433369666-The-Case-for-Investing-in-South-Africa

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African Continental Free Trade Area (AfCFTA):
• Signed by 54 out of the 55 member states of the African Union, the AfCFTA agreement entered into force on 30
May 2019. South Africa signed the AfCFTA on 1 July 2018 and ratified it on 10 February 2019.
• The AfCFTA will create a market of approximately 1.3-billion people and a USD2.3-trillion GDP economic bloc
that will boost intra-African trade and investment, and unlock industrial development.
• The AfCFTA’s main objectives are to integrate Africa’s markets for goods and services, harmonise regimes for
trade in goods and services and thereby enhance intra-Africa trade and investment:
- Through the progressive elimination of tariffs;
- by setting up rules to manage non-tariff barriers;
- by facilitating cooperation on customs, trade facilitation and transit; and
- by enhancing cooperation on technical barriers to trade, including sanitary and phytosanitary measures.
SOUTH AFRICA WITHIN THE GLOBAL GOVERNANCE FRAMEWORK
South Africa, as a meaningful contributor to global
governance, adds to its investment appeal
• South Africa has instituted a peaceful, internally-negotiated
political settlement.
• The country has served two terms as a non-permanent
member of the UN Security Council.
• South Africa plays an active role in the G20.
• South Africa played an active role in transforming the OAU
(Organisation of African Unity) into the current AU (African
Union), as well as in the facilitation of peace and security on
the African continent.
• South Africa is a champion of the New Partnership for
Africa’s Development (NEPAD).
• South Africa is positioned to leverage strategic partnerships
with Brazil, Russia, India and China as the fifth member of
the BRICS bloc of economies.
South Africa has a sound political governance
framework
• South Africa’s political governance framework ranks
favourably vis-à-vis most African countries.
• The Mo Ibrahim Index of the quality of governance in
Africa ranked South Africa 7 th out of 54 countries for
overall governance quality in 2018.
• South Africa ranked in the top 10 in all of the four
sub-categories of the Mo Ibrahim Index. These include
(South Africa’s ranking in parentheses):
- Sustainable economic opportunity (4 th );
- Safety and rule of law (7 th );
- Participation and human rights (4 th ); and
- Human development (8 th ).
South Africa is an active global citizen
MAIN BENEFITS OF SOUTH AFRICA’S PARTICIPATION IN BRICS
BRICS (Brazil, Russia, India, China, South Africa)
• The BRICS grouping is an increasingly influential body in the world, representing 42% of the global population,
accounting for 23.6% of the world’s GDP in 2018, and covering 25% of the Earth’s surface.
• The BRICS countries seek to influence and/or reform global governance and economic relations.
• BRICS operates on a more equal and balanced development partnership in the relations between major
developing countries and their smaller, developing counterparts.
• Other BRICS member states are important destinations for South African exports, collectively accounting for
ZAR182.9-billion (14.7% of total South African merchandise exports) in 2018.
• The New Development Bank was established to mobilise resources for infrastructure and sustainable
development projects in BRICS. The New Development Bank offers South Africa and the rest of Africa access
to funds for infrastructure development.
• The BRICS Business Council is an important facilitator of FDI and trade opportunities.
• The BRICS countries have adopted the MSME Cooperation Framework. This will permit micro-, small- and
medium-enterprises (MSMEs) in the partner countries to exchange information and best practices on
regulation, financial and export support, as well as to cooperate on international projects.