- South Africa becomes Africa's highest ranked economy in 2026 competitiveness index
- African economies performed strongest in business efficiency and weakest in infrastructure
- As global instability and fragmentation increase, strong institutions are becoming increasingly important
Six African countries are included World Competitiveness Ranking 2026 Published by Switzerland's IMD Business School on June 18, South Africa emerged as the continent's highest-ranked economy.
The ranking assesses the ability of 70 economies around the world to create and maintain a competitive business environment. It is based on four key dimensions: economic performance, government efficiency, business efficiency and infrastructure.
“The competitiveness of an economy cannot be limited to just GDP, productivity or employment. It relies on a broad matrix of political, social and cultural dimensions, measured using hard data and the perceptions of senior officials, and organized around economic performance, government efficiency, business efficiency and infrastructure.” said the Lausanne-based business and management school.
The ranking is based on 172 statistical indicators taken from international, regional and national institutions, including GDP growth, foreign direct investment, export volumes, business environment, technological infrastructure and public finances. It also includes 92 indicators from a survey of 6,900 business executives across the surveyed economies. Indicators derived from officials' perceptions assess factors that are difficult to measure, such as fraud, corruption, tax policy, rule of law, and availability of skilled labor. Each country receives an overall score on a scale from 0 to 100.
Competitiveness is changing in a volatile world
South Africa, ranked 54th out of 70 economies surveyed, overtook Kenya this year as Africa's most competitive economy. The country posted an overall score of 50.16 points and climbed 10 places compared to the 2025 edition of the rankings, driven mainly by a relatively strong performance in the business efficiency category, where it was ranked 42nd globally.
Africa's largest economy still faces a number of challenges, including sluggish GDP growth, rising public debt and infrastructure bottlenecks. Kenya, which was ranked 55th globally, is now ranked second in Africa, ahead of Ghana (64th), Botswana (66th), Nigeria (68th) and Namibia (69th). Overall, the African countries included in the ranking achieved their strongest results in business efficiency and their weakest performances in infrastructure development and government efficiency.
At the same time, IMD Business School said economies with credible institutions are better placed to deal with an unstable and fragmented world, and the drivers of competitiveness are moving away from the traditional emphasis on cost, size and output.
“Geopolitical situations are worsening and global fragmentation is increasing. Nations with their own tried-and-tested, trusted institutions have an advantage in this context because – as international systems cease to meet many national needs – businesses can carry on as normal.”said Arturo Bris, director of the World Competitiveness Center, a think tank affiliated with the institute.
The ranking also showed that Singapore, which was overtaken by Switzerland last year, regained its position as the world's most competitive economy in 2026. Hong Kong remained in second place, while Switzerland fell to third place. Taiwan and the United Arab Emirates followed. The United States, the world's largest economy, ranked 10th among the 70 economies surveyed, while China was ranked 12th.
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