Investing in South Africa Roadmap 2020 - InvestSA
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Investing in South Africa
Roadmap 2020
1 SOUTH AFRICA INVESTOR ROADMAP Foreword
1
Contents
1. Foreword
2. Why Invest in South Africa?
1
2
Foreword
3. Fast Facts on South Africa 9
Economic indicators
Socio-economic and demographic indicators It is with great pride that InvestSA, a division of the Department of Trade and
Political and legal environment Industry (the dti), and Deloitte Africa bring you the updated and revised version
Arts, culture and sports of South Africa’s Investor Roadmap 2020.
Residing and working in SA
South Africa has a number of characteristics that make it a compelling
Education
investment destination on the African continent.
4. Economic Overview of South Africa 16
The Investor Roadmap provides both foreign and domestic investors with a
National economic overview
broad overview of the social, regulatory and economic environment in which
Provincial economic overview
they can expect to operate, highlighting the key features and investment
5. Sector Overviews & Opportunities 23 incentives that we believe make doing business in South Africa an attractive
Green economy proposition.
Services
It is hoped that this publication will serve as the single most comprehensive
Resource-based economy
and authoritative source of information for investors, exporters and businesses
Manufacturing
arriving at our shores.
Advanced manufacturing
For more information and advisory support, please contact us.
6. Doing Business in South Africa 37
Starting a business
• Registration process
• Business vehicles
Cost of doing business
Mr Yunus Hoosen
• Telecommunications
Head
• Electricity
InvestSA
• Property
• Water
• Transport
• Fuel
Labour costs and skills availability
Overview of Special Economic Zones
Taxation
Regulatory requirements and legislation
• Corporate
• Labour
• Finance
• Intellectual property
• Environment Disclaimer
• Telecommunications Unless otherwise stated, the information in this Investor Roadmap is based on
• Mining conditions that existed in March 2019.
• Transformation
The authors accept no responsibility for any errors this guide may contain,
Land acquisition process
whether caused by negligence or otherwise, or for any loss, however caused,
Environmental impact assessment sustained by any person that relies on the information herein.
Incentive programmes While all attempts have been made to provide up-to-date statistics and other
7. Key Contacts 76 details, this Investor Roadmap is not exhaustive and readers are advised to
8. Addendum 81 consult with their advisors and/or the relevant government agency.
2 1
2 SOUTH AFRICA INVESTOR ROADMAP Why invest in South Africa?
2
Why Invest in South Africa?
10 Reasons to Invest in South Africa Attractive and Connected Emerging Market
1 Quality infrastructure and efficient logistics
With well-established and continued investment in infrastructure, South Africa is positioned as a key global hub
and an attractive gateway into the rest of the continent.
Largest port
Largest presence of multinationals in Africa
(Port of Durban)
2 South Africa is one of the most diversified and industrialised economies in in Africa
South Africa is the investment destination of choice of a sizeable number of global corporates, who enjoy the Africa with the most affluent consumer market in Africa.*
benefits of doing business in the country. More than 180 Fortune Global 500 companies are present in South
Its well-established infrastructure and strategic location, positions South Africa
Africa.
as a key global hub and an attractive gateway into the rest of the continent. +96%
3 Manufacturing hub of households
have access to
South Africa has a well-developed, diversified manufacturing base that has shown its potential to compete
Most sophisticated financial services mobile phones
globally, and serves as a manufacturing hub to supply the rest of the continent for a number of consumer product
companies. services sector in Africa
4 Lucrative emerging market
South Africa’s growing middle class and most affluent consumer base in Africa presents attractive returns on Largest installed electricity
investment.
generation capacity in Africa
5 Favourable market access to global markets
+31m
82%
The African Continental Free Trade Area (AfCFTA) will boost intra-Africa trade and create a market of over 1bn
people with a combined GDP of over US$2trn. South Africa has several trade agreements that provide an export Largest coal terminal
platform into global markets.
(Richards Bay) in Africa internet
6 Innovation and tech hub
smartphone users
The Global Innovation Index ranks South Africa number one in innovation in Africa. South Africa’s intellectual
property rights protection is regarded as the second best in Africa. South Africa is also fast becoming a technology
hub in Africa and has a growing ecosystem in the tech sector ranging from technical expertise to finance support
3 rd
most connected
penetration
+180
86%
for entrepreneurs.
of population covered Fortune Global 500
7 Abundant natural resources shipping network companies are
by 4G/LTE network
South Africa is abundantly endowed with precious metals. It is the world’s leading producer of platinum group in Africa present in
metals, the sixth-largest producer of gold, has world-renowned underground mining expertise and more than 100 South Africa
listed mining companies with operations in the country.
Africa’s leading financial hub Top 3 international airports Most efficient
8
South Africa has a sophisticated banking sector with a major footprint in Africa. It is also a financial hub in Africa, in Africa Johannesburg, Cape Town air transport 3rd best
with the Johannesburg Stock Exchange (JSE) the largest stock exchange by market capitalisation in the continent. and Durban service in Africa overall
Young trainable labour force infrastructure
9 in Africa
*when considering economies with populations above 5 million.
South Africa has a number of world-class universities and technical colleges, producing a skilled, talented, and Sources: IMF, 2018; WEF, 2018; Skytrax, 2018; World Bank, 2018; AfrAsia Bank, 2018; StatsSA, 2018; UN, 2018; World Internet Stats 2019; ICASA, 2019
capable workforce. It offers a diversified skillset, a large pool of trainable labour, and government support for
training and skills development.
10 Excellent quality of life
South Africa is renowned for its quality of life, offering both high quality city experiences and more tranquil and
breath-taking landscapes.
2 3
2 SOUTH AFRICA INVESTOR ROADMAP Why invest in South Africa?
2
Preferred Investment Destination in Africa Affordable Production Destination with Sizeable Talent Pool
Sample of Fortune Global 500 companies present in South Africa
Automotive Resources Financial Services FMCG
Average cost per sqm prime office space, 2018
$274
South Africa is Africa’s
preferred investment
destination for multinational $170 $165
companies. $130
$89
Thanks to its highly sophisticated
business environment, world-class $11 $10 $10 $9
Chemicals
financial services sector and excellent
transport links, South Africa is regarded
as the leading springboard into the
rest of the continent.
More than 180 Fortune Global 500 Employment costs as share of total business cost, 2016
Technology/
companies have invested in South Africa, Engineering 35%
the largest concentration in Africa.
