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South Africa’s solid infrastructure,
healthy financial system and robust
regulatory frameworks make it one of
Africa’s more attractive business and
investment destinations. But how do
other African nations experience its
business environment?
Left: Johannesburg, once renowned as
the ‘city of gold’, has lost some lustre with
the slow demise of gold mining in the
country, but it remains an iconic business
city. Above: Sandton, an affluent area
within the Johannesburg metro, is widely
regarded as the most important business
and financial district on the continent
and strengthened institutions allowed it Expats want to buy The 2015-2016 Global Competitiveness
to move away from being a pariah state products they use Report by the World Economic Forum
to the gateway to Africa. in their homelands (WEF) confirms the findings in the Ernst
& Young survey. Ranking South Africa’s
Today the country is one of Africa’s are two key drivers of the country’s economy second in Africa (although it
more attractive investment destinations attractiveness. “Then there is the wealthy has subsequently again overtaken Nigeria
– credit rating downgrades, university market. South Africans are significantly to claim top spot) and 49th globally, the
student protests and political shenanigans wealthier than consumers in most other authors attribute the high score to its
notwithstanding. Last year it attracted the African countries,” he points out. healthy financial markets (12th of 140
majority of Africa’s FDI projects – 130 to countries surveyed), decent access to
be exact, as reported in Ernst & Young’s “The fact that our institutions are much financial services (6th), the soundness
2016 Africa Attractiveness Index. This is better protected than elsewhere on the of the banks (8th), its independent legal
10 projects more than the year before, and continent plays an important role too. It is, framework (24th), and the quality of the
over 40 more than the number attracted for instance, possible to enforce a contract road networks (34th). Then there is the
by runner-up Kenya. here, as opposed to some other Africa booming telecoms sector and decent
countries. The laws in South Africa are Internet infrastructure.
Dawie Roodt, Director and Chief very strict, which equals protection.”
Economist of the Efficient Group in the “Technically there’s an open
capital city of Pretoria, isn’t surprised. environment in South Africa, with good
Infrastructure and the availability of capital
Issue 4 2016 strategicmarketingafrica 53
