South Africa :: Business Environment

          South Africa, and the Western Cape in particular, provides a safe, positive environment in which to conduct business. Commercial practices and interactions are modern, efficient and well-versed in contemporary techniques. The workforce is skilled and effective, and there is a well educated wide-spread black managerial population.

Key Points

• There are no restrictions on the type or extent of investments available to foreigners
• There are very few restrictions on the foreign ownership of property
• No government approval is required for a foreign investor to establish a new business in South Africa, except under the Exchange Control Regulations.
• There is no restriction on the inflow of foreign capital.
• The World Bank Report "Doing Business in 2004" analysed 130 countries and concluded that South Africa was efficient in business registration procedures (better than France or Germany).
• The World Bank report also concluded that South Africa's employment environment was favourable - indexing the factors of flexibility of hiring, conditions of employment and flexibility of firing.
• A internationally recognised London research consultancy Control Risks Group concluded that the South African violent crime level was low, that authorities provided effective security and that there is virtually no political violence. This means that business assets and personnel are not at risk (excepting isolated incidents and petty crime) and that South African businesses are promoting good governance.
• South Africa is becoming more flexible in the granting of work permits.
• Assistance is available from TISA (Trade and Investment South Africa) and particularly, from WESGRO which promotes business in the Western Cape.