The country offers attractive opportunities 22%
for investors seeking new markets, ICT
$130
or strategic assets. 14%
12%
In 2018, President Cyril Ramaphosa
embarked on an ambitious investment
drive to secure US$100bn in Malaysia Turkey South Africa Brazil
investments by 2023. Retail
In 2018, South Africa witnessed
a more than fivefold increase in Electronics Number of graduates 2014-17
FDI inflows, accounting for % change
close to 18% of FDI FDI inflows, 2017 vs 2018
inflows into Africa. 185 373 191 524 203 076 210 931 14%
US$7.1 bn
61 580 15%
59 125
55 574 58 090
FDI inflows to South Africa 45 480 47 143 20%
increased more $130 42 343 42 917
than between 2017 US$1.3 bn 37 076 36 654 42 107 44 434 11%
x5 and 2018
2017 2018 50 380 53 863 56 364 57 772 11%
2014 2015 2016 2017
Sources: Reuters, 2018; UNCTAD, 2019
Science, Engineering and Technology
Other Humanities
Education
Business/Management
Sources: Colliers International, 2018; Rode, 2018; CBRE, 2018; World Bank, 2018; DHET, 2018
4 5
2 SOUTH AFRICA INVESTOR ROADMAP Why invest in South Africa?
2
Key Highlights and Quick Facts A Snapshot of South Africa’s Key Economic Hubs
Connected to the world Young and capable population
South Africa is well-connected to the rest Close to 60 million people call South Africa home, making it GAUTENG
of the world. Most major international the 5th most populous country in Africa. Commercial hub of the country with largest presence
of MNCs in Africa
destinations across all continents are
South Africa has a highly urbanised and young population.
accessible from South Africa via direct • Provincial GDP: R1 594bn (34% of SA’s GDP)
The country’s universities are among the best on the
flights on a daily basis. • Contribution to provincial GDP:
continent.
– Finance, real estate & business services: 24%
World-class private education South Africa is Africa’s economic powerhouse and – Manufacturing: 15%
In addition to its universities, South Africa has 50 Technical
and Vocational Education and Training (TVET) colleges
most important consumer market. It is home to four of the – Trade, catering & accommodation: 14%
South Africa has number of world-class,
progressive private education providers that focus on technical and vocational skills development. 10 wealthiest cities in Africa, accounting for more than • Key cities: Johannesburg and Pretoria
from pre-primary, primary to secondary and Currently there are 700 000 TVET students studying at 267 US$500bn in personal wealth.
tertiary levels. Some of the world’s most campuses across the country.
renowned business schools run programmes The country is home to Africa’s largest luxury market,
• 38m South Africans are of working age KWAZULU-NATAL
in the country. valued at US$2.2bn or 37% of continent’s total luxury market. Home to Africa’s largest port and
• 56% of the population is below 30 years a key manufacturing region
Outstanding medical facilities LIMPOPO
• 2 in 3 South Africans live in urban areas • Provincial GDP: R746bn
South Africa has a well-established network (16% of SA’s GDP)
of medical facilities, offering world-class • 4 of Top 5 African universities are in South Africa MPUMALANGA • Contribution to provincial GDP:
medical treatments not only to the domestic • 70% of the workforce have at least secondary – Manufacturing: 18%
South Africa’s largest provinces NORTH WEST GAUTENG
market, but also to the region. In 1967, the education – Finance, real estate &
by size of provincial GDP business services: 17%
first ever heart transplant was performed at
the Groote Schuur hospital in Cape Town, • 95% of the adult population is literate – Trade, catering &
KWAZULU accommodation: 15%
reflecting South Africa’s pioneering role in the FREE STATE
-NATAL • Key city: Durban
medical field.
Africa’s best universities NORTHERN CAPE
Exceptional value
• University of Cape Town WESTERN CAPE
While providing an exceptional lifestyle with Strong services, agricultural and
• University of Witwatersrand manufacturing sectors
worldclass restaurants, shopping and leisure
EASTERN CAPE Top 10 African cities
activities, South African cities are among the • Stellenbosch University • Provincial GDP: R633bn
by wealth, 2017
most affordable places to work and live in. (14% of SA’s GDP)
• University of KwaZulu-Natal WESTERN CAPE
Rank City Total wealth
• Contribution to provincial GDP:
Unbeatable climate – Finance, real estate & business 1 Johannesburg US$276bn
services: 25% 2 Cape Town US$155bn
With up to 300 hours of sunshine per month
Progressive democracy – Trade, catering & 3 Cairo US$140bn
and its mild and sunny winters, South Africa EASTERN CAPE
accommodation: 17%
offers an unbeatable climate. The country’s Since its first democratic election in 1994, the country has Strong automotive cluster 4 Lagos US$108bn
– Manufacturing: 15%
climate is perfect for outdoor enthusiasts. developed a strong track record of democracy. 5 Durban US$55bn
• Key city: Cape Town • Provincial GDP: R359bn (8% of SA’s GDP)
• Contribution to provincial GDP: 6 Nairobi US$54bn
Unmatched natural beauty South Africa’s constitution has been hailed as one of the
7 Luanda US$49bn
– Trade, catering & accommodation: 20%
most progressive constitutions in the world.
From pristine beaches, lush forests to open – Finance, real estate & business services: 19% 8 Pretoria US$48bn
plains and rolling hills, South Africa’s diverse The country’s vibrant and active civil society and media – Manufacturing: 13% 9 Casablanca US$42bn
geography offers unmatched recreational ensure accountability and transparency in government. • Key city: Port Elizabeth 10 Accra US$38bn
options. Its Big Five game reserves, including • 5th strongest investor protection in Africa
the world famous Kruger National Park, are an
ideal destination for nature lovers. • 2nd most independent judiciary in Africa
• 3rd freest media in Africa
• 4th highest Democracy Index (EIU) ranking in Africa
Sources: DHET, 2018; World Bank, 2018; Mo Ibrahim Index, 2018; EIU, 2018; Times Higher Education, 2018; Reporters Without Borders, 2018 Sources: StatsSA, 2019; AfrAsia Bank, 2018
6 7
3 SOUTH AFRICA INVESTOR ROADMAP Fast Facts on South Africa
3
Fast Facts on South Africa
Economic indicators Measure Fast facts
Key highlights Gross domestic 2020f: R5.62trn (US$403.0bn)
• South Africa is the second largest economy in Africa. product (GDP) 2019f: R5.24trn (US$385.5bn)
2018: R4.91trn (US$376.8bn)
• As Africa’s anchor economy, South Africa became a
2017: R4.65trn (US$349.3bn)
member of the BRICS grouping in 2010.
2016: R4.35trn (US$295.8bn)
• South Africa’s prudent monetary policy has kept 2015: R4.05trn (US$317.7bn)
consumer prices well within its target range of 3%-6%. GDP growth 2020f: 1.5%
• Compared to other major African economies, South 2019f: 0.6%
Africa has a relatively low commercial bank lending rate. 2018: 0.8%
2017: 1.3%
• Over the last three years, the South African rand was the
2016: 0.6%
best performer among major currencies compared to the
2015: 1.3%
US dollar, gaining more than 6% against the US dollar.
