2. Main Industry Sectors
Economic Overview
Foreign Direct Investment [FDI]
FDI Government Measures
Country Strong Points
Country Weak Points
Foreign Trade Overview

3. South Africa has a subsoil rich in mineral resources.
South Africa is the world's largest producer and exporter of gold and platinum and the 5th
largest producer of diamonds.
South Africa produces 70% of the world's platinum and also has 60% of the world's coal
reserves.
South Africa diverse manufacturing industries and is a world leader in several specialized
sectors, including railway rolling stock, synthetic fuels, mining equipment and machinery.
The services sector is flourishing (almost two thirds of the GNP) and tourism should continue
to grow after the stimulus it has received from the World Football Cup.
Agriculture only represents a small part of the GNP but employs 30% of the country's active
population.
South Africa is the 6th largest producer of wine in the world.
South Africa has a sophisticated financial structure with an active stock exchange that ranks
among the world's top 20 in terms of market capitalization.
South Africa has to be pointed out that the Rand weakened considerably during the financial
crisis.
The South African government has put in place funds to support companies to guard
against a higher depreciation.

4. South Africa is the economic giant of the African continent, contributing nearly 40% to
the total African GDP.
In the secondary sector, 75% of the biggest African companies are South African.
Rebinding after the severe international economic crisis and enjoying the benefits of the
organization of the World Football Cup in 2010, the South-African economy has
experienced a slight recovery in 2010, with an estimated growth at 3%, with an
expectation of a speedier growth in 2011.
The government is mainly focusing on the construction of infrastructure, support of the
industry, improvement of labor skills, on speeding up the agricultural reform and
reducing criminality.
After pursuing the policy of economic stimulus in 2010, the government is planning to
tighten its budgetary policy in 2011 and reduce non-priority expenses in order to contain
the deficit.
Unemployment, which affects nearly a third of the country's active population and AIDS
(infecting nearly 12% of the population) are a cause for major concerns to the country's
overall economic development.
A third of the population continues to live below the poverty line and social inequalities
remain high.

5. Being largely a free-market economy, South Africa encourages foreign investment in both private and
public sectors.
Factors attracting FDI into the country include: transparent regulatory framework, large population,
access to raw materials and political stability.
According to the UNCTAD World Investment Report, the potential appeal for foreign investment in
South Africa is strong compared with other countries in the world, but performances are poor in terms of
FDI attraction.
The global financial crisis which affected the world at the end of 2008 - beginning 2009,
South Africa is suffering from the lack of foreing investor interest and the net capital export is
higher than the income

6. Nearly all the business sectors are open to foreign investors.
No government approval is required, and there are almost no restrictions on the form or the
extent of foreign investment.
Other measures taken by the government are simple tax rules, investment incentives, a better
regulatory policy on competition, protection of intellectual rights.
We can quote :
The Foreign Investment Grant up to 15% of the value of new machinery and
equipment;
The Skills Support Program which provides up to 50% of training costs and 30% of
workers salaries;
The Strategic Industrial Project program which offers tax allowances; and
The Small and Medium Enterprise Development Program which offers tax free grants.
With 23.5% unemployment, Jacob Zuma recognizing that the recession had delayed
economic recovery and the private sector's capacity to create new
opportunities, announced the remittance of some 303 million dollars in order to help
company heads and employees who were in trouble due to the crisis

7. South Africa has high market potential, developed infrastructures and a reasonably
competitive domestic economy.
South Africa has put into place economic reforms, which have led to macro-economic
stability, tax and customs reduction. It also has a large and active stock exchange.
South Africa has shifted from its traditional industries to production and financial services
which are the main contributors to the GDP. Tourism and the retail sector have great potential.

8. South Africa has a certain amount of weaknesses:
High rate of criminal violence and corruption,
A highly regulated labour market and poor or unclear regulations
in some of the key sectors like telecommunications.
These factors contribute negatively to foreign investment.

9. South Africa is very open to international trade.
The share of international trade in the country's GNP exceeded 64%, an increase
of almost 20% over the last 4 years.
The three top trade partners of South Africa are: the United States, Japan, and the
European Union.
The beginning of the world economic crisis, the country's exports remain weak,
while import is steadily increasing, leaving the trade balance in deficit.

10. Visit us to download for related reports
Market Opportunities of products and Services in South Africa.
Export and investment sector opportunities in South Africa..
Overview of Trade Regulations, Customs and Standards South Africa..
South Africa Investment guide for beginners.
Business and Project Financing in South Africa..
Business Travel Advisory in South Africa..

11.  China  Australia
 Mexico  Germany
 United States  France
 India  Spain
 Canada  South Korea
 Russia  Vietnam
 Hong Kong  Saudi Arabia
 Colombia  Poland
 Brazil  South Africa
 Turkey  Nigeria
 Indonesia  Argentina
 Egypt  UAE
 Singapore  Netherland
 United Kingdom  Sweden
 Italy  Thailand
 Japan  Israel
and more….
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