What you need to Know about South Africa before Starting a Business There
As an investment destination, South Africa has immense potential, as it has a highly developed economic infrastructure and is one of the most promising and vibrant emerging market economies across the globe. Its abundant supply of natural resources has generated a strong, well-rooted and promising economy.
The South African Economy
South Africa accounts for nearly 40 percent of the entire African industrial output. Today agriculture contributes only for the 4% of the gross domestic product. The border of the country is always open for business and the country has a well-developed financial, legal, communications, energy and transport sectors. The South African economy has been growing substantially for twenty years and the legal and market environment are highly favorable. Owing to the robust investment and domestic expenditure, there has been an increase in the domestic competitiveness, growth and employment. And this trend is still moving upwards. In the recent years, South Africa has become a lot more focused on foreign trade. The desire for dynamic growth is one of South Africa”s driving forces at the moment. The country ranks as one of the 50 wealthiest in the world with a GDP per capita of US $5,906. South Africa”s infrastructure spending plan is set to accelerate the annual growth of the economy by between 4.5 percent and 6 percent.
Business opportunities in South Africa
South Africa is strongly looking for foreign investors, both in the public and in the private sector. The list of opportunities is endless, particularly in those sectors granted by government. For companies interested in setting up a business in South Africa, there are tremendous opportunities in a wide range of sectors that include agri-technology, advanced engineering and design, construction, railways, chemicals, mining, education, ICT, environment, power, creative industries, healthcare, and sports and leisure. Researching the South African market may take long, but it will be a major boost to your chance to expand a business in South Africa successfully.
Overcoming the obstacles
One of the biggest obstacles on South Africa’s road to economic success is corruption. It is necessary to be aware of the legislation set by the Broad Based Black Economic Empowerment when setting up a business in South Africa. It is also essential to meet the requirements of business etiquette and protocol and collect information about the area you intend to establish a business in South Africa.
Research is a vitally important aspect of formulating an effective business plan for a new market when doing business overseas. It is even more crucial when you are trying to establish yourself in a foreign location. Taking the help of professionals can be extremely beneficial in international terrain. The ideal advisors can provide the best and most practical strategies at affordable rates and give you the necessary advice in matters of international accounting, tax compliance or sas compliance. Your international expansion can be a success by teaming up with the right professional partner.
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