SA ranks 84th out of 165 countries on economic freedom

South Africa has been ranked 84th out of 165 countries on economic freedom, according to the Economic Freedom of the World report compiled by the Free Market Foundation and the Canada Fraser Institute. Leon Louw, President of the Free Market Foundation, spoke to CNBC Africa about the significance of this ranking. Louw emphasized the importance of economic freedom, stating that only countries with high levels of economic freedom prosper while those with low levels stagnate. He highlighted the positive aspect of South Africa moving up slightly in the ranking, indicating a step in the right direction. Louw underscored that the direction of movement is more crucial than the actual score, as it signifies progress towards prosperity. Despite the modest improvement, Louw stressed the need for South Africa to aim higher and reach levels of economic freedom that would drive growth and overcome challenges such as unemployment and the impacts of the COVID-19 pandemic. He pointed out that a belief in the country moving in the opposite direction economically is inaccurate, citing evidence of increased economic freedom in recent government initiatives. Louw called for sustained efforts to enhance economic freedom and achieve greater prosperity. He highlighted examples of countries like Hong Kong, Rwanda, and Mauritius that have made significant strides in economic freedom and experienced prosperity as a result. Louw emphasized that for South Africa to prosper, it must prioritize economic freedom and create an environment conducive to growth.