“Although the rank has gone up two places, the performance, if you look at the score, the country’s performance is likely worse than last year actually. The rank looks at the relative position and the score looks at the performance over time,” explained Crotti.
Crotti said Zimbabwe’s business environment has proved challenging to operate in for local as well as foreign businesses, due to the country’s monetary and fiscal standing which have affected overall macro-economic performance.
“For example, the budget deficit is now at 10% and the government debt is 75%, which are affecting substantially the conditions for businesses to operate in Zimbabwe right now.”
The GCI ranking is determined by the performance of 12 pillars or drivers of competitiveness, that collectively define a country’s rating. The 12 pillars are: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.
Crotti said in almost every pillar, Zimbabwe is not doing well.
“Zimbabwe ranks quite low on many factors, including innovation, of course (132), also on education (116), and infrastructure (116) and institutions (114),” said Crotti.
Elaborating on the 12th pillar – innovation, despite Zimbabwe’s efforts to be on the cutting edge of innovation, Crotti said it [Zimbabwe] is still lagging behind where it comes to technical capacity, quality of scientific research institutions, availability of scientists and engineers, investment in research and development, and production of patents.
“There we don’t see extraordinary…