Doing Business In South Africa
In recent times, South Africa has become one of the global best-emerging markets. The country has witnessed significant improvements due to a combination of advanced first-world financial markets and a fast-paced economy. As a result, existing and new products or services are gaining market entry.
As part of efforts to record a meaningful international growth in her economy, South Africa has provided a unique investment environment and entrepreneurial motivation programs that would, unavoidably, bring about global opportunities and competitive advantages. Some of these processes are captured in the National Development Plan (NDP) that aims to eradicate poverty by 2030 by expanding economic opportunities by ensuring exports diversification, encouraging market entry for new and existing businesses, implementing reforms to reduce the cost of doing business, and motivating innovation and entrepreneurship.
Why Existing and New Businesses Should Take Advantage of Market Entry?
With the international growth the country is enjoying, now is the best time for new and existing businesses to gain market entry. And here are some of the reasons to come on board:
- Construction and Improvements of Infrastructure
From a forward-looking perspective, the Government has committed to upgrading existing infrastructure and building new ones as evident in the construction of ports, railway systems, electricity plants, hospitals, and dams.
- Diversification of the Economy
South Africa’s manufacturing sector has been diversified to allow different types of business to gain market entry and grow stronger. The major sectors include metal fabrication, agro-processing, automotive, clothing and textile, pharmaceuticals, leather and manufacturing, capital and rail transport equipment, advanced manufacturing companies among others.
- Introduction of Incentives
That the country is gaining international growth is not enough to achieve a significant change in the economy of South Africa. The government offers a wide range of incentive schemes aimed at stimulating and encouraging market entry by various products and services. The incentive can be in the form of tax relief or provision of funding.
- Stable Exchange Rates
One of the factors that discourage market entry by new businesses is the volatile foreign exchange rate. However, the Rand- Dollar exchange rate has remained less volatile and tends to be predictable in the medium time. Thus, the differences in the cost of doing business will not be staggering.
- Developing Market Opportunities
South Africa is considered to be the stepping stone and a link for creating market opportunities in Sub-Saharan Africa. With this development, more suppliers will come up. A conservative market bias will also be eradicated and the door will be opened to new investors and businesses.
If you are a new startup or an existing business, South Africa is one of the best countries to take your business to. It is cheaper to run your business and expand your reach. Maximize the potential of your business by making a market entry in South Africa.