2000 to 2018: 2.8% p.a. (average)
• The South African rand is freely convertible.
Consumer price 2018: 4.8% (average)
• South Africa’s foreign exchange policy has been inflation 2010 to 2018: 5.3% (average)
progressively relaxed over recent years, with only minor Interest rates Policy rate (repo rate):
delays in the conversion and transfer of funds. • 2018: 6.59% (average)
• In 2017, South Africa was the largest exporter in Africa • 23 Jan. 2019: 6.75%
– exporting almost twice as much as Nigeria, Africa’s Exchange rate 2018 average: US$1.00 = R13.25
second largest exporter.
Merchandise Exports in 2017: US$88.3bn
• In 2017, South Africa was the largest importer in Africa trade Top export destinations:
– importing almost one-third more than Egypt, Africa’s • China: US$8.7bn
second largest importer. • US: US$6.6bn
• Germany: US$5.8bn
• Japan: US$4.2bn
• India: US$4.1bn
Imports in 2017: US$83.0bn
Top import sources:
• China: US$15.2bn
• Germany US$9.6bn
• US: US$5.5bn
• India: US$3.9bn
• Saudi Arabia: US$3.8bn
Sources: IMF, 2018; UNCTAD, 2018; StatsSA, 2018a; SARB, 2018 & 2019; Business Insider, 2018
8 9
3 SOUTH AFRICA INVESTOR ROADMAP Fast Facts on South Africa
3
Socio-economic and demographic indicators Measure Fast facts Political and legal environment Measure Fast facts
Key highlights Population • 57.7m population Key highlights Government • Parliamentary democracy
• South Africa is by far the most affluent economy in Africa • 37.5m working-age population • South Africa has been hailed as the most stable Legal system • Mix of Roman-Dutch law (primarily
when considering economies with populations above • 65% under the age of 35 democracy in Africa. civil), common law and statute
5 million. • 6% over the age of 65
• South Africa has the most independent and transparent (primarily economic affairs)
• Annual population growth: 1.6%
• South Africa is the fifth most populous country in Africa. judicial processes in Africa, guaranteeing investors a fair • Constitution protects basic
Highly urbanised Share of population living in urban and reliable business environment. freedoms and secures rights
• While South Africa has a young population, its age
population areas: and dignities (including property
dependency ratio is among the lowest in Africa. • South Africa has the best regulatory environment for
• 2018: 66.4% rights and protection of minorities
• About one-quarter of South Africans live in either • 2020f: 67.4%
businesses in Africa, making it a favourable investment based on ethnicity, gender, sexual
Johannesburg, Cape Town, Durban or Ekurhuleni. These • 2025f: 69.8%
destination. preference, etc.)
urban hubs are well connected and present attractive • The South African Reserve Bank is well-managed and
Middle class • Motorisation rate: 176 vehicles Fiscal policy • Balances development needs
consumer markets. independent, ensuring predictability and consistency in
indicators per 1 000 people (2017) with fiscal sustainability and
• South Africa is Africa’s largest market for automobiles • 57% of the population have monetary policy. intergenerational equity
and has the largest fleet of cars on the continent. access to the internet (2017) • The Johannesburg Stock Exchange (JSE) is the 19th Monetary policy • Inflation targeting regime
• 67% of adult population have an largest in the world by market capitalisation. On 1st March
• A number of government initiatives, such as the Jobs • Target range of 3% to 6% for
account with a financial institution 2019 the JSE’s market capitalisation was R15.9trn.
Fund, are geared towards employment creation. the year-on-year increase in the
• 95% of population has access to
headline CPI
• South Africa faces challenges of inequality; however improved water source (2018)
its progressive social spending system has helped to Capital controls • Regulation of foreign inflows is
Labour market Unemployment rate:
mitigate the impact of inequality. limited
• 2017: 27.5%
• Foreign outflows are permitted
Age distribution, 2018 • Q3 2018: 27.5%
• Some limits on permanent residents
80+ • Q4 2018: 27.1%
Male and citizens apply
70-74 • Q2 2019: 29.0%
Female Financial sector • Highly developed bond and equity
60-64 GDP per capita Current prices PPP
market
50-54 1998: US$3 159 $7 204
• Banks regulated under ‘twin peaks’
2008: US$5 802 $11 739
40-44 model, with central bank overseeing
2018: US$6 560 $13 775
30-34 both macro- and micro-prudential
20-24
Gini coefficient • 2006: 0.72 policy
• 2015: 0.68 • Signatory to Basel III accords
10-14
0-4
Trade • WTO member since 1995
2000 0 2000 agreements • Bilateral agreements with most
Thousands major trading partners
• Preferential access to US and EU
Population distribution, 2018 Population (million), 2016-23f
market through AGOA and EPA
Gauteng, 25% 59.3 60.2 61.2 62.1 • Regional markets via SADC Free
55.6 56.5 57.4 58.3
KwaZulu-Natal, 20% Trade Area
Western Cape, 11% • Transcontinental free trade area
Eastern Cape, 11% South Africa has the most admirable Investment • International investors protected
Limpopo, 10% Constitution in the history of the world. agreements under South African court system
Mpumalanga, 8%
2016 2017 2018 2019 2020 2021f 2022f 2023f Cass R. Sustain, Harvard law scholar Arbitration • The International Arbitration Act 15
North West, 7%
Free State, 5% of 2017 positions SA as a primary
Northern Cape, 2% seat for arbitration
Source: IMF, 2018; World Bank, 2018d; StatsSA, 2018b; OICA, 2018
10 11
3 SOUTH AFRICA INVESTOR ROADMAP Fast Facts on South Africa
3
Arts, culture and sports Quality of life
Key highlights Residing and working in South Africa
South Africa is a great place to work, play and live. Its diverse climate and • South Africa is a vibrant multi-cultural society with
geography offers a wide range of leisure activities from swimming, golfing, 11 official languages including: English, Afrikaans,
cycling, mountaineering and more all year round. In general, South Africans are isiNdebele, isiXhosa, isiZulu, Sepedi, Sesotho,
a very sports-enthusiastic nation, and avid followers of local and international Setswana, SiSwati, Tshivenda and Xitsonga.
sporting events.
• Johannesburg and Pretoria ranked amongst the top
In addition to outdoor activities, its cultural diversity and cosmopolitan cities 23% of the most affordable cities (133 cities ranked in
makes South Africa an exciting place to work and live. five continents).
South Africa’s rich cultural heritage manifests itself in the country’s creative • South Africa provides a wide choice of quality
industry that has produced world class artists, musicians, writers and actors. accommodation, both to rent or buy, with property
ranking 11th in the HSBC’s Expat Explorer Survey 2018.
