How to Invest
South Africa (SA) is an upper middle-income country with the characteristics of both a developed and developing nation.
According to the World Bank (2016), South Africa’s Gross Domestic Product of $266 billion ranks it as the world’s 40th biggest economy and the biggest in Africa.
The investment climate in SA is also very stable and ranked 73rd in the World Bank's Doing Business 2016 publication, outperforming in aspects such as the availability of credit, the protection of investors and paying taxes.
One of the significant improvements towards the ease of doing business in South Africa in recent years is its modernised customs programme has consequently reduced the time, cost and documents required for international trade. The Western Cape has also assisted business growth for both local and international competitors by creating the Red Tape Reduction Unit that is aimed at facilitating a business readiness and investor-friendly environment.
Finance is available from various banks, government, and private and public enterprises, and can be tailored to different business needs. Over 30 registered banks in South Africa make accessing finance available, particularly for start-up and expansion capital.
Each financing source has its own set of rules, processes and procedures when applying for and accessing capital.
Various government schemes also exist to assist enterprises on various levels, whether it be for venture or development capital or for expansion needs. State incentives in important sectors can also act as sources of finance.
The Western Cape has also identified tourism and the green economy as major sectors for growth and investment. The tourism sector is a large and ever developing industry and continues to show growth year-on-year in the province. Similarly the Western Cape is one of the front-runners participating in investment in the green economy. A number of prominent renewable energy and infrastructure projects, both large-scale and small-scale, are noted.