For a comprehensive investment guide, click here to download a copy of South Africa: Investor’s Handbook 2014/15
Is South Africa the investment destination for you? – Investing in South Africa
The question on many investor’s mind is “what are the investment incentives when investing in South Africa?” At the southern tip of the continent, South Africa has often been referred to as the gateway into Africa, providing investors with boundless opportunities as they navigate business on the continent. According to the World Bank, Sub-Saharan Africa’s GDP is projected to rise to 5.3% by 2017, which is being driven largely by infrastructure investment, greater agricultural production as well as a strong services sector.
As Africa’s second largest economy, South Africa is also a member country of BRICS (Brazil, Russia, India, China and South Africa), and has remained an important player in the global mining value chain and a key player in assembly plants for global automotive brands.
South Africa’s well established legal and political systems and macro-economic stability, coupled with an abundant supply of semiskilled and unskilled labour makes for a favourable overall cost of doing business compared to other emerging markets. For professional jobs, labour costs are less than half of the cost of European countries. For manufacturing trade, labour costs are around one-third cost of Europe. Knowledge of the landscape can only aid investors in helping them to achieve favourable returns in a challenging economic environment.
Deloitte, together with the Department of Trade and Industry (the dti), has published South Africa: Investor’s Handbook 2014/15. This publication outlines key features of the South African landscape across all industries, listing key investment incentives that we believe will help business navigate favourably through the regulatory, social and economic environments.