• There are excellent private schools including access to
Select arts, culture and sports personalities
alternative teaching philosophies such as Montessori
Sport and Waldorf. There are also international schools in
the major cities which follow the American, British,
French or German curriculum or the International
Baccalaureate.
• 8% of South African universities rank in the top 16%
of universities in the world.
Bryan Habana Chad le Clos Gary Player Caster Semenya Wayde van Niekerk • South Africa has well-trained medical staff with world
(rugby player) (swimmer) (golfer) (runner) (runner) class private hospitals and clinics.
• South Africa ranks in the top 20 out of 149 countries
Film/TV Literature in the WEF’s 2018 Global Gender Gap report, which
ranks countries on progress towards gender parity.
• South Africa has been declared one of the 18
megadiverse destinations in the world. The country
is home to the famous Big Five (rhino, elephant, lion,
leopard and buffalo).
Gavin Hood Trevor Noah Charlize Theron John Maxwell Zakes Mda • 66 sites in South Africa have Blue Flag status for
(producer/director) (comedian) (actress) Coetzee outstanding environmental management of coastlines
and coastal waters for tourism and development.
Music Fashion
• A day at SA’s beaches costs an average of almost
half of what is costs in Norway, rated the world’s most
expensive beach.
• South Africa is home to 10 UNESCO World Heritage
Sites.
Black Coffee Yvonne Chaka Chaka Ladysmith Black Trevor Stuurman David Tlale
Mambazo Sources: Conservation International, 2018; Wildlife and Environment Society of
South Africa, 2018; TravelBird, 2017; Economist Intelligence Unit, 2018b; HSBC,
2018; The Times Higher Education World University Rankings, 2019; World
Economic Forum, 2019; UNESCO, 2019
12 13
3 SOUTH AFRICA INVESTOR ROADMAP Fast Facts on South Africa
3
Education South Africa’s 5 largest universities by students
enrolled, 2017
Key highlights
Committed to universal access University No. of students
University of South Africa (Unisa) 200 546
The South African government is committed to providing
quality education to every child in the country and is Tshwane University of Technology 45 990
working towards achieving universal access to education.
North West University 45 052
In order to achieve this goal, the government launched no-
fees schools in the poorest districts of all nine provinces. University of Pretoria 39 709
In addition, the government is committed to providing free University of Johannesburg 38 800
tertiary education for students from poor and working class
households.
South Africa’s 5 largest universities by graduates, 2017
Primary and secondary education in numbers
University No. of graduates
• 25 762 schools
• 23 796 public schools
University of South Africa (Unisa) 44 842
• 1 966 independent schools North West University 16 004
• 12.9 million learners
Tshwane University of Technology 14 754
• 12.5 million learners in public schools
• 0.4 million learners in independent schools University of Pretoria 13 273
• 433 320 educators University of Johannesburg 13 004
• 399 156 educators in public schools
• 34 164 educators in independent schools
• 29.8 learners per educator Enrollment rates, 2010-17
• 31.3 learners per educator in public schools
98.7
88.7
98.8
90.1
98.8
90.5
98.8
90.3
90.7
98.8
90.2
98.9
89.6
90.4
99
99
• 11.8 learners per educator in independent schools.
% of age group
Tertiary education in numbers
• 26 public universities
• 731 601 students* enrolled 2010 2011 2012 2013 2014 2015 2016 2017
• The largest share of students are enrolled in Humanities Compulsory education (7-15 years old) Secondary (14-18 years old)
• 210 931 graduates
• Science, Engineering and Technology accounts for the Students and graduates enrolled by field, 2017
largest share of graduates
• Unisa is the largest open distance learning institution in 30% 31%
28% 29%
Africa 23% 22%
21%
• Unisa is the longest standing dedicated distance 16%
education university in the world.
Education Business Science, Other
Management Engineering & Humanities
Technology
Students enrolled by field Graduates by field
* Full-time equivalent students
Source: Higher Education Data Analyzer, 2018
14 15
4 SOUTH AFRICA INVESTOR ROADMAP Economic Overview of South Africa
4
Economic Overview of South Africa
National economic overview FDI inflows, 2017 vs 2018 Sectoral contribution of national GDP, 2018
US$7.1bn Agriculture, forestry and
Key highlights
fishing, 2%
• The services sector is by far the largest contributor to the Mining and quarrying, 8%
South African economy, accounting for close to 70% of Manufacturing, 13%
value add. Electricity, gas and water, 4%
US$1.3bn
• The largest sub-sector of the economy is finance, real Construction, 4%
estate and business services, accounting for one-fifth of 2017 2018
Wholesale, retail, motor trade and
value add. accomodation, 15%
Transport, storage and
• The fastest growing sectors over the last 10 years were FDI inflows by sector, 2017 communication, 10%
agriculture, forestry and fisheries; construction; and
Finance, real estate and business
general government services. Sector Share of FDI
services, 20%
• The services sector is the largest contributor to national Finance, insurance, real estate and 44.6% General government services, 18%
employment. business services Personal services, 6%
• The three largest employment creators between 2013 Mining and quarrying 21.2%
and 2018 were finance; construction; and community Manufacturing 15.9% National employment by sector, Oct-Dec 2018
and social services. Agriculture, 5%
Transport, storage and communication 10.2%
• In 2018, South Africa witnessed a rapid increase in FDI Mining, 2%
Wholesale and retail trade, catering and 6.5% Manufacturing, 11%
inflows, accounting for close to 18% of FDI inflows into
accommodation Utilities, 1%
Africa. The strong increase in investment inflows was
driven by investments in mining, petroleum refining, food Community, social and personal services 1.4% Construction, 9%
processing, ICT, and renewable energy. Trade, 20%
Construction 0.1%
Transport, 6%
Agriculture, forestry, hunting and fishing 0.1% Finance, 16%
Electricity, gas and water 0.1% Community and social
services, 22%
Private households, 8%
FDI inflows by origin, 2017
Country Share of FDI
10-year average growth of top 3 sectors, 2008-17
UK 27.0%
Netherlands 18.0% Agriculture, forestry and fishing 3.7%
Belgium 14.8% Construction 3.3%
US 6.7%
General government services 2.7%
Germany 4.9%
China 4.7%
Japan 3.8%
Australia 3.6%
Luxemburg 2.7%
Mauritius 1.1%
Rest of world 12.7%
Sources: StatsSA, 2018 & 2019; UNCTAD, 2019
16 174 SOUTH AFRICA INVESTOR ROADMAP Economic Overview of South Africa
4
Provincial economic overview Provincial contribution to GDP, 2017
Key highlights Gauteng, 34%
As we expand our
KwaZulu-Natal, 16% presence in Southern
• Gauteng (34% of national GDP), KwaZulu-Natal (16%) • Gauteng and KwaZulu-Natal (KZN) have strong
and the Western Cape (14%) are the three largest manufacturing industries. In Gauteng, metal products,
Western Cape, 14% Africa, Hisense remains
regional economies in terms of contribution to the food and beverages, chemicals, mining-related
Eastern Cape, 8% committed to providing
Mpumalanga, 8%
national economy. manufacturing and the automobile sector are leading solutions that will enable
Limpopo, 7%
sub-sectors of the province’s manufacturing sector. In growth and sustain
• The economies of all provinces are well diversified, North West, 6%
KZN the automobile sector, pulp and paper products,
without showing an overdependence on a single industry.
rubber and plastics, chemicals and petro-chemicals,
Free State, 5% economic development.
