Durban — Majority of WEF delegates growing impatient with Nepad's slow progress

As leading African political and business figures gathered yesterday to argue the case for greater investment in the continent, a World Economic Forum (WEF) survey has found growing optimism about the continent's economic outlook.

But there was mixed news for SA which scored lower in the survey than three other African states Botswana, Tunisia and Gambia due to perceptions of its high crime rate, especially organised crime, and corruption.

The survey found that while the vast majority of respondents see the New Partnership for Africa's Development (Nepad) as central to Africa's future success, more than three-quarters of participants are growing impatient with its slow progress.

More than 600 delegates from about 40 countries are meeting in Durban for the WEF's annual summit, which focuses on Nepad. The forum hopes the gathering will help turn Nepad's plans into actions.

The WEF survey that forms part of the WEF's competiveness rankings of African countries is based on the quality of public institutions.

The findings of the survey, which for SA highlight the high cost of crime, were released as key regional leaders, including President Thabo Mbeki and Mozambique President Joaquim Chissano, together with top businessmen, gathered in Durban.

Concerns about organised crime in the country, a particular sub-index on which SA was placed 17 out of 21 countries surveyed, may tip the balance when it comes to investment.

The survey saw Botswana leading the race as having the best corporate governance of the African countries surveyed, followed by Tunisia and Gambia.

Daniel Kaufmann of the World Bank Institute said the survey focused on issues that were critical to the competitiveness of countries, holding sway over investment and poverty alleviation.

"It shows that governments can be measured (on these issues)," he said.

Botswana's credit rating from Moody's as well as Standard and Poor's is better than SA's.

SA's overall position was heavily dragged down by its ranking of only 17th in a sub-index of contracts and law, which the WEF says reflects high variable costs due to organised crime.

SA's rating on the influence of organised crime has deteriorated, with SA's score dropping from 3,9 to 3,52.

Businessmen surveyed see the influence of organised crime as greater in only Uganda, Kenya, Mozambique, and Chad.

The countries with lowest ranking in the public institutions index are Nigeria at number 20 and Chad in position 21.

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