A unique guide to business and investment in South Africa.
Welcome to the eighth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. A special feature focusses on the huge potential for growth and job creation which the tourism industry holds. The possibilities presented by the age of renewable energy for the mining industry is the topic of another special feature and the CEO of Minerals Council South Africa responds to a set of questions on the state of mining in the country. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces.
SPECIAL FEATURE FACT
SPECIAL FEATURE FACT FILE: REPUBLIC OF SOUTH AFRICA President: Cyril Ramaphosa (African National Congress) Capitals: Pretoria/Tshwane (administrative, seat of government), Cape Town (legislative), Bloemfontein (judicial). Time: GMT+2 Life expectancy: 65.1 (female); 59.7 (male) Population: 55.91-million (2016) Life expectancy: 65.1 (female); 59.7 (male) Size: 1 220 813km² Major languages: South Africa has 11 official languages, but the main language of government and business is English. Zulu, Xhosa and Afrikaans are widely spoken. Religion: There is no state religion. The majority of the population is Christian, but many other religions are followed such as Islam, Jewish and Hindu. Currency: rand (100 cents). R15.15 = (October 2019) Resouces: Platinum, gold, iron ore, chromium, vanadium, manganese, alumino-silicates, coal, copper, diamonds, uranium, zirconium. Political system: South Africa is a republic with an executive president who is appointed by the political party that wins a majority in parliamentary elections. There are three tiers of government: national, provincial and municipal but the revenue raising capacity of the latter two spheres is limited. Allocations for health and education for example, are made by national government and then administrated by provinces. Eight of South Africa’s nine provinces are run by premiers from the African National Congress; the Western Cape Province is administered by the Democratic Alliance. The third level of government is local or municipality. In 2016 the DA came to power in three of South Africa’s biggest cities, supported by other parties such as the Congress of the People and the United Democratic Front. The Freedom Front said it would support these anti-ANC alliances on a vote-by-vote basis, but it would not sign up to a coalition. The FF has subsequently stopped supporting the DA. Legal system: South Africa is a constitutional state with separation of powers between the legal and executive authorities. All laws must pass muster with the Constitutional Court which is the ultimate court of appeal on legislation. South Africa’s legal system is based on Roman Dutch law. GDP: R4.65-trillion (9.4-billion at the average 2017 exchange rate). Exports: Precious and semi-precious stones, mineral products, base metals, vehicles, machinery, chemical products, vegetable products, fruits, foodstuffs and beverages, paper and pulp. Main export markets: China, USA, Japan, Germany, UK, India. Membership of BRICS will see focus on Brazil, Russia, India and China. Imports: Machinery, mineral products, vehicles, chemicals, original equipment, base metals, plastics and rubber, textiles, optical and medical, foodstuffs and beverages. Main import markets: China, Germany, USA, Japan, Saudi Arabia, Iran, UK, India, France, Nigeria. Infrastructure (information from dti): • 158 952km of paved roads (10th globally). South Africa is ranked 50th globally for quality of roads. • 20 986km of railways (13th globally for length of railways). • Eight sea ports including two of the world’s top container ports (Durban and Cape Town). • Two of the world’s largest dry bulk ports (Richards Bay and Saldanha Bay). • Installed generation capacity of 47.3KW, with significant excess capacity coming on stream. • Internet and personal computer penetration is the highest in the region, with 54% of individuals using the Internet. • 144 airports with paved runways. • Ranked 25th globally for Quality of Air Transport Infrastructure. ■ SOUTH AFRICAN BUSINESS 2020 18
10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA 01. HOT EMERGING MARKET Growing middle class, affluent consumer base, excellent returns on investment. 02. MOST DIVERSIFIED ECONOMY IN AFRICA South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination. LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT SA is the location of choice of multinationals in Africa. 03. Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech. 05. FAVOURABLE ACCESS TO GLOBAL MARKETS ADVANCED FINANCIAL SERVICES & BANKING SECTOR SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation. The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets. YOUNG, EAGER LABOUR FORCE 09. SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development. 07. 04. 06. 08. PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors. ABUNDANT NATURAL RESOURCES SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise. WORLD-CLASS INFRASTRUCTURE AND LOGISTICS A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index. 10. SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector. EXCELLENT QUALITY OF LIFE Page | 2 19 SOUTH AFRICAN BUSINESS 2020
