The index style report revealed that South Africa ranks tops as the most attractive economy for international investments destined for the continent despite challenges emanating from slow growth said Ernest and Young in their report on Wednesday.
While this is good news for companies in the Republic the report also comes with a warning of predicted challenging years ahead for the continent as a whole. Ernest and Young also claims that this trend will extend into the previous resilient Asia as the global economy continues to struggle for growth amid the decline in the growth rate of commodity prices also affecting China’s economic transformation and growth outlook.
The reputed auditors ranks South Africa, the region’s most industrialised and second largest economy, as the most attractive investment destination in Africa in its Africa Attractiveness Index. A country’s investment attractiveness is based on its resilience in current macroeconomic pressures, as well as progress being made (by governments) in critical areas of longer-term development, namely governance, diversification, infrastructure, business enablement and human development.
“Despite macroeconomic challenges (and a low-growth environment), South Africa still outperforms most other African economies due to relatively high scores across every other dimension (partly a reflection of the fact that the South African economy is more developed than any other African economy),” EY said.
Featuring on their Top-20 list is
1. South Africa
10. Ivory Coast
Experts say economic growth across Africa will likely remain slower in the next few years than it has been over the past 10 to 15 years. The International Monetary Fund’s (IMF) baseline projection for 2016 has now been revised downwards to 3%.
“From an investment perspective, the next few years may be challenging – this is not because the opportunities are no longer there, but rather because these opportunities are likely to be more uneven than they have been.
“It is now more important than ever for organisations and investors, who sometimes place too great an emphasis on shorter term economic growth trends, to adopt a granular, fact-based approach to assessing investment and business opportunities for the long-term,” said Sugan Palanee, Africa markets leader at EY.
Michael Lalor, EY’s Lead Partner Africa Business Center, comments, “It is important to recognize that this kind of indexed ranking does not provide a definitive assessment of any of these markets; there are obviously no absolute answers in searching for market potential. However, the Africa Attractiveness Index does provide a useful starting point for analysis and helps enable a strategic dialogue on growth priorities, risk appetite and investment criteria.”
South African Investment / Business Visa
If you want to conduct your business in South Africa and obtain residency on this basis, you will need a Business Permit.
New World Immigration can assist with all the requirements but your basic steps will involve the following:
• Registering the Business at the Companies and Intellectual Property Commission (CIPC)
• Opening a Bank Account ( Please speak to us about the Banks that NWI works with )
• Registering for income tax, VAT, and employee withholding tax (PAYE and SITE) at the South African Revenue Service (SARS)
• Registering for unemployment insurance at the Department of Labour
• Registering with the Commissioner in deference to the Compensation for Occupational Injuries and Diseases Act
Speak to an experienced New World Immigration consultant for a free assessment and advice specific your unique requirements.