Welcome to the ninth 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.
This issue has a focus on economic recovery plans which have been put in place to tackle the challenges thrown up by the global Covid-19 pandemic. National government’s focus on infrastructure and the use of Special Economic Zones is highlighted, together with a feature on the nascent maritime economy. 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.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.
SPECIAL FEATURE New
SPECIAL FEATURE New roads such as this link to the North West from Gauteng are important parts of infrastructural development. Credit: SANRAL Stillwater’s acquisition drive in the platinum group metals (PGM) sector are significant economic drivers. Coal and iron ore continue to be exported in large volumes through the Richards Bay Coal Terminal on the east coast and the Port of Saldanha on the west coast. Automotive manufacturing and automotive components continue to thrive, with large investments by most of the major marques and increased exports a feature of the sector. There has been inward investment in recent years, most notably by the Beijing Automotive International Corporation (BAIC) in the Coega Special Economic Zone outside Port Elizabeth. The Tshwane Automotive Special Economic Zone (TASEZ) has been launched at Silverton in Pretoria. A new SEZ has been formally declared in the northern part of Limpopo, the Musina-Makhado SEZ. The Namakwa SEZ in the Northern Cape is awaiting its licence, as is the Tubatse SEZ in eastern Limpopo. Geography South Africa’s location between the Atlantic and Indian oceans ensures a generally temperate climate. The 2 954km coastline stretches from the border with Namibia on the Atlantic to the border with Mozambique in the east. The cold Benguela current sweeps along the western coast while the warm Indian Ocean ensures that the Mozambique/ Agulhas current is temperate. South Africa’s coastal plain is separated from the interior by several mountain ranges, most notably the Drakensberg which runs down the country’s eastern flank. Smaller ranges in the south and west mark the distinction between the fertile coastal strip and the dry interior known as the Karoo. The city of Johannesburg is located on the continental divide, whereby water runs south of the city towards the Atlantic Ocean while waters to the north drain towards the north and east. Johannesburg is 1 753m above sea-level. Most of the country has summer rainfall but the Western Cape, which has a Mediterranean climate, receives its rain in winter. Droughts are not uncommon and although the national average is 464mm, most of the country receives less than 500mm of rain every year. The Western Cape experienced a severe drought which was broken in 2018. The Orange and Vaal rivers play important roles in water schemes and irrigation and the Limpopo River defines the country’s northern boundary. ■ SOUTH AFRICAN BUSINESS 2021 12
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
