The second largest economy in Africa is ranked number 72 out of 178 countries in the world.
Mienke Steytler from the South African Institute of Race Relations told CNBC Africa that South Africa was in the region of 62.6 per cent out of a 100 per cent according to the ratings.
(WATCH VIDEO: S.Africa continues downward slide on economic freedom)
“Countries that are between 80-100 per cent are considered free, those between 70 and 80 are deemed to be relatively doing well, while those between 60-70 where we are considered to be moderately well,” said Steytler.
Steytler warned that should South Africa drop by three points, the economy would fall under countries considered to be ‘not free’.
Government policy and ease of doing of doing business and labour markets contribute to the country’s free economic status.
“One of our economy’s biggest problem is unemployment especially our people who can be a huge wealth for the country,” added Steytler.
“At the Institute of Race Relations, we think that at the trajectory that we are on and the policy trajectory that the government has chosen, its proving not to be what people thought it would be.”
Steytler said her organisation was worried South Africa was going to drop into the 50 per cent bracket.
(WATCH VIDEO: SSA makes great strides in economic freedom)
She added that, it has been proven that when a country has economic freedom that helps in improving healthcare of the general citizenry, income ca pita and respect of property rights.
Steytler said South Africa was supposed to be the leading nation as far as economic freedom is considered, saying the country was slowly losing that position in the region to countries like Mauritius, Botswana and Ghana.