Legal matters
The advent of democracy in South Africa has given rise to a new arena in which to do business. The national Constitution, enacted in 1994, contains a Bill of fundamental human rights, and also governs the running of state. South Africa is therefore a stable constitutional democracy, allowing for free enterprise.
The country has very advanced mining, financial, commercial and industrial sectors, which are on a par with the rest of the world and are the target of much overseas interest and investment. These sectors are grounded in an environment of political and economic stability.
The country also has some of the most equitable employment legislation. Relatively speaking, the cost of labour may be slightly higher in South Africa, but the flipside of this is that South Africa is free of exploitative labour practices.
Starting a business in South Africa will involve getting to know the legal system
South Africa is a bridge to the rest of sub-Saharan Africa, with several multinational companies with bases in South Africa now moving out into the rest of Africa. The southern African region possesses significant mineral wealth, such as diamonds, gold, platinum and coal, and is an economic powerhouse on the continent of Africa, to the benefit of all investors, both local and foreign.
Any investor in South Africa should be aware of the effect of legislation aimed at the advancement of previously disadvantaged people. This legislation is an attempt to reverse the injustices of the colonial and apartheid eras. Potential investors should spend some time researching these laws, as they place certain requirements on businesses in South Africa. The policy governing these laws is known as “Black Economic Empowerment” (BEE).
At the present time, the Companies Act is being replaced, and the new legislation will take South African law closer to the international standard.
In general, South Africa combines world-class infrastructure with the energy of a developing nation economy, offering tremenodus scope for investment in an exciting, transitional market arena. It is also one of the most advanced and productive economies in Africa. Listed below are some of the advantages of choosing South Africa as an investment destination.
- A launchpad to the rest of Africa
- Developing infrastructure
- Investor-friendly legal and business environment
- Prudent macro-economic policy
- Cutting-edge technology and industrial prowess
- Accessibility of markets
