INVESTMENT
Dubbed Africa’s economic powerhouse, the country’s attractive business climate, characterized by relatively low operating costs and a robust regulatory framework, makes it an appealing destination for businesses looking to expand into the African market. Monetary and fiscal policies are key areas of interest for investors, reflecting South Africa’s commitment to economic stability and growth.
As a preferred investment destination, South Africa has the largest presence of multinational companies in Africa which leverage the supportive ecosystem that houses the affluent consumer base and growing middle class. Furthermore, the Economic Reconstruction and Recovery Plan (ERRP) enhances the country’s appeal as an investment haven as it clearly articulates and outlines strategies for post-pandemic economic recovery.
The African Continental Free Trade Area (AfCFTA) officially commenced trading under the agreement on 1 January 2021.South Africa ratified the AfCFTA agreement in 2019, thus positioning it for wider access to new market opportunities under the agreement.
South Africa is an attractive location for foreign investors requiring access to the rest of the African continent as they can leverage on:
- The country’s well-developed industrial ecosystem and diversified economy, particularly its established manufacturing sector and value chains.
- A world-class physical infrastructure and extensive transport and logistics network, which is strongly integrated with other southern African countries, including advanced ICT infrastructure.
- Other competitive advantages, such as a supportive operating environment, a favorable trade regime, sophisticated and sound financial markets, and the availability of key production inputs.