Top 10 Reasons To Invest In South Africa

South Africa is located in the tip of Africa continent, and has a very strong and fast growing economy that mainly comes from manufacturing, telecommunications, wholesale, retail, tourism, etc. Its economy is generally base on tertiary source, little wonder, they are part of the BRICS group – a group of countries involving- Brazil, Russia, India, and China.

In 2013, South Africa has a nominal GDP worth $370.3 with just 52 million population and still growing, waxing stronger with no limitations to its expansion.

With this level of growth and stability in its economy and government, there is no doubt that South Africa is a good haven for prospective capitalist investors. For the purpose of getting yourself familiar with their economy and making a choice of starting a business therein, this article will unleash top 10 reasons you should invest in South Africa.

1. South Africa GDP Is Strong And Stable

The Gross Domestic product (GDP) of South Africa alone can drive serious traffic of investors to its economy. The 2013 nominal GPD of South Africa which is $370.3 is something to discuss about. The nation’s is very strong and stable compared to other Africa countries in terms of infrastructural development and technological advancement.

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This makes all other countries like England, USA, China, Brazil, Russia, and most African countries, want to make bilateral tie with her.

2. There Is Stability Of Power Supply

For most existing investors and incoming ones, especially in the manufacturing industry and service market, you can be rest assured of stable supply of electricity in South Africa. Unlike other developing African countries, whose electricity supply is still very epileptic and unstable, the story of South Africa is different. South Africa has about 45,700 MW, with just about 52 million population. That means, South Africa is ready to take care of its emerging industrialized and revolutionized economy.

The huge megawatts can even take care of 5 countries together. So with this, investors can be rest assured of stable electricity supply to enhance the economy and make huge profit. This gives South Africa an edge over other African countries, that are still battling with poor electricity, which does not encourage prospective investors, due to high cost of generating power in those countries.

3. They Have Sound Economic Policy

The government of South Africa has steady and stable policies on ground, which is enough to boost the emerging economy of South Africa on or before the year 2050.

The government implemented many plans of action through its National Development Plan framework, which focuses on government efforts on a set of manageable programs to grow its economy, tackle unemployment issues, and ultimately reduce poverty to the barest minimum in the country.

4. Secured Atmosphere With Less Violence

Due to stability in governance, economy, and less political imbroglio recorded in South Africa in more conducive business environment than other African and Middle East countries. Cities like Johannesburg, Cape town, Durban and Pretoria for instance, are business oriented places and for this reason, the environment is doing everything to make the country very secure for people who have put in their capital in there.

What a business (especially the large scale) needs is the promise of security offered by the South Africa administration. And that is the only way an investor can actually generate good revenue and impact positively into the economy.

5. They Have The Emerging Market

As South Africa is growing, so is her market. With the level of fast growth happening in that country, there is no doubt that it is Africa’s largest emerging market. The possibility of South Africa becoming a point of reference for the rest of African countries is very high. The country is moving out of its previous low key position and apartheid state, where there is little freedom for free trade (both internal and external), which will enhance rapid growth in its economy.

A report by the global business adviser magazine in 2012, rated South Africa as an emerging market. It says further that, ”In 2012, South Africa’s gross domestic product (GDP) grew by 2.5 percent as a result of its diverse and productive economy.”

For your information, South Africa is said to be the world’s fourth largest source of diamonds and they also have platinum. And don’t also forget, the South Africa’s banking sector is waxing stronger in the international financial market.

6. Industrialization And Cutting-Edge Technology

South Africa has reached an age of industrialization, and needs people to help her grow to meet the target set for its economy. Since it is expedient for South Africa to compete with the industrialized communities like UK, Russia, China and US, including other advanced European and American countries, she is creating an enabling environment for rapid industrialization and capitalization.

With the quest for cutting edge technologies, experts like Microsoft, Dell, HP, Samsung, and other leading corporations are helping to develop South Africa IT industry, helping the level of her industrialization to rise.

7. To Ease The Issue Of Unemployment

The rate of unemployment in most under industrialized economies around the world is fearsome. For this reason, many economic reforms have been in process by different countries with various techniques, which also includes the International labor organization efforts in curbing the issue of unemployment in the world’s employable work force.

Though, this issue has been a bottle neck for many economies for over 50 years, some countries are trying to proffer a lasting solution to it. One of the major players in creating a possible solution to this syndrome that is affecting the whole world is South Africa through her innovative and corporate investing.

8. Diversification Of Economy

In order to meet up with the vision 20, in year 2020 by UN, and to become one of the greatest economy by the year 2050, it is expedient for South Africa to diversify its means of GDP and create another means of boosting its economy.

Apart from the internally generated revenue from diamond and platinum, which are the major mineral resources in the country, it must diversify in its investment strategies, so as to meet her target market demands come the next few decades, and beat competitors.

Investors can take this opportunity to carry out feasibility studies on where to affect the lives of South African People and other immigrants positively, and meet their demands by creating new products and services for the South Africa market.

9. To Keep Continuous Relationship With The BRICS

For South Africa to maintain its interest and relationship with the BRICS, and meet up with its goals and objectives within the given frame of time they set for themselves, she must embrace even development by considering industrialization. As the newest member of the group, invited in 2011 to join the initial BRIC group, South Africa needs to prove that she is ready to face new challenges posed on her by the BRICS.

In addition, South Africa must also ensure that she’s working towards incorporating other developing African counterparts like the West, and North African countries, who are willing to grow together with them. This will enhance real growth of the South African state.

10. Its South Africa’s Turn To Shine

Despite the economic downturns that most countries have been experiencing, which has seen many countries drop their bilateral trade, South Africa is still very much a good business haven for any prospective investor.

South Africa as a country had passed her hard and apartheid period. Now, they are enjoying the freedom they all fought for, with the help of a strong leader – Late Nelson Mandela. The country is a safe haven for advanced industrialization.