Venture to South Africa with IE Singapore

Large domestic market

South Africa has a population of almost 55 million, with over 40% aged 25 to 541. With increasing affluence and purchasing power, South Africa has a large and growing consumer class, representing a ready market that firms from Singapore can tap. Many publicly-traded companies in South Africa are also focused on local consumers.

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World-class systems

South Africa’s world-class banking, legal and telecommunications systems make it easy for interested firms to enter the market. The Johannesburg Stock Exchange (JSE) ranks among the top 20 exchanges globally by market capitalisation.

South Africa has reliable legal protections, ranking top among Sub-Saharan African states in the World Justice Project’s Rule of Law Index 2016. The country also has well-developed IT infrastructure with more than 29 million internet users, recording a 54% internet penetration rate2.

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Gateway to southern Africa

South Africa is an ideal gateway for firms seeking to enter African markets. The country’s position at the southern tip of the continent gives access to 15 other countries in the Southern African Development Community (SADC), with a combined market of over 270 million people.

South Africa has been the top choice for many multinational corporations (MNCs), playing home to their regional headquarters. South African firms have also been making deep and successful inroads into the rest of Africa.

You can find experienced partners in firms such as the MTN Group and Standard Bank, which can help you capitalise on the growth prospects offered by the rest of the continent.

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Venture to South Africa

Classified as a middle-income emerging market, South Africa is Sub-Saharan Africa’s most sophisticated economy and the region’s second largest economy3.

South Africa is both rich in resources and diverse in its economic activities, which range from financial services to manufacturing. It has well-developed financial, communications, energy, and transport industries, and boasts the region’s most developed and modern infrastructure.

All this makes South Africa an ideal launchpad for Singapore firms venturing into southern Africa. The accessibility of raw materials and relatively low cost of living also make doing business in South Africa extremely cost-efficient for companies looking to tap this sizeable and affluent market.

 

 

1: CIA World Factbook, 2017

2: CIA World Factbook, 2016

3: CIA World Factbook, 2016

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Geography: South Africa is located at the southern tip of the African continent. The country has nine provinces: Gauteng, KwaZulu-Natal, Eastern Cape, Limpopo, Western Cape, Mpumalanga, North West, Free State and Northern Cape.

Population: 54.8 million (est. July 2017)

Ease of Doing Business Ranking: 82nd (June 2017)

Economic Freedom Ranking: 81st (2017)

Bilateral Trade: S$1.5 billion (2016)

Currency used: South African Rand (ZAR)

Language: isiZulu (official, most common), English (official, widely used in business and administration)

Source: CIA World Factbook

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Geography: Johannesburg is South Africa’s largest city and the provincial capital of Gauteng, the country’s richest province.

Population: 9.4 million

Source: CIA World Factbook, 2015