North West, Northern Cape, Mpumalanga and Limpopo Northern Cape, 2%
• food and beverages, as well as textiles and clothing are Hisense Middle East-Africa
have strong mining clusters. key sub-sectors. Holdings
• Gauteng and Western Cape are home to well developed • In all provinces the tertiary sector recorded the strongest
and mature financial services, real estate and business average growth between 2010 and 2017.
service sectors.
Sectoral GDP composition by province, 2017 Provincial employment by sector, Q4 2018
6% 9% 9% 9% 8% 9% 8%
12% 12% 9%
13% 12%
17% 17% 17% 19%
21%
23%
7% 4%
8% 19%
20% 18% 22%
5% 6% 23%
8% 4% 24%
5% 12% 28% 32%
7% 27%
13%
13%
17% 15%
25% 7% 8%
16% 13%
6% 19%
24%
19% 14% 10% 22% 4%
12% 5%
15% 11% 6% 5%
12% 11% 3%
10% 13%
6% 6%
11% 15% 5% 7%
3%
9% 12% 3% 10% 5% 7% 24%
4% 18% 21%
8%
14% 3% 15%
3% 15% 5% 19%
17% 4% 20% 20%
4% 17%
3% 14% 13% 3% 20%
20% 3%
4% 8% 9% 8%
4% 10%
4% 9% –1% –1%
5% 4% 3%
5% 7% 9% –1%
11% 3% 12% 6%
3% 4% 34% –1%
22% 8% 9% 6%
3% 29%
18% 8%
24% 13% 9% –1%
15% 15% 13% 13% 7%
11% 9% 6%
13% 3% 12%
2% 12%
8% 3% 8% 7% 8% 9%
4% 5% 4% 6% 5% 6%
2% 3% 1% 3% 3% 1%– –1%
WC EC NC FS KZN NW GP MP LP WC EC NC FS KZN NW GP MP LP
Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity, gas and water Agriculture Mining Manufacturing Utilities Construction Trade Transport
Construction Trade, catering and accommodation Transport, storage and communication Finance Community and social services Private households
Finance, real estate and business services Personal services Gerneral government services
Source: StatsSA, 2018 & 2019
18 194 SOUTH AFRICA INVESTOR ROADMAP Economic Overview of South Africa
4
Provincial economic overview (cont.) Northern Cape Most important manganese
mining region in the world
Agriculture, forestry and
fishing, 8%
Mining and quarrying, 22%
R96bn Manufacturing, 3%
Agriculture, forestry Mining and Manufacturing Trade, catering and Finance, real Limpopo Trade, catering and
and fishing quarrying accommodation estate and business accommodation, 12%
services Finance, real estate and
business services, 13%
Other, 42%
Gauteng Commercial hub of the North West* Mpumalanga
country with the largest
presence of MNCs in Africa
Free State Major producer of potatoes,
Gauteng* grains and vegetables
Agriculture, forestry and
Agriculture, forestry and
fishing, 1%
R1 594bn** fishing, 5%
Mining and quarrying, 3%
Mining and quarrying, 11%
Manufacturing, 15%
R235bn Manufacturing, 11%
Trade, catering and Free State
KwaZulu-Natal* Trade, catering and
accommodation, 14%
accommodation, 14%
Finance, real estate and
Finance, real estate and
business services, 24%
business services, 16%
Other, 44%
Northern Cape Other, 42%
KwaZulu-Natal Key manufacturing
region and home to
North West Most important platinum
mining region in the world
Africa’s largest port
Agriculture, forestry and
Agriculture, forestry and Eastern Cape fishing, 3%
fishing, 4%
Mining and quarrying, 34%
R746bn Mining and quarrying, 2% R301bn Manufacturing, 5%
Manufacturing, 18%
Trade, catering and
Trade, catering and
accommodation, 12%
accommodation, 15%
Western Cape Finance, real estate and
Finance, real estate and
business services, 13%
business services, 17%
Other, 33%
Other, 44%
Western Cape Strong services, agricultural Eastern Cape Strong automotive clusters Mpumalanga Key coal mining and forestry Limpopo Key producer of tropical
and manufacturing sectors region fruits and second most
Agriculture, forestry and
important PGM producer in
Agriculture, forestry and fishing, 2% Agriculture, forestry and
the country
fishing, 4% Mining and quarrying, 0% fishing, 3%
Mining and quarrying, 0% Manufacturing, 13% Mining and quarrying, 24% Agriculture, forestry and
R633bn Manufacturing, 15% R359bn Trade, catering and R349bn Manufacturing, 13% R340bn fishing, 3%
Trade, catering and accommodation, 20% Trade, catering and Mining and quarrying, 29%
accommodation, 17% Finance, real estate and accommodation, 15% Manufacturing, 3%
Finance, real estate and business services, 19% Finance, real estate and Trade, catering and
business services, 25% Other, 46% business services, 12% accommodation, 15%
Other, 38% Other, 34% Finance, real estate and
* Icon indicates largest contributing province of respective sectors business services, 15%
** Provincial GDP Other, 36%
Source: StatsSA, 2019
20 215 SOUTH AFRICA INVESTOR ROADMAP Sector Overviews & Opportunities
5
Sector Overviews
& Opportunities
South Africa’s diverse economy offers an array of opportunities for investment.
While mining and mineral beneficiation remains an important sector for export
earnings and growth, business is increasingly geared towards services and
manufacturing industries.
Five sector clusters have been identified for investment, in order to increase
the country’s industrial base in critical sectors of production and value-added
manufacturing, to diversify South Africa’s exports, and to contribute to job
creation in the economy.
