Economy and Investment
South Africa defines itself as an investment-friendly environment and has piqued interest with global investors through increasing engagement and networking. As one of the most open economies in the world (exports and imports collectively represented approximately 51% of GDP in 2020), and with preferential access to numerous global markets, South Africa’s investment drive aims to improve confidence in the country’s economy and achieve balanced, sustainable and inclusive growth.
With developed first-world economic infrastructure and a growing emerging market, South Africa’s investment potential lies in its diversity of sectors and industries, South Africa is also a major trading nation, exporting and importing billions worth of goods globally every year.
South Africa remains an investment destination of choice for many global corporates, with more than 180 Fortune Global 500 companies having a footprint in the country.
South Africa is the preferred location for multinational investors in Africa. Its unique value proposition makes the country an attractive destination for a growing array of investors and industries. Today, South Africa is not only a resource rich economy with access to both a vibrant local market and a growing regional market but also a financial, technical and innovation hub attracting companies looking to tap the country´s talent pool.
Why South Africa is an attractive destination
- Quality infrastructure and efficient logistics
With well-established and continued investment in infrastructure, South Africa is positioned as a key global hub and an attractive gateway into the rest of the continent.
- Largest presence of multinationals in Africa
South Africa is the investment destination of choice for a substantial number of global corporates, which enjoy the benefits of doing business in the country.
- Manufacturing hub
South Africa has a well-developed, diversified manufacturing base that has shown its potential to compete globally and serves as a manufacturing hub to supply the rest of the continent for a number of consumer product companies.
- Lucrative emerging market
South Africa’s growing middle class as well as its most affluent consumer base in Africa present attractive returns on investment.
- Favourable market access to global market
The African Continental Free Trade Area will boost intra-Africa trade and create a market of over one billion people with a combined GDP of over US$2 trillion. South Africa has several trade agreements that provide an export platform into global markets
- Innovation and tech hub
The Global Innovation index ranks South Africa number one in innovation in Africa. South Africa’s intellectual property rights protection is regarded as the second best in Africa. South Africa is also fast becoming a technology hub in Africa and has a growing ecosystem in the tech sector ranging from technical expertise to finance support for entrepreneurs.
- Abundant natural resources
South Africa is abundantly endowed with precious metals. It is the world’s leading producer of platinum-group metals, the sixth-largest producer of gold, has world-renowned underground mining expertise and more than 100 listed mining companies with operations in the country.
- Young trainable labour workforce
South Africa has a number of world-class universities, producing a skilled, talented and capable workforce. It offers a diversified skillset, a large pool of trainable labour and government support for training and skills development.
- High-quality of life
South Africa is renowned for its quality of life, offering both high quality city experiences and more tranquil and breath-taking landscapes.