The Embassy of South Africa in Israel

Overview

Why Invest in SA?

The South Africa of today is one of the most sophisticated and promising emerging markets globally. The unique combination of a highly developed first-world economic infrastructure and a huge emergent market economy has given rise to a strong entrepreneurial and dynamic investment environment.

South Africa is the economic powerhouse of the African continent, with a Gross Domestic Product (GDP) of R1,9 trillion (US$283bn) – four times that of its Southern African neighbours, and comprising 30% of the entire GDP of Africa.

The World Economic Forum’s Global Competitiveness Report 2008/09 of the World Economic Forum, ranked South Africa 45th out of 134 global nations. South Africa’s GDP grew at a healthy 5,2 % in 2007 and a lower 3,1% in 2008, due to the impact of the global economic crisis. South Africa is one of the most sophisticated and promising emerging markets, offering a unique combination of highly-developed first world economic infrastructure, with a vibrant emerging market economy. South Africa is also one of the highest ranking developing economies and surpasses countries such as Hungary, Italy, Brazil and Thailand. The country leads the continent in industrial output (40% of Africa’s total output) and mineral production (45% of total mineral production) and generates most of Africa’s electricity (over 50%).

Its major strengths include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector, and strong growth potential in the tourism, higher value-added manufacturing and service industries.

South African banking regulations rank with the best in the world. The sector has long been rated among the top 10 globally. There are 55 locally controlled banks, 12 foreign-controlled banks and five mutual banks. Some of the world’s leading institutions have announced their intention to enter the local banking sector through mergers and acquisitions.

The JSE Limited is the 18th largest exchange in the world by market capitalisation (some R3.3-trillion as of September 2005). The JSE’s rules and their enforcement are based on global best practice, while the JSE’s automated trading, settlement, transfer and registration systems are the equal of any in the world.

Four main metropolitan areas dominate economic activity within the country: Johannesburg and its surrounds (Gauteng province), the coastal Durban/Pinetown areas (KwaZulu-Natal), the Cape Peninsula (which includes Cape Town), and the Eastern Cape’s Port Elizabeth/Uitenhage area.

The financial and industrial sectors are concentrated in Gauteng province, which on its own accounts for over 30% of the country’s GDP.

Here are just some of the reasons for doing business in South Africa:

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