Report

$1,555.00

South Africa’s business environment benefits from its diverse industrial and service base, strong trade volumes with diversified trade partners and regionally high inward foreign direct investment stock. A strong and well-regulated banking and financial services sectors means that businesses will have few limitations when attempting to raise funds, while a regionally robust court system supports investor disputes. The country remains exposed to commodity price fluctuations and external demand risks, particularly from Mainland China and Europe, both key trade partners. In addition to current elevated inflation, further flood risks in KwaZulu-Natal and electricity cuts, South Africa’s medium-term growth prospects are being weighed down by concerns over fiscal slippages, uncertainty on state-owned enterprises, stalled anti-corruption efforts, as well as the glacial pace of structural reform adoption.

The Report assesses the trade and investment risks and opportunities facing businesses and investors in South Africa via insights into trade barriers, free trade agreements, investment incentives, investment restrictions, FDI flows, key import and export markets, government intervention, taxation, and the development of the legal and bureaucratic systems.

Economic Openness: This segment assesses the risks posed to businesses and investors looking to enter the market, assessing its overall openness to foreign direct investment, and attractiveness as an investment destination compared with its regional and global peers. The Report highlights key investment barriers and incentives, and evaluates trade flows, main trading partners and products and barriers to trade. 

Government Intervention: This segment highlights key risks stemming from the burden of taxation and financial barriers on foreign and local firms. It also analyses the development of the financial market, the density of the banking sector, availability of credit, and the sophistication of the market.

Legal Risk Analysis: Covering the observance of the rule of law and risks posed to businesses stemming from corruption, this section evaluates the main risks that investors and businesses face from the regulatory quality in a market and the protection of real and intellectual property rights. It also assesses bureaucratic risks, the extent of e-governance development and governmental transparency.