South Africa has ranked 83rd in the latest global index of economic freedom released by the Fraser Institute in conjunction with South Africa’s Free Market Foundation (FMF). Overall 165 countries are ranked in the index.

This is the same position South Africa was ranked last year.

The report’s breakdown shows uneven performance across the five pillars that make up the score. South Africa ranked 117th for size of government, 54th for legal system and property rights, 87th for sound money, 97th for freedom to trade internationally, and 81st for regulation

These results point to relative institutional strength in the courts but persistent drag from a large state footprint, trade frictions, and regulatory costs that weigh on growth.

Global context underscores how policy choices shape outcomes. The top performers are Hong Kong, Singapore, New Zealand, Switzerland, the United States, Ireland, Australia and Taiwan tied for seventh, Denmark, and the Netherlands, all wealthy and prosperous countries. At the other end, the lowest ranked are Chad, Libya, Syria, Argentina, Myanmar, Iran, Algeria, Sudan, Zimbabwe, and Venezuela, countries where hardship and poverty are common.

To further illustrate this point the FMF notes that per capita GDP in countries in the top 25% of economic freedom rankings was R1.15 million in 2023 compared to only R186 000 for the least economically free quartile of countries.

Said FMF CEO, David Ansara: “South Africa’s economic freedom ranking is disappointing, but not surprising. Only through widespread liberalisation, respect for property rights and limiting the size and scope of government can South Africa escape the malaise it currently finds itself in and climb the rankings in future years.”

Ansara also raised a note of concern on the pillar where South Africa performed relatively well – the country’s legal system and property rights, ranking at 54th. Said Ansara: “We’ve been doing best on legal system and property rights, but that strong ranking is in jeopardy given the existentially threatening policy of expropriation without compensation,” said Ansara.

The report notes that “economic freedom has increased since 2000, but fell precipitously following the coronavirus pandemic,” erasing years of progress. For South Africa, that global reversal meets local structural constraints. Weak scores for trade openness and regulation signal barriers that deter investment and limit firm formation, while the legal system’s mid-table ranking suggests some foundations to build on if reforms accelerate.

The path to a higher ranking is clear. Countries that streamline the state, protect property rights, open markets, and simplify rules climb the table. South Africa’s numbers make the stakes plain and the route forward clear.