Waste
Economy
Clean Energy, Energy & Resource Water and
Efficiency, and Clean Transport Sanitation
Green Economy
Electronics, White
Goods and Fuel Cells Ocean Economy
Aerospace and
Defence Industries Global Business
Advanced
Services Services
Chemicals and Manufacturing
Advanced Materials
Sector
Priorities Film, TV and
Pharmaceuticals
and Medical Devices Documentaries
Manufacturing Leather, Footwear, Resource-based
Metals Fabrication Clothing and Forestry, Economy
Textiles Pulp, Paper Agro-Processing
Cosmetics Automotive, Yellow and Furniture
Metals and Heavy Mining & Mineral Aquaculture
Vehicles Beneficiation
Rail
22 235 SOUTH AFRICA INVESTOR ROADMAP Sector Overviews & Opportunities
5
Green Economy
Clean Energy, Energy & Resource
Waste Economy Water and Sanitation
Efficiency and Green Transport
Thanks to its climatic conditions South Africa has one In 2016, South Africa generated 111 million tonnes of As South Africa is a water-scarce country and is ranked
of the highest potentials for solar and wind energy. The waste, of which approximately 75% was landfilled and as the 30th driest country in the world, there is a high
Government is keen to leverage this great renewable only 25% reused or recycled. General waste was the most demand for innovative solutions for water management. It
energy potential to reduce the country’s current over- recycled type of waste with close to 40% being recycled, is projected that water demand will outstrip supply by 17%
reliance on fossil fuels for electricity generation and to set while less than 1% of hazardous waste was recycled in by 2030.
the country on a carbon-light growth path. 2017.
The 2017-18 drought conditions in the Western Cape have
Utility-scale renewable projects are driven by the South African companies, such as waste-to-protein highlighted the need for more efficient water usage and
Renewable Energy Independent Power Production company AgriProtein, have developed innovative and drought management to reduce per capita consumption.
Procurement Programme (REIPPPP), which has attracted sustainable solutions for waste treatment, that address
According to the Department of Water and Sanitation,
investments of close to R202bn since its inception in 2011 some of the country’s most pressing environmental
water losses amount to 37% of water consumption. Given
and are supported by the Government. challenges.
scarcity of supply, water loss prevention is crucial for South
Rooftop solar PV and energy efficiency technology are New and changing legislation and regulations will unlock Africa.
among the key drivers for energy services in South Africa. a number of key waste streams, notably organics. These
The commercial and industrial sector presents major changes aim to simplify rules and procedures for alternative
opportunities for rooftop solar and energy efficiency waste treatment technologies and activities. Opportunities
technology due to their relatively high electricity costs, • Supply and manufacturing of advanced water
large use of electricity and favourable size of premises. technologies
Opportunities
• Supply and manufacturing of water-efficient devices
• Development of solutions for green waste, abattoir
Opportunities • Supply of smart water metering systems
waste, the organic fraction of solid waste
• Roll-out of renewable energy technologies • Provision of technologies and services for water reuse in
• Processing/recycling of e-waste
• Adoption of energy efficiency technologies the industrial sector
• Thermal treatment technologies for dirty mixed plastics,
• Solar energy technologies and components refuse derived fuels and thermoform PET • Supply of alternative water supply technology
manufacturing (solar panels, solar water geysers, • Water efficiency technology for the agricultural industry.
• Waste related infrastructure development, expansion and
timers, etc.)
maintenance
• Wind turbines and components manufacturing
• Pyrolysis/gasification; anaerobic digestion
• Pyrolysis/gasification; anaerobic digestion
• Recycling (plastics, paper, glass, e-waste, etc.
• Energy storage.
24 255 SOUTH AFRICA INVESTOR ROADMAP Sector Overviews & Opportunities
5
Services
Ocean Economy Global Business Services Film, TV and Documentaries
South Africa is committed to leverage its opportune South Africa has a mature and globally competitive market With excellent film infrastructure, world-class studios and
location and extensive coast line to grow its Ocean for Global Business Services which is supported by world- hard-working crews, South Africa has established itself
Economy. The Government’s strategic support programme class business infrastructure. Operating costs are up to as a credible and competitive film and TV production
called Operation Phakisa, has set a target to grow the 50-60% lower than in England and Australia, with key destination.
Ocean Economy’s GDP contribution to R177bn by 2033, supporting incentives reducing these to similar cost ranges
A range of award-winning movies and TV series have been
equivalent to a 350% increase in its total value-add in as India.
filmed and/or produced in the country. Optimal climatic
2016.
Growing at 22% annually and faster than global industry conditions and a choice of highly diverse locations add to
Recent gas condensate discoveries off the coast of peers, the sector continues to attract international the country’s attractiveness for filmmakers.
South Africa are set to boost the country’s role in the investments in industry verticals such as technology and
South Africa’s competitive overhead costs, highly capable
global hydrocarbon industry. Its strategic location allows communications, financial services, legal and healthcare,
talent pool, comparable internet speeds and growing
South Africa to serve all major oil fields in West and East creating quality jobs.
number of domestic distribution platforms position the
Africa. Five of the country’s major ports provide excellent
There is a move towards delivery of next-generation country well for opportunities in the global US$270bn
oil rig and drillship repair and maintenance services at
contact centre and digital services, with a core strength animations industry.
competitive rates.
being a high quality multichannel customer experience,
Local boat and small shipbuilders are highly sophisticated supplemented by deep analytics.
and globally competitive, supplying crafts to a wide range Opportunities
of clients across the world. • Development of feature films and documentaries (with
Opportunities
these being the largest segments of the local film
• Establishment of call centres industry)
Opportunities
• Back-office processing facilities • Although animation is the smallest segment in the
• Repair and maintenance of ships and drilling rigs,
industry (around 3%), the proliferation of new technology
supported by extensive infrastructure and deep supply • Provision of shared corporate services
and skills can unlock significant growth
chains • Enterprise solutions such as fleet and asset
• Consultancy and training services provision for business
• Investment in next-generation ship and boat-building management services
and skills development programmes to support emerging
technology services Legal process outsourcing
• filmmakers and fast-track transformation in the industry
• Bunkering, re-supply and medical support services Evolution of the industry from voice-driven towards omni-
• • Opportunities across the value chain, including film
• Provision of storage and logistics services channel delivery of services concept development, film product packaging and
Analytics solutions services enabled by South Africa’s distribution, private equity financing, pre- and post-
• Port operations consulting services •
skills capability, including root cause analysis, predictive production management companies and marketing
• Provision of maritime training services services
analytics, knowledge process outsourcing and digital
• Opportunities for private equity investment in local and investment platforms. • Post production and visual effects studios to enable
pan-African project development end-to-end production in South Africa
• Oil and gas exploration and support opportunities. • Investing in new specialised studio space
• Skills development and training across the industry.
