Why Set Up Your Business in South Africa?
South Africa, which is officially known as the Republic of South Africa (RSA), is the southernmost country in Africa. South Africa is the 25th-largest country in the world by land area and is home to approximately 56 million people, making it the 24th-most populous nation in the world.
South Africa is strategically located at the tip of the African continent and that provides an easy-access to the 14 countries in the Southern African Development Community (SADC) – with a combined market of over 250-million people. It allows easy access to the other markets of sub-Saharan Africa. Often, foreign investors view it as the economic powerhouse of the continent. With Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho as the neighbouring countries, South Africa has well-developed transportation networks that provide the platform and infrastructure for ground transportation deep into sub-Saharan Africa.
As such, many view South Africa as one of the most sophisticated, diverse and promising emerging markets in the world. Its unique combination of highly developed economic infrastructure with a vibrant emerging market economy has positioned the nation as an investment destination. South Africa ranks 73rd out of 189 countries in the World Bank and International Finance Corporation’s 2016 Doing Business report. The ranking and the booming economy depicts the ease of doing business in this country( in terms of time, cost and hassle for businesses to comply with legal and administrative requirements).
Looking at the taxation, South Africa’s offers a corporate tax rate at a flat 28%. Also, the South African government provides incentives and supports for business setup, which improved access to finance and thus created a good business environment for all kind of business in South Africa.
In this light, we can say that the investor-friendly policies in South Africa have attracted many foreign investors to do business and expand in this country. If you are thinking of reaching out to the huge African markets or expanding your business in the African continent, South Africa has lots to offer.