Finance and investment
South Africa is one of the largest economies on the African continent, home to 75 per cent of the largest African companies. Finance accounts for approximately 16 per cent of the continent’s GDP. With a growing middle class, an affluent consumer base, an investor-friendly environment allowing 100 per cent foreign ownership and concrete initiatives to develop the economy and attract $100 billion of FDI within five years, it aims to be among the top 50 countries in the World Bank’s Doing Business Report within three years. A new body InvestSA is a one- stop-shop to help investors to start up and run a business. InvestSA Winner of the Investment Promotion Award at the 2019 Annual Investment Meeting (AIM), the world’s leading FDI platform, for facilitating the most innovative and digitally orientated investment projects for 2018. South Africa Investment Conference 2018 The inaugural meeting announced to the world that SA is open for business. With the theme ‘accelerating growth by building partnerships’, the conference reinforced South Africa’s investment profile as a promising emerging market in an increasingly integrated African market. The first meeting generated announcements of investment of over R290 billion from companies in mining, forestry, manufacturing, telecommunications, transport, energy, agro-processing, consumer goods, pharmaceuticals, infrastructure, financial services, energy, ICT and water. A growing market A continental free trade area (AfCFTA) of 1.2 billion in 55 member states is one step closer with the 2018 Kigali Declaration. The free trade area could increase intra-trade by 52 per cent by 2022 (ECA) and creates huge potential for SA exports (currently 30 per cent) into the rest of the continent. Follow the money South Africa offers huge potential for finance and investment, both as a country and as a gateway to the continent
SA is rated among the top ranked globally competitive economies (61st): The Global Competitiveness report • Ranked 47th in business sophistication: World Economic Forum •
Ranked 44th for financial markets development: World Economic Forum Competitiveness Index SA is ranked 10th IRO Investor protection: IMF The flourishing services sector employs 71 per cent of the workforce The Johannesburg Stock Exchange is one of the best regulated stock exchanges worldwide and is the 17th largest stock exchange in the world in market capitalisation.
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“South Africa has the potential to become the destination platform for economic growth into Africa. South Africa has not reached its full economic potential. We have a harvest of natural resources, we have the two busiest and largest ports in Africa (Durban and Richards Bay). I believe we can achieve consistent growth rates above 5 per cent PA with the right skills sets in our economy. It is quite easy to invest and own real estate in South Africa. Our stakeholders such as the Chambers of Commerce, Regional Trade and Investment offices and various city incubation hubs are also specifically dedicated to assist potential investors to better understand their markets as well as provide continuous research, compliance and market access opportunities that are focused at making the investors experience seamless.” Sastri Ramiah (CA) SA, CGMA, CEO, Olive Convention Centre
SOUTH AFRICA | OCTOBER 2019 | vii
www.businessevents.southafrica.net
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