26 275 SOUTH AFRICA INVESTOR ROADMAP Sector Overviews & Opportunities
5
Resource-based Economy
Agro-processing Aquaculture Mining and Mineral Beneficiation Forestry, Pulp, Paper and Furniture
South Africa’s commercial agricultural sector is well- South Africa’s aquaculture sector is relatively small, The mining and mineral beneficiation sector plays a pivotal South Africa’s forestry industry is concentrated in the
developed and globally competitive. Thanks to diverse contributing about 0.8% to the country’s fish production, part in South Africa’s economy. The sector contributes following provinces: Eastern Cape, KwaZulu-Natal,
climatic and geological conditions, South Africa is well and accounting for less than 0.2% of the national GDP. more than 7% to the local economy and provides inputs Limpopo, Mpumalanga and the Western Cape. Pine
suited for the cultivation of a wide range of crops and However, given its growth potential, aquaculture has been into various manufacturing sectors including metal (49.6%), eucalyptus (43%) and wattle (7%) are the most
products including grains, sugarcane, fruits, vegetables, earmarked as a priority sector by the government and is a fabrication, automotive and jewellery manufacturing. commonly cultivated tree species on South African
nuts, beef, poultry, mutton, wool, fish and seafood. target sector of Operation Phakisa. plantations.
South Africa’s mineral reserves are among the most
Located in the Southern Hemisphere, South Africa Thanks to its natural resources, extensive coastline and valuable in the world. The country has the world’s largest South Africa has a well-established forestry sector with
enjoys counter-seasonality to the Northern Hemisphere, good water quality, South Africa is well equipped for reserves of platinum group metals (PGMs) and manganese, a fully-integrated value chain including pulp, paper
positioning it well to supply lucrative consumer markets in aquaculture development. and some of the largest gold, diamonds, chromite ore and and furniture manufacturing. In 2018, wood-related
Europe and North America with its agricultural products. vanadium deposits. manufacturing contributed about US$10bn to the local
South Africa is one of the largest producers and exporters
economy. Pulp is a key product of the country’s forestry
A sophisticated and competitive agro-processing industry, of abalone and is famous for its farmed premium abalone South Africa’s mining capabilities and experience make it
industry. South African pulp manufacturers are highly
with a fully-integrated value chain, has been built on South (Haliotis midae). The country produces about 1 700 tonnes a world leader in, for example, deep-level mining and the
innovative and globally competitive.
Africa’s diverse agricultural sector, accounting for 23% of abalone per year. Hong Kong is estimated to account premier source of mining-related skills in Africa.
of the country’s manufacturing sector and making it the for 90% of South Africa’s annual abalone exports. Annual About 80% of South African plantations are certified under
largest sub-sector of manufacturing. abalone exports to China (Mainland and Hong Kong) are the Forest Stewardship Council (FSC) system, providing
estimated to reach US$135m in 2020. Opportunities the industry with sustainable raw material.
• Development of new resources (coal, manganese, PGM,
Opportunities
vanadium, etc)
Opportunities Opportunities
• Fruit and vegetable canning • Coal-bed methane
• Sub-tropical and tropical fruit juice processing • Farming of freshwater and salt water species • Re-afforestation and new afforestation
• Coal-to-liquid
• Oil seed production, edible oil processing, oilcake • Supply of aquaculture equipment and technology • Timber construction – use of timber in construction
• Processing of soya-based products • Carbon capture and storage
• Supply of skills development programmes for • Manufacturing of Engineered Wood and Orientated
• Grain sorghum production, malt industry development • Coal ash beneficiation (cementitious input material
aquaculture Strength Board (OSB)
• Processing of organic, vegan/vegetarian products, production)
dehydrated foods • Supply of veterinarian services • Bio-refinery and transformative technologies
• Coal ash for acid mine drainage neutralisation
• Walnut farming and processing • Supply of feed for aquaculture • Technical training (chemical engineers, technicians and
• Supply of technologies aimed at enhancing
• Expansion of dairy, bakery, confectionery production • Local feed production artisans)
competitiveness
• Meat processing, including ostrich meat • Supply of water purification and filtration technology • Supply of wood processing equipment
• Downstream manufacturing (foundries and mini-mills)
• Indigenous plant growing on a commercial scale • Supply of pulp and paper manufacturing equipment
• Spat breeding • Nuclear fuel fabrication
• Extracting high-value additives, nutraceuticals
• Processing and canning of fish and seafood • R&D for packaging design/development
• Non-edible oil processing • Establishment of smelters and downstream production
• Commercial planting of indigenous flowers • Supply of logistics services. • Manufacturing of school and office furniture.
• Production of titanium dioxide pigments
• Production of crops for feedstock into biofuels
• Development of linkages to the global energy storage
production
value chain
• Wool production, and processing and manufacturing of
• Value chain development for catalysts and fuel cell
wool-based textiles
manufacturing
• Artemisinin and respective ingredients for anti-malaria
medicaments • Development of ferrochrome production capacity
• Flax production. • Jewellery manufacturing.
28 295 SOUTH AFRICA INVESTOR ROADMAP Sector Overviews & Opportunities
5
Manufacturing
Automotive, Yellow Metals and
Leather, Footwear, Clothing and Textiles Rail
Heavy Vehicles
The South African Clothing, Textile, Footwear and Leather
South Africa is home to Africa’s most advanced automotive South Africa’s railway network, the largest on the continent,
(CTFL) manufacturing industry is well developed and
industry. Seven major OEMs with operations in the country is the domain of state-owned Transnet Freight Rail and
ranges from the production of synthetic and natural inputs
produce more than 50% of all vehicles produced in the Passenger Rail Agency of South Africa (PRASA). Over
to final clothing and shoes.
Africa. In 2018, over 550 000 vehicles were registered in the last five years, about 220 million tonnes of freight were
Approximately 4 500 formal companies of various sizes the country, more than anywhere else on the continent. transported by rail per year, accounting for approximately
are involved in the CTFL manufacturing sector. The local With approximately 370 000 passenger vehicles sold per 25% of overall freight movements in South Africa.
manufacturing industry is mainly concentrated within two year, South Africa accounts for more than 40% of Africa’s
Over the past six years, Transnet’s capital investments
coastal regions, KwaZulu-Natal and Western Cape, as well passenger vehicle market.
averaged R30bn per year. In the next 30 years, Transnet
as in Gauteng. The Eastern Cape is an emerging hub in the
In 2017-18, the major vehicle manufacturers recorded plans to invest R167bn into rail infrastructure and R283bn
sector, thanks to its world leading mohair production.
more than US$1bn in capital expenditure. Investments in in rolling stock infrastructure. In addition, PRASA intends to
Household spending on clothing and footwear is expected capacity expansion will increase the demand for inputs procure 1 200 new trains consisting of up to
to increase by approximately 25% to R125bn in the next including parts and components. 7 224 rolling stock over a 20-year period, providing major
three years. stimulus to the sector.
