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5 Key Advantages of Doing Business in South Africa

South Africa – The history

It was just about three decades back when South Africa became a democratic nation. This was the time when the country became receptive to international trade and business. With time, the private sector improved and so did the economic conditions of the country. The government realised a lot of opportunity and benefit in foreign direct investments thus the laws regarding foreign investments and international trade were relaxed. So, as a foreign investor, if you are thinking of investing in a business in South Africa, you may get numerous benefits. The South African economy is believed to be the most advanced and broad economy with access to other export markets in the European Union and the Southern African Development Community. Due to Africa’s proximity to the equator, the region experiences a varying climate which is yet another supporting factor for various industries to develop profitable business here.

Here are the top five reasons to invest in the South African economy:

  1. Growing economy

According to economic experts, the African continent is undergoing a period of transformative growth. So for budding entrepreneurs, there are numerous opportunities. If you have smart and simple business solutions and are looking for business opportunities, Africa has all its doors open currently and for the coming three decades. The transformation the continent is going through is phenomenal. There are lesser challenges and more potential than expected. The recently changed political and economic system of the country has lots of opportunities available. So the foreign investors can find great prospects in offering innovative products and services and set up a whole new market in the economic sector.

  1. Great demand

South Africa stands at the second place in terms of economy. The World Bank has ranked it as the upper middle-income economy during the last decade. Most of the countries in the continent are experiencing rising economies. Though there is a partition as a part of the population is also living in poverty, there is a varied demand in many segments. The country’s infrastructure has been excellently developed to support business activities taking place in the financial sector. The middle class in South Africa has expanded, enhancing the possibilities for new businesses. As the population with high and middle income has risen, it is supporting the country’s economic growth. Also, the population is highly adapting to new concepts here attributable to offering easy growth for new businesses.

  1. Opening doors to other economies

South Africa is offering great opportunities for entrepreneurs to establish businesses here. The continent itself being an important emerging economy also opens the gates to the outside markets such as the Sub-Saharan markets. The government is actively encouraging economic growth through both social grants such as the SASSA SRD grant as well as a number of business grants. Due to the well-developed infrastructure, transportation into the region is simplified. Sharing borders with various other rising economies is yet another reason justifying easy growth here. The present South African companies that are already operating here and strong and capable enough to serve as good partners for external investors.

  1. Prospects of green living

Developing solutions for a sustainable future is yet another area to be explored in South Africa. Technologies that ensure a green balance with the lowest footprint have great opportunities here to relieve many challenges that the countries in the continent are facing. Solutions for water and energy saving, recycling and reuse, waste management and other related solutions can easily find their way into the markets here. For the rising population, solutions related to housing, infrastructure, healthcare and other urbanization concepts can find ways into the economy. It is important to meet the rising demands and to fill the gaps in these specific sectors.

  1. Availability of resources

The presence of huge amounts of resources like oil, metals and mineral fuels makes the continent one of the biggest exporters. However, there is a shortage of financing restraining the development of infrastructure needed to access the rich resources trapped across Africa. For foreign investors there is a lot of potential in Africa.

Thus, the motherland continent presents lots of opportunities for entrepreneurs, traders and investors. The young workforce that makes up about 60% of the population of the continent is also waiting for prospects to show their talents. 

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