South Africa is located in the most southern part of Africa, the country boarders Lesotho, Swaziland, Namibia and Mozambique. The country is diverse with many different ethnicity for instance African, Asians, Europeans and so on.
Population 58,152,066 million people
Total area of 1.22 million km²
GDP $371.298 billion US dollars as of 2018
Currency South African rand
Language English, zulu, Afrikaans
Capital requirement 300,000USD
It takes 3-20 working days to get business permits, working visa and temporary residence.
Why invest in South Africa ?
South Africa is one of the economically stable countries on the African continent, the country is part of the BRICS group of countries with Brazil, Russia, India and China. It has a favorable demographic profile and its rapidly expanding middle class has growing spending power.
The country is political and macro-economic stability, with an abundant supply of semiskilled and unskilled labor, and it compares favorably to other emerging markets in terms of the overall cost of doing business.
South Africa has plenty of natural resources such as gold, uranium, coal, iron, platinum, ore, manganese nickel, and chromium and it enjoys increased attention from international exploration companies, particularly in the oil and gas sector.
South Africa has set up investment incentives and industrial financing interventions that are aimed at encouraging commercial activity and its trade rules favor a further expansion in South Africa’s burgeoning levels of international trade.
South Africa is a destination of foreign investments and trade becoming one of the increasing countries with increasing trade in the world this is due to the country ensuring that it can meet specific trade and investment requirements of prospective investors.
Starting a business in South Africa.
Starting a business in South Africa is very easy.
Business and work permits are needed to set up a business in South Africa.
Normally a range of administrative procedures have to be complied with. Having obtained business and work permits (applies to foreigners only).
The company must be registered with the South African Registrar of Companies in Pretoria within 21 days of the company being started.
Doing Business in South Africa.
South Africa is among the top countries in Africa that makes it where doing business is not bureaucratic it beats most of the countries in Europe and Asia thus making it an investment destination.
Improved infrastructure with the increase research and innovation with development capabilities . The country is the forefront of the development and roll out of new green technologies and industries, creating new and sustainable jobs in the process and reducing environmental impact.
South Africa has a diverse and promising emerging markets globally. Strategically located at the tip of the African continent, South Africa is a key investment location, both for the market opportunities that lie within its borders and as a gateway to the rest of the continent, a market of about 1- billion people.
South Africa has sophisticated financial, legal and telecommunications sectors, and a number of global business process outsourcing (BPO) operations are located in the country.
The scenic beauty and reputation for delivering value-for money make it an attractive leisure and business travel destination.
Economic zones in South Africa.
Saldanha bay Western Cape
It is an oil, gas and marine repair engineering and logistics services complex, servicing the upstream oil exploration industry and production service companies operating in the oil and gas fields off Sub-Saharan Africa.
Coega Eastern Cape
Coega, is in the Nelson Mandela Bay Metropolitan Municipality on the East-West trade route to service both world and African markets. It has attracted investment in the Agro-processing, automotive, aquaculture, energy, metals logistics and business process services sectors.
Platinum Valley SEZ, North West
The main hub of the Platinum Valley SEZ is to be housed in a 100 hectare site of the Bodirelo Industrial Park. The industrial park is located near the town of Mogwase in the Bojanala Platinum District of the North West Province. The site will be developed in three phases comprising of a logistics park, light manufacturing space and a heavy industries manufacturing space.
East London, Eastern Cape
The zone has become a prime industrial park, renowned for its customised solutions for various industries, including automotive, agro-processing and aquaculture. It is an ideal location of exported manufacturing and processing, providing investors with connections to major markets, locally and across the globe.
Nkomazi Special Economic Zone
The zone has been formalized to provide a competitive and highly efficient industrial Cluster that position itself as the leading location for Agro-processing, and Logistics services activities within South Africa, in response to investor demand.
Richards Bay, Kwazulu Natal
This industrial estate is on the north-eastern South African coast. The N2 business corridor links the province’s two major ports of Durban and Richards Bay, and connects with Maputo in Mozambique and, ultimately, areas of East Africa. With prime rail and road access, this zone is a portal to the world.
Maluti –A-Phofung, Free State
This zone in Harrismith is at the mid-point of the crucial Durban-Johannesburg route, offering access to the port of Durban as well as logistics for the transfer of freight between road and rail.
Principal Taxes Tax rate
Corporate income tax 30%
Turnover Tax (TOT) 0% and 3%
Income tax from Employment 10.5%
With holding taxes 2 %
Value added tax 14%
Dividend tax 15%
The Promotion and Protection Investment Bill facilitates a dispute prevention approach to investment; however investors retain full legal rights to pursue any avenue available under South African law.
Guarantee against expropriation or nationalization the government does not have any right to confiscate investors property , merchandise in an unappropriated manner.
South Africa grants a privilege to investors to fully repatriate their profits, dividends, principal and interest.
The right to employ expatriate managers and experts.
Double taxation avoidance treaties with some countries due to the fact that South Africa is a member of some trade associations across the world.
Foreign investment grant, this compensated qualifying investors for the cost of moving qualifying new machinery and equipment to South Africa.
Industrial Development Zones. Investors operating from the development zones are exempted from VAT when sourcing goods and services from South African customs territory and duty-free imports of raw materials and inputs for export.
The enterprise Investment Program (EIP) is a cash grant for locally based manufacturers who wish to establish a new production facility , expand existing facility in the clothing and textiles sectors.
Tax allowance the government of South Africa set up tax deductions on certain projects if investors wish to invest in them.
Business Processing Outsourcing investment incentive is a grant and training support to cover the costs of company –specific training. This reduces on the training costs incurred by the investors.
Foreign companies in South Africa.