Tanzania scales up competitive ranking ladder

LYDIA SHEKIGHENDA

TANZANIA competitiveness ranking has improved, moving up nine places to 116th position from 125th in the past four years.

According to this year’s Global Competitive Report released in Dar es Salaam yesterday, Tanzania ranks 116 out of 138 countries. Briefing journalists on the report, Acting Policy Research for Development (REPOA) Executive Director, Dr Lucas Katera, said that Tanzania has been moving up for the past four years, an indication of good performance in the country’s economy.

Mr Katera told reporters that in 2013/2014, Tanzania ranked 125th out of 148 countries, while in 2014/2015 it moved four places up, raking 121st out of 144. He added that in 2015/2016, the competitiveness ranking slightly improved to 120th out of 140 countries, while in this year’s report, the country has moved up four places to 116th out of 138 countries.

“Although we are still lagging behind, here are some improvements in the country’s economy; the government needs to improve the business environment to attract more investors,” Mr Katera advised.

According to the report, Tanzania has been performing well in government stability, attracting more investors “as they are assured of their safety, improved public health, good labour regulations, policy stability and market cycle’’.

He noted that Tanzania was a member of various regional blocs such as the East African Community (EAC) and Southern African Development Community (SADC), hence guaranteeing a market for investors.

Dr Katera, however, said that there still were some challenges, which called for government action to improve the business environment in the country to attract more investors.

The challenges include access to financing, multiple taxes, poor infrastructure, corruption and bureaucracy in business registration. “The Global Competitiveness Report has helped us understand the drivers of growth.

This edition has come at a time of stalling productivity, the main determinant of future growth,” Mr Katera observed, A researcher with REPOA, Mr Cornel Jahari, said the research was conducted in Dar es Salaam and targetted large and small scale entrepreneurs.

He added that 100 business groups were involved in the research, including companies employing between 1 and 50 people and those employing from 51 people and above.

The report shows that Rwanda is the most competitive country in the EAC zone and third most competitive country in the sub-Saharan Africa after Mauritius, which ranks first, and South Africa, which ranks second. Kenya climbs to 96th, Ethiopia holds steady at 109th while Nigeria slips three to 127th.

The top three countries in terms of competitiveness in the world are Switzerland, Singapore and USA respectively.

The Global Competitiveness Report’s ranking is based on the Global Competitiveness Index (GCI), which was introduced by the World Economic Forum in 2005. According to the report, competitiveness is defined as the set of institutions, policies and factors that determine the level of productivity of a country.

GCI scores are calculated by drawing together countrylevel data covering 12 categories – the pillars of competitiveness – that collectively make up a comprehensive picture of a country’s competitiveness.

The 12 pillars are institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training and goods market efficiency. Others are labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation