the competitive strengths,

advantages and challenges of the Nation Brand.

It includes perspectives on country performance from a number of indices,

such as the WEF Global Competitiveness Index; the Ibrahim Index of

African Governance; the World Bank Doing Business Index, and the UNDP

Human Development Index to name a few.

Please note that the full pack of slides profiling the Nation Brand consists

of the following: Global Governance; Political Governance; Corporate &

Economic Governance; Nation Brand performance SWOT Analysis; and

Nation Brand profiling.

For the full report, please register on the Knowledge Hub.

Introduction

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NATION BRAND PERFORMANCE

Page 5: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

Nation Brand Performance

● Governance plays a critical role in shaping the reputation of the

Nation Brand

● For this reason the Brand South Africa Nation Brand Performance

presentation is anchored by perspectives on governance in 3

realms of activity:

Governance

Global

Political Corporate

Page 6: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

Nation Brand Performance – Three realms of Governance

Page 7: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

GLOBAL GOVERNANCE

Nation Brand Performance

Page 8: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

Nation Brand Performance – Global Governance

The Nation Brand’s global and domestic reputation is to a large extent

shaped by perceptions of efficient internal governance, while the

nation brand’s contribution to global governance has a direct bearing

on international perceptions

Global Governance Contribution

Peaceful internally negotiated

political settlement

Active role in transforming OAU to

AU & contribution to Peace &

Security on the African continent

Served 2 terms as non-permanent

member of the UN Security Council

Champion of New Partnership for

Africa’s Development

Plays an active role in the G20 Included as fifth member of BRICS

Page 9: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

POLITICAL GOVERNANCE

Nation Brand Performance

Page 10: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

Snapshot of key performance indicators

Governance Indicators

WEF – Institutions = 40/138 (2016)

WEF – Financial Market Development = 11/138 (2016)

IMD – Government Efficiency = 40/60 (2016)

Open Budget Index = 3/102 (2015)

World Press Freedom Index = 39/180 (2016)

Nation Brand Performance: Political Governance

Page 11: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

TI’s Corruption Perception Index

● SA ranks 61st of 168 countries with a corruption score of 44(moderately corrupt) in 2015 CPI

● SA outranks BRICS counterparts. With a score above 40, it is theleast corrupt of the BRICS nations

Nation Brand Performance: Political Governance

Rank Country 2015 Score 2014 Score 2013 Score 2012 Score

61 South Africa 44 44 42 43

76 India 38 38 36 36

76 Brazil 38 43 42 43

83 China 37 36 40 39

119 Russia 29 27 28 28

Table: How the BRICS Nations Scored on CPI 2015

Page 12: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

The Mo Ibrahim Index of African Governance 2016

● An annual assessment of quality of governance in every African country

● South Africa ranks 6th out of 54 countries overall

● Scores in the Top 10 in all four categories

Nation Brand Performance: Political Governance

Safety &

Rule of Law

Sustainable

Economic

Opportunity

Participation

& Human

Rights

Human

Development

2nd 6th5th7th

Source: Mo Ibrahim Foundation, 2016/7 IIAG

Page 13: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

CORPORATE & ECONOMIC

GOVERNANCE

Nation Brand Performance

Page 14: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

WEF Global Competitiveness Report 2016/17

Nation Brand Performance:Corporate Governance

● SA ranks 47th out of 138 economies, SA & Mauritius are top African performers

● 12 competitiveness pillars:

Institutions Labor market efficiency

Infrastructure Financial market development

Macroeconomic environment Technological readiness

Health and primary education Market size

Higher education and training Business sophistication

Goods and market efficiency Innovation

Strengths: Financial market development (11), Market Size (30), Institutions (40), Business sophistication (30), Goods and market efficiency (28)

Improvements: Technological readiness (50 to 49), Innovation (38 to 35), Labour market efficiency (107 to 97), Macroeconomic environment (85 to 79), Health & Primary education (126 to 123), Infrastructure (68 to 64), Labour Market Efficiency (107 to 97)

Challenges: Higher Education & Training (83 to 77)

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2016 Index of Economic Freedom

Nation Brand Performance:Corporate Governance

● SA ranks 80th out of 186 economies, and 7th freest in the region.

