Being one of the most advanced and broad-based economies in the African continent, South Africa offers a lot of benefits for investors. The country presents them with a wide market and a diverse economy to take advantage of. So, today we will explore some of the reasons why foreign investors must choose South Africa as a business destination.
African Market Is Witnessing An Upward Growth
The African continent is currently on the course of a dramatic evolution with humongous opportunities for setting up several types of businesses. In fact, Africa happens to be a 1.2bn-person market and this number will only multiply in the years to come. The government has also taken several measures in the arena of ease of doing business as well. So, investors can ignore South Africa as a potential business destination at their own risk.
One Of The Biggest Economies In The Continent
The second biggest economy in the continent after Nigeria, it has all the facilities and flexibility that foreign investors usually desire for. In the last decade or so, South Africa has witnessed rapid growth in all spheres, thereby earning the ranking of the World Bank as an “upper middle-income country”. Most importantly, out of the 400 companies on the African continent generating over $1bn annually, half of these happen to be in South Africa. Are you still in doubt about the potency of the country’s market?
Burgeoning Middle Class With Rapidly Increasing Purchasing Power
After the end of the Apartheid era, South Africa saw some quick economic growth, and in the current time, there has been a spike in the number of middle-class people as well. Even the group’s purchasing power has also gone up considerably. And the high and middle-income groups are touted to increase further as the country evolves more and more.
Provides Easy Access To Sub-Saharan Markets
South Africa is not merely a significant economy that is witnessing a lot of business activities, it also serves the purpose of a platform to access Sub-Saharan markets. Fortunately, the country’s excellent infrastructure permits a smooth journey to any part of Africa. These apart, the country happens to be a regional pioneer and a part of the BRICS collaboration. All these factors make it perfect for people to establish businesses in South Africa.
Gaps Exist, And There In Lies The Opportunities
At present, there is a shortage in water, electricity, housing, health care etc in the country. These are not adequate to meet the demands of a South African population that is growing in huge numbers. And with the population set to grow further, the problem will only compound. And herein lies humongous opportunities for business, plugging the widening gap and improving the lives of its citizen. Mind you, the opportunities come at a cheap price as well.