GROW WITH SOUTH AFRICA

A recent South Africa Global Reputation Perception Study across benchmark countries, including the United Kingdom, United States, Germany, France, China, Japan, India, Switzerland, United Arab Emirates, Saudi Arabia, Nigeria, Egypt, Vietnam, Thailand, Turkey, Chile and Brazil undertaken by Spain’s nation branding firm, Bloom Consulting has established that South Africa is one of the most prosperous Nation Brands offering outstanding experience in Trade, Talent and Tourism brand dimensions.

 

InvestSA, South Africa’s pre-eminent investment promotion agency, is a one-stop shop for investors seeking growth opportunities in South Africa.

 

Whether you are a prospective investor looking to invest in South Africa, to expand your investment in South Africa or to invest in Africa through the gateway South Africa represents to the continent, InvestSA will guide investors through all the stages of their investment process with practical information, specialised assistance and right connections to facilitate the business establishment and expansion plans.

South Africa boasts a diversity of investment and growth opportunities for new and established investors spread across key sectors in the nine provinces.

FORESTRY
South Africa has a well-established Forestry sector with a fully integrated value chain including pulp, paper and furniture manufacturing. Forestry and forest products contributed about $5.2 million and $1.5 billion respectively to South Africa’s economy in 2017. Across five provinces, South Africa has about 1.2m hectares of afforested land, accounting for 1% of South Africa’s total land area. Pine (49.6%), eucalyptus (43%) and wattle (7%) are the most commonly cultivated tree species on South African plantations. According to StatsSA, wood and wood products, paper, paper products and furniture manufacturing contributed about $7.8 billion to the local economy.

To #GrowWithSouthAfrica, visit http://www.investsa.gov.za/grow/

MINING & MINERAL
Mining and mineral beneficiation plays a pivotal part in South Africa’s economy. The country’s mineral reserves are among the most valuable in the world. South Africa has the world’s largest reserves of platinum group metals (PGMs) and manganese, and some of the largest gold, diamonds, chromite ore and vanadium deposits. South Africa’s mining industry is the fifth largest globally in terms of gross domestic product (GDP).

 

The mining sector contributed $20.8 billion or 7.3% to South Africa’s GDP and accounted for 25% of the country’s total export earnings. Platinum, coal and gold are the three largest mining exports. In 2018, the mining industry contributed $5.4 billion to fixed investment, which constituted 17% of private sector investment and 10.5% of total fixed investment, respectively. South Africa’s well-integrated mining value chain supplies inputs into various manufacturing sectors including metal fabrication, automotive and jewellery manufacturing.

 

To #GrowWithSouthAfrica, visit http://www.investsa.gov.za/investsa/

AGRIBUSINESS
Agribusiness has long been a focus area for growth and development by the South African Government. The country enjoys a well-developed and globally competitive sector which has led to the creation of a sophisticated and elaborate value chain ranging from agricultural inputs, equipment, packaging, and specialised logistics. This sector provides the opportunity for both local and export markets and is a contributor to much needed job creation.

 

One prominent feature of Agribusiness is its continuous pursuit of new technologies. These technologies boost efficiency by reducing wasted resources, saving time and improving output. Skills development in Agribusiness should be seen more as an investment to serve the strategic aspirations of the sector, hence the deliberate drive by the South African government to address skills development to maximize the value added to the sector in the country.

 

A rapid growth of the African continent population and an increase in middle class earnings per capita has seen an increase in investments by international Agribusiness companies in the continent. Most companies are accelerating their growth in key markets around the world and South Africa still remains the destination of choice . The likes of Diageo, Heineken, Unilever, Coca Cola, Nestle, ABInBev, In2Foods, Dr Oetker, Lactalis, Clover, PepsiCo are expanding their operations and product offering using South Africa as springboard to penetrate the continent.

 

To #GrowWithSouthAfrica, visit www.brandsouthafrica.com/investsa/

HEALTHCARE & LIFE SCIENCES
The medical device sector is a priority sector for the South African government. Whilst a number of the products in this market are imported, analysts expect that the African device market is expected to grow at a compound annual growth rate of 6.3% from 2017-2023, reaching around $ 7.1 billion in revenue by 2023. As a result of the Covid-19 pandemic, global supply chains disrupted giving way to emerging opportunities presenting itself in the SA and African market.

 

There are many global manufacturers with a presence in South Africa, including, Medtronic, J&J, Abbot Laboratories , GE, Simens Healthcare, Philips, Becton Dickinson and Fresenius Medical Care and B Braun.

