With the way South African economy has been looking lately, today’s capitalist might be tempted to pack their bags and invest overseas. But are things really so bleak that you can’t even invest in your home country? Here are 10 reasons why you should consider investing in SA
- position in africa, Besides the opportunities South Africa has to offer within south african borders, South Africa’s position at the tip of Africa is key to its importance as an investment destination the country is a gateway to the rest of Africa—a continent with a market of over 1 Billion people. The economic powerhouse of the continent, South Africa forms part of the BRICS group, along with Brazil, Russia, India and China. the potential of the BRICS grouping and the African continent to build a mutually and highly beneficial partnership for development, integration and industrialisation, South africa still positioning in the global marketplace amongst global investors and strategic investment partners,
- natural resources, South Africa has a wealth of natural resources (including coal, platinum, gold, iron ore, uranium, manganese nickel and chromium) and it enjoy increased attention from international exploration companies, particularly in the oil and gas sector. Mining industry accounts for 11% of gross fixed capital formation, but also for 16% of all foreign direct investment in South Africa, According to the government, there are 35 large-scale gold mines operating in South Africa, while the country accounts for 11% of the world’s gold reserves and The South African mining industry is poised to receive more than R220 billion in investments this year, says the Mineral Resources Minister, Mosebenzi Zwane. over R220 billion-rand worth of investments in the project pipeline, which includes PGMS, industrial metals, energy and non-ferrous metals, demonstrating that South Africa remains a critical investment destination,
- Labour costs here are less than half that of European countries.
South Africa has political and macro-economic stability, an abundant supply of semiskilled and unskilled labour, and cost of labour compares favourably to other emerging markets in terms of the overall cost of doing business. For professional jobs, labour costs are less than half of the cost of European countries. For manufacturing jobs, labour costs are around one-third cost of Europe. while minimum wages in south africa £0.90 per hour (ZAR 16.25), and in The UK national minimum wage is £5.90,
- ,world class infrastructure, the government invested heavily in building or upgrading 10 world-class stadiums, and on the energy, transport and telecoms infrastructure needed to attract investors around the world, South Africa’s world-class infrastructure, exciting innovation, research and development capabilities and an established manufacturing base and rollout of new green technologies, industries and roads creating new and sustainable market for new investors, new south african infrastructure plan will result in reprioritized expenditure and new project level funding of around R50bn‚ Ramaphosa said, South Africa infrastructure now include big projects such as North-South Africa corridor Estimated to cost $1bn, the North-South Africa corridor is designed to connect eight Southern African countries with more than 10,000 km of road networks.
- Property investment is relatively stableProperty is known to appreciate in value over time. There are various factors that influence property value, A quick drive around South African major cities such as Johannesburg, Cape Town, and Pretoria reveals one unskippable future and attention from investors : amid shiny and high-rise buildings, towering cranes compete for attention as they transport hefty loads up and down new under construction buildings. It’s a familiar sight that greets you in many metros across the continent. The growth of Africa’s cities is driving demand for more commercial and residential property.
- Healthy business environment’
When its come to health of legal environment for business, There are various laws in South Africa that are used to ensure that the business works in the right way. laws are put in place to regulate the way the business is done and are meant to curb unethical business activities, The main laws that affect the business include consumer protection law, antitrust law, environmental law and the law that protect the public interest into business, Today South Africa has a sound framework for matters relating to commerce and business. The country has international standards when it comes to patents, trademarks, and copyrights.
- Independent reserve bank’ The Reserve Bank of South Africa is independent from the government so their no political meddling no fear and has stable interest rates, SARB perform its functions independently and without any fear, favour or prejudice, SARB independence is a major blockage for politicians to more radical transformation within the financial services sector, including allowing banks to maintain too tight a set of credit standards, and SARB is also, through its systematic imposition of a consistent rules-based system, seen as a blockage against bank ownership by politically connected parties, a independent reserve bank is in favour of business in many ways,
- World top universities The country has a host of universities of an international standard, including the University of Cape Town, voted the best University on the continent, UCT is an inclusive and engaged research-intensive African university that inspires creativity through outstanding achievements in learning, discovery and citizenship; enhancing the lives of its students and staff; advancing a more equitable and sustainable social order and influencing the global higher education landscape, South africa has tertiary institutions, some recognizable names are University of the Witwatersrand in heart of jozi and University of Pretoria, student of these institutions enjoy world class facilities and gain experience with students from around the world,