The South African Automotive Masterplan (SAAM) 2035,
provides a clear vision and direction for South Africa’s
automotive industry. The well-developed SAAM contributes
Opportunities Opportunities
to the attractiveness and competitiveness of local industry
• Spinning, weaving and finishing of textiles by offering incentives and support to OEMs and suppliers. • Railway parts and components
• Knitted and crocheted fabrics and articles • Advanced materials and composites
• Manufacturing of wearing apparel Opportunities • Smart signalling and operations automation
• Dressing and dying of fur • Engines, radiators, filters • Bulk cars and dedicated rolling fleets
• Leather skins and hides beneficiation • Air conditioning/climate control systems • Refurbishment and maintenance services
• Leather seat cover manufacturing for the automotive • Alarms and tracking devices • Security equipment
industry
• Axles and transmission shafts • Route design and network planning services
• Manufacturing of protective clothing for hazardous
• Body parts and panels • Automatic/smart fare collection systems
industrial environments (e.g. mining and chemicals
industry) • Catalytic converters, silencers, exhaust systems and • Rolling stock depot design services
components Train station re-design and upgrade services.
• Manufacturing of school uniforms •
• Seats and related parts, seatbelts, leather covers
• Manufacturing of uniforms for military and law
enforcement • Suspension and shock absorbers, springs and other
related parts
• Manufacturing of work-wear.
• Steering wheels, columns and boxes
• Ignitions, starting equipment, gauges and instrument
parts
• Lighting equipment
• Wiring harnesses, instrument panels, vehicle interiors,
electronic drive components and parts.
30 315 SOUTH AFRICA INVESTOR ROADMAP Sector Overviews & Opportunities
5
Manufacturing (cont.) Advanced Manufacturing
Cosmetics Metals Fabrication Pharmaceuticals and Medical Devices Chemicals and Advanced Materials
In 2018, the sector recorded close to US$3.2bn in revenue South Africa’s metals fabrication sector is the most South Africa’s pharmaceutical and medical device sectors South Africa is home to Africa’s most advanced and
making it Africa’s largest market for cosmetics and advanced and diverse metals fabrication sector in Africa. are the largest and most advanced in sub-Saharan Africa. largest chemicals sector, valued at about US$25bn. It is
personal care products. Local household spending on The industry has major spill-over effects as top steel Pharmaceutical and medical device sales both have more estimated to be four times and thirteen times larger than
personal care products is expected to grow by 25% over consuming industries including mining, construction, than doubled in the last 10 years and are expected to reach the chemicals markets of Nigeria and Egypt, respectively.
the next five years. automotive, cables and structural steel contribute about R48bn and R19bn, respectively in 2019.
The country’s chemicals industry is highly mature
15% to the country’s economy.
South Africa has strong research and development (R&D) The country has advanced manufacturing capabilities, and diverse, spanning fuel and plastics fabrication to
capabilities, and companies have in particular invested Local content requirements of various sectors, and strong including biotechnology manufacturing facilities. In pharmaceuticals, and supplies a wide range of industries.
in R&D capabilities related to African hair and skin care demand in the automotive and infrastructure sector are addition, South Africa has strong R&D capabilities in the The sector has a fully-integrated value chain that includes
products. Local expertise present opportunities for expected to drive the demand for metals fabrication going medical industry. the production of raw materials, intermediate products
manufacturers to supply the global multi-billion dollar forward. and final chemical products. Given South Africa’s leading
South Africa is the only Southern African Development
African hair and skin care market. expertise in coal-to-liquid technology, its coal deposits
Metal producers can draw from a sizeable domestic pool Community (SADC) member country that meets the
present key inputs for the chemicals industry.
South Africans have become more inclined to consuming of raw material reserves including iron ore and manganese. World Health Organization’s Good Manufacturing Practice
organic skin and hair products, with close to one-quarter South Africa is the largest producer of manganese in standards. This positions South Africa as a gateway South Africa has developed advanced capabilities for
claiming that natural, organic or environmentally-friendly the world and holds more than 70% of global identified to the Southern African market for manufacturers of the production of emerging materials including advanced
considerations influence their purchasing decisions. The manganese reserves. pharmaceutical products. carbon materials and biodegradable materials.
country’s high bio-diversity and unique floral kingdom offer
It is forecasted that pharmaceutical sales will increase
great opportunities to producers of organic products.
by about 40% in the next five years. This is partly driven
Opportunities Opportunities
by the increase in lifestyle-related diseases including
• Manufacturing and supply of railway tracks, slipways, hypertension, obesity and diabetes. The demand for • Manufacturing of:
Opportunities
locomotives and components generic drugs has risen rapidly in recent years, due to • organic, mineral or chemical fertilisers and nitrogen
• Fragrance-free and high quality fragrance products for policy-led preferences and the domestic antiretroviral (ARV) compounds
• Manufacturing and supply of structural steel
distinct niche segments treatment programme. • polymers including polyethylene used in packaging,
• Manufacturing and supply of pumps and valves for the bags and injection moulding applications
• Personal care products for the male market Opportunities
water distribution sector • painting and coating (including for automotive industry)
•Manufacturing and supply of medicinal drugs for
• Development and production of ethnic skin and hair • organic surface active agents
• Manufacturing and supply of sheet metal and stainless diseases such as HIV/AIDS, malaria, tuberculosis,
products • biodegradable materials
steel for automotive industry diabetes and other lifestyle diseases
• bio-composites
• Supply of quality affordable beauty products Development and manufacturing of active
• Scrap metal recycling. •
• prepared binders for foundry moulds or cores
• Manufacturing of cosmetic products, packaging and pharmaceutical ingredients • proteins and peptones
distribution across retail stores • Development and manufacturing of generics • polypropylene and polyvinyl chloride beneficiation
• Production of ingredients that comply with international • Supply of tele-medical applications • composite materials, including bio-composites
market requirements in the production of organic or • Supply of niche pharmaceuticals such as alternative • titanium oxide pigments
natural cosmetics products healing methods • speciality and fine chemicals
• Manufacturing of biological-based drugs and bio- • primary polyacetals/polyethers
• Production of multifunctional products with a focus upon • nitrites and nitrates
therapeutics
wellness • carbon fibres
• Manufacturing of medical consumables
• Safety testing of cosmetic products produced locally. • engineering plastics - polyamides
• Development and supply of innovative medical
• Fluorspar beneficiation for production of
technology
fluorochemicals
• Servicing and maintenance of medical devices
• Silica sand beneficiation for production of fibre glass.
• Biotechnology and nanotechnology
• Manufacturing and processing of cannabis oil.
32 33You can also read