● 10 freedoms grouped into four categories:

RULE OF LAW GOVERNMENT SIZE

Property Rights Fiscal freedom

Freedom from Corruption Government spending

REGULATORY EFFICIENCY OPEN MARKETS

Business freedom Trade freedom

Labor freedom Investment freedom

Monetary freedom Financial freedom

Strengths: Financial freedom (38/186)

Improvements: Freedom from corruption (72nd to 69th), Fiscal freedom (141st to 140th), Government spending (90th to 89th), Property Rights (56th to 54th)

Challenges: Business freedom (51st to 67th), Labor freedom (97th to 100th), Monetary freedom (107th to 113th), Investment freedom (109th to 124th)

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Starting a business Protecting investors

Dealing with construction permits Paying taxes

Getting electricity Trading across borders

Registering property Enforcing contracts

Getting credit Resolving insolvency

World Bank Doing Business Index 2017

● SA ranks 74th out of 190 economies

● 10 topics:

Nation Brand Performance:Corporate Governance

Strengths: Protecting investors (22/190), paying taxes (51/190), resolving insolvency (50/190), Getting credit (62/190)

Improvements: Resolving insolvency (51 to 50/190)

Challenges: Starting a Business (131), Registering Property (105), Trading across Borders (139), Getting Electricity (111), Enforcing Contracts (113), Dealing with construction permits (99)

Source: World Bank (2016): Doing Business 2017: Equal Opportunity for All

Page 17: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

SA INBOUND & OUTBOUND

INVESTMENT PROFILE

Nation Brand Performance

Page 18: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

Global FDI flow indicators: Inbound

EY – Africa Attractiveness Survey (2015)

SA Investment Profile

Source: EY Africa Attractiveness Survey 2015

• SA is the top destination for FDI projects –

attracting 121 projects in 2014

• It was the favourite destination for

Chinese projects, securing 34.4% of total

Chinese investment on the African

continent

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Global FDI flow indicators: Outbound

SA Investment Profile

Source: EY Africa Attractiveness Survey 2015

• SA 2nd largest investor into

Africa

• SA firms are leading intra-

regional investors in financial

services sector

• 16 projects launched in 2014

EY – Africa Attractiveness Survey (2015)

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Intra-SADC investment

SA Investment Profile

• South Africa plays pivotal role in the

economic revival of the continent

• Contributes 68% of SADC GDP

• SA invested USD1,4b in 75 new FDI

projects in Africa (2012)

• Created 50,000 jobs Africa-wide

Source: Inside Southern Africa, September 2015

Page 21: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

SA Investment Profile : Infrastructure (1)

Road and Rail Transport

A massive motorway improvement scheme has seen extra

lanes added, a sophisticated electronic toll system

introduced and interchanges drastically renovated

The Gautrain rapid rail system links the OR Tambo

International Airport with stations in Johannesburg and

Pretoria

South Africa has world-class infrastructure, including an excellent transport network,low-cost energy and sophisticated telecommunications facilities

Infrastructure

Indicators

WEF – Quality of roads = 29/138 (2016)

WEF – Quality of railroad infrastructure = 40/138 (2016)

IIAG – Overall Infrastructure 6/54 (2016)

Page 22: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

SA Investment Profile : Infrastructure (2)

Ports

Most advanced port infrastructure on the African continent

Saldanha Bay in the Western Cape is the largest natural

anchorage with the deepest water, 60 nautical miles

northwest of Cape Town

The Durban port in KZN handles the greatest volume of sea-

going traffic of all SA ports

The Richards Bay Port in KZN can handle a total of 1 782

ships with a gross tonnage of 65 994 515 in a year

The Port Elizabeth Port in the Eastern Cape handled a total

of 976 ships during the 2015 calendar year

The Cape Town Port in the Western Cape competes with

Alexandria for recognition as the most famous port in Africa

Infrastructure

Indicators

WEF – Quality of port infrastructure = 37/138 (2016)

IMD – Reliable infrastructure = key attractiveness factor of the economy

Page 23: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

SA Investment Profile : Infrastructure (3)

Air Transport

OR Tambo International caters for 19 million passengers

annually

Airports Company of South Africa (ACSA) operates 9 airports,

which handle more than 200 000 aircraft landings

The numbers all add up to ACSA being Africa’s premier airports

authority

Infrastructure

Indicators

WEF – Quality of air transport infrastructure = 10/138 (2016)

WEF – Available airline seat km/week, millions* = 28/138 (2016)

IIAG – Air transport = scores 97/100 (2016)

Page 24: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

HUMAN & SOCIAL

DEVELOPMENT INDICATORS

Nation Brand Performance

Page 25: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

Human & Social Development Indicators

● Since the dawn of democracy, and regardless of economic challenges in

recent years, SA has been making steady progress on the front of human &

social development

● The UNDP’s Human Development Index (HDI) charts SA’s progress as follows:

Nation Brand Performance

Source: UNDP, Human Development Report 2015

SA’s HDI trends 2011-2015

Page 26: BRAND SOUTH AFRICA Nation Brand Performance Presentation€¦ · For this reason the Brand South Africa Nation Brand Performance presentation is anchored by perspectives on governance

Prepared by Brand SA Research

Contact:

Dr Petrus de Kock, GM – Research

[email protected]

Dr Judy Smith-Höhn, Research Manager

[email protected]

Leigh-Gail Petersen, Researcher

[email protected]

Readers are welcome to use the data

contained in this report for their own

purposes provided they acknowledge the

source as: Brand South Africa, Research &

Nation Brand Performance Presentation,

November 2016, available at:

www.brandsouthafrica.com

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