COMPANY FORMATION IN SOUTH AFRICA

ADVANTAGES OF COMPANY FORMATION IN AFRICA

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; a stock exchange that is the 18th largest in the world; and a modern infrastructure supporting a relatively efficient distribution of goods to major urban centers throughout the region.

• South Africa is the highest-ranked African country and third-placed among the BRICS economies in the World Economic Forum’s (WEF’s) 2012 Global Competitiveness Index

• Over the past decade, substantial increases in government social service spending have helped reduce poverty, but now the government has begun to place a greater emphasis on infrastructure, employment and economic growth

• South Africa’s success in reforming its economic policies is probably best reflected by its GDP figures, which reflected unprecedented 62 quarters of uninterrupted economic growth between 1993 and 2007 when GDP rose by 5.1%

• The country is politically stable and has a well-capitalised banking system, abundant natural resources, well-developed regulatory systems as well as research and development capabilities, and an established manufacturing base.