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

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52 | SOUTH AFRICA AS A KEY REGIONAL GATEWAY: SECTORAL DESTINATION OF GREENFIELD FDI PROJECTS IN AFRICA Announced greenfield FDI projects in Africa, by industry, 2017-2018 (USD million) Sector/industry Africa as a destination 2018 2017 Total 75 722 83 044 Primary 16 795 10 587 Mining, quarrying and petroleum 16 778 10 587 Manufacturing 32 996 20 583 Chemicals and chemical products 11 006 6 175 Coke and refined petroleum products 6 480 1 472 Food, beverages and tobacco 4 982 1 990 Metals and metal products 3 919 1 078 Services 25 932 51 874 Electricity, gas and water 5 697 37 073 Business services 5 291 2 539 Construction 4 789 5 667 Transport, storage and communications 4 243 3 656 Business services 22 734 3 733 • The manufacturing sector was the principal target of foreign investor interest for greenfield projects in Africa in 2018, with the share claimed by manufacturing projects accounting for a significantly higher 43.6% of the value of announced greenfield investments, from 24.8% in 2017. • Notable investments were targeted at chemicals and chemical products, coke and refined petroleum products, food and beverages, as well as metals and metal products. • In the primary sector (mainly mining, oil and gas), there was a substantial rise in greenfield FDI projects, benefiting from resource-seeking investments. • Although still relatively strong, announced greenfield projects in the services sector have been declining over the years. Sharp declines in the electricity, gas and water sector as well as in the construction sector resulted in a 50% fall in greenfield investment inflows in the services sectors collectively. Source (table): United Nations Trade and Development Conference (UNCTAD) World Investment Report 2019 SOUTH AFRICA AS A REGIONAL GATEWAY: AFRICA OFFERS A MYRIAD OF OPPORTUNITIES ACROSS SEVERAL SECTORS Sector Opportunity Agriculture and agroprocessing Africa has 60% of the world’s uncultivated arable land, with value-adding opportunities in the food processing sector; it has abundant water resources for energy generation, irrigation and potable water. Mining and minerals beneficiation Africa is a major player in producing various mineral resources such as platinum, chromium, diamonds, gold, bauxite, cobalt, copper, phosphate and uranium. The continent has almost 8% of the world’s oil reserves. Its enviable resource endowment provides vast opportunities for investment in mining and minerals beneficiation.
| 53 Sector Hydrocarbons, particularly natural gas Opportunity Large offshore and onshore gas reserve discoveries in, for example, Mozambique and Tanzania present huge development opportunities for energy generation, among others. Manufacturing Infrastructure There is a wide range of opportunities, including development of value chains such as petro-chemicals, food processing and beverages production, minerals beneficiation and metal products fabrication, forestry and wood processing, textiles and clothing, footwear, etc. There are many development opportunities across the infrastructure spectrum, including input requirements associated with Africa’s ongoing infrastructure and industrial development drive. Forestry and wood processing opportunities There is substantial potential in commercial forestry and downstream development in the respective value chains. Consumer goods Africa has approximately 1.3-billion consumers, a young population, rising disposable income, a growing middle class and increasingly sophisticated consumer segments. These factors are indicative of numerous opportunities for consumer-oriented industries. Banking sector/financial services There has been rapid growth in the past decade, with financial sector reforms underpinning this momentum. Information and communications technology This has been an important driver behind Africa’s economic growth in recent years, underpinned by an already substantial and rapidly expanding subscriber base. Regional integration Regional economic communities (for example, SADC, SACU, Common Market for Eastern and Southern Africa (COMESA) and East African Community (EAC)) are key drivers of economic growth, investment activity in infrastructure and productive activities, as well as intra- African trade. The African Continental Free Trade Area (AfCFTA) will bring together 54 African countries with a combined population of around 1.3-billion people.
Page 1 and 2:
THE CASE FOR INVESTING IN SOUTH AFR
Page 3 and 4:
CONTENTS 1. WHY INVEST IN SOUTH AFR
Page 5 and 6: 10 REASONS WHY YOU SHOULD INVEST IN
Page 7: | 3 WORLD-RENOWNED FOR INDUSTRIAL I
Page 11 and 12: | 7 SOUTH AFRICA AT A GLANCE • So
Page 13 and 14: | 9 SOUTH AFRICA AT A GLANCE: INFRA
Page 15 and 16: | 11 SOUTH AFRICA AT A GLANCE: SOCI
Page 19: 3. ECONOMIC OVERVIEW
Page 22 and 23: 18 | - Manufacturing output increas
Page 24 and 25: 20 | FISCAL POLICY GEARED TOWARDS F
Page 26 and 27: 22 | GLOBAL ECONOMIC DEVELOPMENTS
Page 28 and 29: 24 | RELATIVE PERFORMANCE OF SELECT
Page 31: 4. POLICY FRAMEWORK
Page 34 and 35: 30 | MICROECONOMIC POLICY INTERVENT
Page 36 and 37: 32 | INDUSTRIAL POLICY SUPPORT Attr
Page 38 and 39: 34 | TRADE POLICY: MAIN BENEFITS OF
Page 41: 5. ENABLING ENVIRONMENT
Page 44 and 45: 40 | EASE OF DOING BUSINESS: SOUTH
Page 46 and 47: 42 | ATTRACTIVE INCENTIVES TO SUPPO
Page 49: 6. OPPORTUNITIES FOR INVESTORS
Page 52 and 53: 48 | SECTORAL STRENGTHS OF SOUTH AF
Page 54 and 55: 50 | EXPORT-ORIENTED SECTORAL OPPOR
Page 59: 6.1 AGRICULTURE AND AGRO-PROCESSING
Page 62 and 63: 58 | SA GDP, 2018 WELL-ESTABLISHED,
Page 64 and 65: 60 | AGRICULTURE AND AGRO-PROCESSIN
Page 67: 6.2 MINING AND MINERALS BENEFICIATI
Page 70 and 71: 66 | A HIGHLY DEVELOPED AND DIVERSI
Page 72 and 73: 68 | BASE METALS AND METALS FABRICA
Page 74 and 75: 70 | INVESTMENT OPPORTUNITIES IN MI
Page 76 and 77: 72 |
Page 78 and 79: 74 |
Page 80 and 81: 76 | MANUFACTURING SECTOR’S EXPOR
Page 82 and 83: 78 | AUTOMOTIVE INDUSTRY: EXPORT-OR
Page 84 and 85: 80 | AUTOMOTIVE VALUE CHAIN: INVEST
Page 86 and 87: 82 | ELECTRICAL MACHINERY AND EQUIP
Page 88 and 89: 84 | CHEMICALS AND CHEMICAL PRODUCT
Page 90 and 91: 86 | CLOTHING, TEXTILES, FOOTWEAR A
Page 92 and 93: 88 | ADVANCED MANUFACTURING • The
Page 94 and 95: 90 | ADVANCED MANUFACTURING: OPPORT
Page 96 and 97: 92 |
Page 98 and 99: 94 |
Page 100 and 101: 96 | Contribution to the economy St
Page 102 and 103: 98 | BUSINESS PROCESS OUTSOURCING (
Page 104 and 105: 100 | FINANCE AND INSURANCE • The
Page 106:
102 | OCEANS ECONOMY • Several fa
Page 111 and 112:
| 107 AN EXTENSIVE INFRASTRUCTURE D
Page 113 and 114:
| 109 INFRASTRUCTURE DEVELOPMENT PL
Page 115:
GREEN INFRASTRUCTURE INVESTMENT OPP
Page 119 and 120:
SOUTH AFRICA: BUILDING PARTNERSHIPS
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