South Africa the business hub of Africa
South Africa as a country, believes in the future. International business shares this optimism. All the critics were surprised when SA staged a successful FIFA World Cup in 2010, passing with flying colors its debut in the international sports arena.
The question remains: Can SA contend with the top cities in the world or is it the gateway to Africa’s profits? Some opinions state that what can be done in Londen can be done in Johannesburg and therefor it can become the investment anchor in sub-Sahara Africa. Africa has 6 of the 12 fastest growing nations in the world.
In stead of being the first stop for investors looking at Africa, South Africa became the business hub from where investment is done, using the steady economy of South Africa as a safe haven.
High Marks on Competitiveness
South Africa has scored very highly on the World Economic Forum (WEF) Global Competitiveness Report in the categories:
• regulatory system,
• banking system,
• stock market
• corporate governance .
South Africa ranked best or second best in the world for categories such as:
• Strength of auditing and reporting standards,
• efficacy of corporate boards,
• protection of minority shareholders’ interests,
• soundness of banks,
• regulation of securities exchanges,
• legal rights
• availability of financial services.
Overall, for 2012-2013, South Africa ranked 52 out of 144 countries, the best sub-Saharan nation. When looking to deal with other African countries, South Africa is the best-placed position for raising capital, obtaining investments and closing deals.
Infrastructure Projects in South Africa for the Future
South Africa will be driven forward over the next 5-15 years, by infrastructure development. Companies will benefit from taking advantage of this expected growth. Parts of it were accomplished for the World Cup 2010, but much is still ongoing. These projects in the areas of telecommunications and power, will give a competitive lift to businesses operating in South Africa.
At the same time South Africa provides prospects for foreign firms to come and offer expertise in specific areas. The South African government is looking for foreign companies with experience in handling heavy rail, roads and pipelines, as well as nuclear and renewable electricity generation. More projects will include the upgrading of port facilities to preserve South Africa’s competitive edge. The future South Africa will be power heavy, therefor upgrades will be required on the current power network.
Political Stability for South Africa
Many businesses aren’t rushing to take advantage of South African opportunities. Political stability is a concern and labour unrest are tainting views. Investors looking at short-term gains are scared away by the ongoing labour troubles. When looking at mid- to long-term investment, they can see opportunities. South Africa is stable and has a reliable economy.
Whatever happens with the Zuma government, the steadiness of South African democracy is quite secure.
The democracy is secure, but what about your valuable possessions?