MARKET RESEARCH COUNTRY REPORT

SOUTH AFRICA

CONTENTS

Main Industry SectorsEconomic OverviewForeign Direct Investment [FDI]FDI Government MeasuresCountry Strong PointsCountry Weak PointsForeign Trade Overview

MAIN INDUSTRY SECTORS South Africa has a subsoil rich in mineral resources.

South Africa is the world's largest producer and exporter of gold and platinum and the 5th

largest producer of diamonds.

South Africa produces 70% of the world's platinum and also has 60% of the world's coal

reserves.

South Africa diverse manufacturing industries and is a world leader in several specialized

sectors, including railway rolling stock, synthetic fuels, mining equipment and machinery.

The services sector is flourishing (almost two thirds of the GNP) and tourism should continue

to grow after the stimulus it has received from the World Football Cup. 

Agriculture only represents a small part of the GNP but employs 30% of the country's active

population.

South Africa is the 6th largest producer of wine in the world.

South Africa has a sophisticated financial structure with an active stock exchange that ranks

among the world's top 20 in terms of market capitalization.

South Africa has to be pointed out that the Rand weakened considerably during the financial

crisis.

The South African government has put in place funds to support companies to guard

against a higher depreciation.

ECONOMIC OVERVIEW

South Africa is the economic giant of the African continent, contributing nearly 40% to

the total African GDP.

In the secondary sector, 75% of the biggest African companies are South African.

Rebinding after the severe international economic crisis and enjoying the benefits of the

organization of the World Football Cup in 2010, the South-African economy  has

experienced a slight recovery in 2010, with an estimated growth at 3%, with an

expectation of a speedier growth in 2011. 

The government is mainly focusing on the construction of infrastructure, support of the

industry, improvement of labor skills, on speeding up the agricultural reform and

reducing criminality.

After pursuing the policy of economic stimulus in 2010, the government is planning to

tighten its budgetary policy in 2011 and reduce non-priority expenses in order to

contain the deficit.

Unemployment, which affects nearly a third of the country's active population and AIDS

(infecting nearly 12% of the population) are a cause for major concerns to the country's

overall economic development.

A third of the population continues to live below the poverty line and social inequalities

remain high. 

FOREIGN DIRECT INVESTMENT [FDI]

Being largely a free-market economy, South Africa encourages foreign investment in both private and

public sectors.

Factors attracting FDI into the country include: transparent regulatory framework, large population,

access to raw materials and political stability.

According to the UNCTAD World Investment Report, the potential appeal for foreign investment in

South Africa is strong compared with other countries in the world, but performances are poor in terms

of FDI attraction.

The global financial crisis which affected the world at the end of 2008 - beginning 2009,

South Africa is suffering from the lack of foreing investor interest and the net capital export is

higher than the income

FDI GOVERNMENT MEASURES

Nearly all the business sectors are open to foreign investors.

No government approval is required, and there are almost no restrictions on the form or the

extent of foreign investment.

Other measures taken by the government are simple tax rules, investment incentives, a

better regulatory policy on competition, protection of intellectual rights.

We can quote : 

The Foreign Investment Grant up to 15% of the value of new machinery and equipment;

The Skills Support Program which provides up to 50% of training costs and 30% of

workers salaries;

The Strategic Industrial Project program which offers tax allowances; and 

The Small and Medium Enterprise Development Program which offers tax free grants.

 With 23.5% unemployment, Jacob Zuma recognizing that the recession had delayed

economic recovery and the private sector's capacity to create new opportunities,

announced the remittance of some 303 million dollars in order to help company heads

and employees who were in trouble due to the crisis

COUNTRY STRONG POINTS

South Africa has high market potential, developed infrastructures and a reasonably

competitive domestic economy.

South Africa has put into place economic reforms, which have led to macro-economic

stability, tax and customs reduction. It also has a large and active stock exchange.

South Africa has shifted from its traditional industries to production and financial

services which are the main contributors to the GDP. Tourism and the retail sector have

great potential.

COUNTRY WEAK POINTS

South Africa has a certain amount of weaknesses:

High rate of criminal violence and corruption,

A highly regulated labour market and poor or unclear regulations in

some of the key sectors like telecommunications.

These factors contribute negatively to foreign investment.

FOREIGN TRADE OVERVIEW

South Africa is very open to international trade.

The share of international trade in the country's GNP exceeded 64%, an increase

of almost 20% over the last 4 years.

The three top trade partners of South Africa are: the United States, Japan, and

the European Union.

The beginning of the world economic crisis, the country's exports remain weak,

while import is steadily increasing, leaving the trade balance in deficit.

RELATED SOUTH AFRICAREPORTS

Market Opportunities of products and Services in South Africa.

Export and investment sector opportunities in South Africa..

Overview of Trade Regulations, Customs and Standards South Africa..

South Africa Investment guide for beginners.

Business and Project Financing in South Africa..

Business Travel Advisory in South Africa..

Visit us to download for related reports

COUNTRY LIST China Mexico United States India Canada Russia Hong Kong Colombia Brazil Turkey Indonesia Egypt Singapore United Kingdom Italy Japan

Australia

Germany France Spain South Korea Vietnam Saudi Arabia Poland South Africa Nigeria Argentina UAE Netherland Sweden Thailand Israel and more….

Buy 2 reports get 1 report FREE

International Market Research Report on 300+ topics over 100 countries

Need additional reports ?

Market Size

Market access strategies

Market Share

Import and Export information

Market Analysis

Market Trends

Competitions

Domestic production Best sales prospects

Statistical data

Tariffs and regulations

Distribution and business practices

End user analysis

Trade shows and contact points

Instant online

Delivery

Thanking for downloading

For more information visit us

www.worldresearchreport.com

Or Email us

worldresearchreport@gmail.com