By CHRISTABEL LIGAMI

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Uganda and Tanzania are among four countries in Africa that have improved their performance for five consecutive years since 2010, the World Economic Forum said in its Global Competitiveness Report 2017-2018.

The two countries have for the past seven years steadily improved in their institutions, infrastructure, macroeconomic environment, health and primary education, which are considered key elements in factor-driven economies. The other two countries are Ethiopia and Senegal.

Of the 137 countries in the Global Competitiveness Index (GCI), Rwanda ranks high in the region at 58th position globally followed by Kenya at 91, Tanzania at 113, Uganda at 114 while Burundi brings up the rear at position 129.

Kenya is among the most improved countries in Africa year-on-year, going up five places thanks to the slight improvement in the efficiency of goods, labour and financial markets.

Rwanda dropped six places since the last edition but remains among the most competitive African countries, thanks to efficient goods and labour markets and a stable political situation that supports robust GDP growth above six per cent for the next few years.

READ: Rwanda ranked most competitive economy in EA

Challenges for economic progress

The report points to three main challenges and lessons that are relevant for economic progress, public-private collaboration and policy action.

First the financial vulnerabilities pose a threat to competitiveness and to economies’ ability to finance innovation and technological adoption. Then the emerging economies are becoming better at innovation but more can be done to spread the benefits.

Lastly, labour market flexibility and worker protection are needed for competitiveness and shared prosperity.

The report has surfaced at a time when the world is confronted with sharply increasing challenges of political and economic uncertainty even though many leading global economies continue to perform well and emerging markets are still catching up

According to the report, on average, sub-Saharan Africa’s competitiveness has not changed significantly over the past decade: while a little ground was gained between 2011 and 2015, it has been partially lost again over the past two years.

Mauritius is again the most competitive country in Africa, at position 45 in the overall GCI, with its main rivals falling back. South Africa drops 14 places to 61 and Rwanda drops seven places to 58.