 

South Africa boasts many world-class local manufacturers, including, Drager, B Braun, Megrotex, Medtex, Evergreen Latex, AMKA, Lodox Systems, Acasia Medical, New Horizons Metals, BSN Medical, Cape Ray Medical, Medical Diagnoshtech, Medical Plant Africa, Sinapi Bio Medical, BioVac, Cape Bio and Aspen.

 

To #GrowWithSouthAfrica, visit http://www.investsa.gov.za/grow/

DIGITAL ECONOMY & ICT
Government has created a favourable environment to stimulate investment in internet infrastructure and continues to establish regulations (digital migration, POPI Act, Spectrum Auction, Cloud Policy Development and ICT Masterplan) to support growth of the sector.

 

By 2030, ICT is expected to underpin the development of an inclusive dynamic information society and knowledge economy through the development of a comprehensive and integrated e-strategy that reflects the crosscutting nature of ICTs.

 

South Africa has relevant expertise related to fibre, datacentres, wireless infrastructure, computing and storage facilities, cybersecurity and institutional and operational capacity across hardware and software infrastructure required to successfully capture 4th Industrial Revolution investment and manufacturing opportunities.

 

To #GrowWithSouthAfrica, visit http://www.investsa.gov.za/grow/

AUTOMOTIVE & COMPONENTS
The South African automotive industry  consists of over twenty companies involved in the production of cars and commercial vehicles.

 

Among these are seven major vehicle manufacturers/assemblers [car and LCV] and several assemblers of medium and heavy commercial vehicles [MCV, HCV and buses].

 

In addition, there are also twenty-one companies involved in the importation and distribution of new motor vehicles in the country.

 

Approximately 500 automotive component suppliers, including 180 first-tier suppliers.

 

The value chain is primarily driven by the seven OEMs: BMW; Ford; Isuzu; Mercedes-Benz; Nissan; Toyota; and Volkswagen. These companies make a huge impact on the economies of Gauteng, the Eastern Cape and KwaZulu-Natal. Along with their suppliers, these OEMs are at the centre of the three regional clusters and their socio-economic contribution is vital in contributing to the social upliftment of the communities they serve.

 

To #GrowWithSouthAfrica, visit http://www.investsa.gov.za/grow/

CHEMICALS
South Africa is home to Africa’s most advanced and largest chemicals sector. The sector is diversified and highly mature, spanning fuel and plastics fabrication, to pharmaceuticals and supplies over a wide range of industries. An abundance of minerals gives South Africa’s basic chemicals industry a competitive advantage. The industry produces about 600 types of chemicals.

 

The sector is dominated by a few integrated local and international manufacturing companies, of which the 20 largest account for close to 90% of the sector’s revenue. Today, South Africa is highly regarded as being the world leader in coal-based synthesis and gas to liquid technology. South Africa comprises around 0.5% of global chemical production capacity with petrochemicals comprising about 55% of all chemicals produced locally. The sector employs approximately 171, 376 people.

 

Some of the leading companies with a presence in South Africa include Renergen, SASOL, Omnia, DOW, CHEM, BASF, AECI, Clariant, Brother Enterprises, Afrox, Foskor and Pelchem. Some of the more recent companies making investments in the country include Anaex, Brother Enterprises, Dry Ice International and Petregaz SA.

 

To #GrowWithSouthAfrica, visit http://www.investsa.gov.za/grow/

CONSUMER GOODS
South Africa is Africa’s largest market for cosmetics and personal care products. In 2018, the sector recorded close to $3.2bn in revenue.

 

Household spending on personal care products is expected to grow by 25% over the next five years. The manufacturing of cosmetics contributes about 1% to South Africa’s manufacturing output. Large multinational companies dominate the personal care market in the country, accounting for 90% of sales

 

To #GrowWithSouthAfrica, visit http://www.investsa.gov.za/grow/

CLOTHING, TEXTILE, LEATHER & FOOTWEAR
The South African clothing and textiles industry is a highly diverse and mature industry, with an important role to play as an employer in the country. The domestic Clothing, Textiles, Footwear and Leather (CTFL) manufacturing industry has a relatively high level of diversification and is supported by well-established wholesale and retail trade segments. With approximately 4500 manufacturers accounting for  about 2.5% of South Africa’s manufacturing output, the CTFL form a natural grouping in the manufacturing industry due to the inter-related nature of their input materials and operations. The South African leather and footwear industry comprises the domestic market and export market and the subsectors of footwear, leather goods, handbags and luggage, crocodile leather, ostrich leather and taxidermy.

To #GrowWithSouthAfrica, visit
www.brandsouthafrica.com/investsa/