Ethiopia has been ranked 119th out of 139 countries in Global Competitiveness ranking report released by the World Economic Forum.
Switzerland is ranked as the most competitive country to do business followed by Sweden, Singapore and the United States. Tunisia ranks as the most competitive in Africa followed by South Africa and Mauritius.
According to the report Ethiopia’s notable competitive advantages include Protection of minority shareholders’ interests, Quality of air transport infrastructure, Total tax rate, Number of procedures required to start a business and Female participation in labor force.
The top five most problematic factors for doing business in Ethiopia are Foreign currency regulations, Access to financing, Inflation, Inefficient government bureaucracy and Corruption.
Ethiopia ranks dead last (139 out of 139 countries) in Mobile telephone subscriptions, and ranks 60th in Quality of roads. Ethiopia’s High inflation hurts the country’s macroeconomic environment, according to the report.
The Global Competitiveness Index (GCI), developed for the WEF by Columbia University economics professor Xavier Sala-i-Martin, is based on “12 pillars of competitiveness” – institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.
The rankings are calculated from publicly available data and the WEF’s Executive Opinion Survey, which polled 13,500 business leaders in 139 economies.