Presentation Prepared by Brand South Africa Research Updated - PowerPoint PPT Presentation

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

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 2

Introduction 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.

NATION BRAND PERFORMANCE

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: Global Governance Corporate Political

Nation Brand Performance – Three realms of Governance

Nation Brand Performance GLOBAL 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  Active role in transforming OAU to political settlement AU & contribution to Peace & Security on the African continent  Served 2 terms as non-permanent  Champion of New Partnership for member of the UN Security Council Africa’s Development  Plays an active role in the G20  Included as fifth member of BRICS

Nation Brand Performance POLITICAL GOVERNANCE

Nation Brand Performance: Political Governance Snapshot of key performance indicators Governance WEF – Institutions = 40/138 (2016) Indicators 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 TI’s Corruption Perception Index ● SA ranks 61 st 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 the least corrupt of the BRICS nations Table: How the BRICS Nations Scored on CPI 2015 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 �

Nation Brand Performance: Political Governance The Mo Ibrahim Index of African Governance 2016 ● An annual assessment of quality of governance in every African country South Africa ranks 6 th out of 54 countries overall ● ● Scores in the Top 10 in all four categories Sustainable Safety & Participation Human Development Economic Rule of Law & Human Opportunity Rights 2nd 7th 5th 6th Source: Mo Ibrahim Foundation, 2016/7 IIAG

Nation Brand Performance CORPORATE & ECONOMIC GOVERNANCE

Nation Brand Performance:Corporate Governance WEF Global Competitiveness Report 2016/17 SA ranks 47 th 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)

Nation Brand Performance:Corporate Governance 2016 Index of Economic Freedom SA ranks 80 th out of 186 economies, and 7 th 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 (72 nd to 69 th ), Fiscal freedom (141 st to 140 th ), Government spending (90 th to 89 th ), Property Rights (56 th to 54 th ) Challenges: Business freedom (51 st to 67 th ), Labor freedom (97 th to 100 th ), Monetary freedom (107 th to 113 th ), Investment freedom (109 th to 124 th )

Nation Brand Performance:Corporate Governance World Bank Doing Business Index 2017 SA ranks 74 th out of 190 economies ● ● 10 topics: Starting a business Protecting investors   Dealing with construction permits Paying taxes   Getting electricity Trading across borders   Registering property Enforcing contracts    Getting credit  Resolving insolvency 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

Nation Brand Performance SA INBOUND & OUTBOUND INVESTMENT PROFILE

SA Investment Profile Global FDI flow indicators: Inbound 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 Source: EY Africa Attractiveness Survey 2015

SA Investment Profile Global FDI flow indicators: Outbound EY – Africa Attractiveness Survey (2015) SA 2 nd largest investor into • Africa SA firms are leading intra- • regional investors in financial services sector • 16 projects launched in 2014 Source: EY Africa Attractiveness Survey 2015

SA Investment Profile Intra-SADC investment • 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

SA Investment Profile : Infrastructure (1) South Africa has world-class infrastructure, including an excellent transport network, low-cost energy and sophisticated telecommunications facilities 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 Infrastructure WEF – Quality of roads = 29/138 (2016) Indicators WEF – Quality of railroad infrastructure = 40/138 (2016) IIAG – Overall Infrastructure 6/54 (2016)

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 WEF – Quality of port infrastructure = 37/138 (2016) Indicators IMD – Reliable infrastructure = key attractiveness factor of the economy