South African Economy . South Africa at a glance. Source: World Bank Development Indicators 2010. South African Economy. Source: IMF : World Economic Outlook, April 2011. South Africa positioned as a manufacturing centre of excellence Diversified Industrial sectors Open economy
Source: World Bank Development Indicators 2010
Source: IMF: World Economic Outlook, April 2011
A tested and reliable legal system
Abundant mineral & natural resources
Increased investment in infrastructure
A relatively large labour force
Achieving sustained and balanced growth
Economic advantages which create a positive environment
Further,‘consistently prudent macroeconomic policies have succeeded in reducing the fiscal deficit, stabilising debt levels, and lowering inflation and interest rates’ and the country ‘stands out among its peers due to its democratic and transparent institutions and entrenched political stability…’
Standard and Poor’s, August 2010
Macroeconomic interventions to accelerate growth and ensure social inclusion
Growth in 2011 expected 3.2% -3,8%
New Growth Path
South Africa is the only African country that is a member of the G20
South Africa is also a member on the UN Security Council
OR Tambo airport is the best airport in Africa, according to the World Airport Awards 2010/11. It was also in the top 3 most improved airports in the world for the same period
South Africa’s Real GDP growth will accelerate from 2.8% in 2010 to 3.7% in 2011 and 4.8% in 2012, helped by stronger external demand and looser fiscal policy.South Africa- global perspective
Source: SouthAfrica.info; Economist Intelligence Unit
The Western Deep Level mines are the world’s deepest minesat approaching 4km.
South Africa houses one of the three largest telescopesin the world at Sutherland in the Karoo.
SA has 45 million active cell phones (population 49 million) – ranking in thetop 5globally in terms of cell phone coverage.
South Africa sold $1.8 billion worth of cars to the US in 2010, putting us ahead of Sweden and Italy as suppliers to the US market. Car sales are projected to grow 10% in 2011 to 460,000South Africa - global perspective
South Africa has an extensive rail network – the 10th lengthiest in the world – connecting with networks in the sub-Saharan region.
More than 50 airlines, making around 230 000 aircraft landing, and carrying about 33m passengers a year, move through South Africa’s 10 principal airports.
The Port of Ngqura is being developed off the coast of Port Elizabeth in the Eastern Cape and is set to be the deepest container terminal in Africa.South Africa - global perspective
Source: South Africa Geared for Growth, 2010
China, Poland, Spain, India, Korea, Brazil, SA, Colombia Chile &
South Africa is:
2ndmost sophisticated financial market
2ndlowest effective business tax rate
4thranked for ease of accessing capital
4thranked i.t.o. the cost of capital
6thranked for infrastructure
7thfor FDI as a % of GDP (2008)
8thranked i.t.o labour productivitySouth Africa – emerging market perspective
Source: Brazil National Confederation of Industry. Competition Brazil 2010: A Comparison of selected countries
The JSE Securities Exchange one of the world’s top 20 exchanges.
1stfor the regulation of securities exchange, strength of auditing & reporting standards by Global Competitiveness Report 2010.
1stout of 60 countries in the Economist’s House Price index for the period 1997 – 2009.
The South African Rand was the 2ndbest performing currency against the US Dollarbetween 2007 and 2011, in Bloomberg’s Currency Scorecard.Economic Achievements
34thout of 183 countries in the World Bank Ease of Doing Business 2011
2ndin the ease of getting credit
2ndforgood practice in protecting both borrowers and lenders
54thout of 139 countries in the World Economic Forum’s Global Competitiveness Index.
9thinfinancial market development
27thin the protection of intellectual propertyEconomic Achievements
South Africa is aworldleader in coal-based synthesis and gas-to-liquid technologies.
It is among the lowest-cost producers of ethylene and propylene in the world, thanks to abundant access to low-grade coal and leading-edge process technology.
Sasol has flown the world’s firstpassenger aircraft using the company’s own-developed and internationally approved 100% synthetic jet fuel. Sasol took to the skies with the world’s first fully synthetic jet fuel flight on Tuesday, 21st of September 2010.Economic Achievements
Source: Ernst & Young’s 2011 Africa attractiveness survey
The operating environment is improving visibly and rapidly …
54 countries, 35 democracies (compared to only 8 in 1991)
Many countries have improved their business environment:
restored macro-economic stability
greater predictability & increased reliability of policy & regulatory framework
increased transparency and improved decision-making
investment protection & promotion
intra and inter-regional initiatives
High returns on investment
T – FTA will create a sizeable regional market with a GDP of
$ 624 billion and a population of approximately 700 million people
An African common market without internal borders will unleash the economic growth and potential of Africa
Developmental Integration leading to cross border infrastructure development to strengthen regional supply capacity
North – South Corridor – Cape to Cairo to facilitate trade and reduce cost of doing business
And to 15%
in the next 10years
Key pillar of the New Growth Path
IPAP: value-added sectors with high employment and growth multipliers
Co-operation Agreement (TDCA)
Trade Agreement (PTA)
Trade Association (EFTA) FTA
Source: Quantec, 2011
Source: The Financial Times Ltd , 2011 (www.fdiintelligence.com
Source: The Financial Times Ltd , 2011 (www.fdiintelligence.com
South African Construction and Steelwork on ALL continents, including Antartica!
International icons constructed include Burj al Arab Hotel - Dubai, Emirates Towers - Dubai, Khalifa Sports Hall Asean Games 2006 – Qatar and many more!
Examples of complete stadiums, including all civils and steelwork built for the World Cup.
Our steelwork is to be found in and around all the stadiums!
Moses Mabhida Stadium, Durban
Greenpoint Stadium, Cape Town
Soccer City, Soweto
Securing Electricity Supply
Eskom has spent over R75.5 billion on the capital investment programme since 2005, and has delivered some 5 031 Megawatt of new electricity generating capacity into the system as well as thousands of kilometres (3 051 km) of high voltage transmission lines to transport electricity across the country.
Eskom, through its Medium Term Power Purchase Program (MTPPP), has signed agreements with three Independent Power Producers (IPPs) since April 2010, totaling some 277 MW with a number of contracts in the final stages of completion, which will bring the contracted power purchases to around 400MW this year.
Eskom has embarked on returning to service it’s previously “mothballed” coal-fired power stations. . The total RTS (return to service) portfolio will add 3 800 MW nominal capacities to the national electricity supply system.
The Department of Water Affairs has identified seven (7) new augmentation water resources infrastructure projects to support the domestic, industrial, agriculture and energy sectors
Broadband Infraco continues to invest in its national backbone fibre optic network with R243 million spent in the 2009/10 financial year. Broadband Infraco’s fibre optic cable network now covers approximately 12 250km country-wide. Enables the country to extend connectivity to the SADC Region to countries such as Lesotho, Namibia, Botswana, Mozambique, Zimbabwe and Swaziland.
Maintenance of secondary road infrastructure using labour intensive methods of construction and maintenance. We have set aside R6.4 billion in 2011/12, R7.5bn in 2012/13 and R8.2bn for 2013/14, amounting to a total of R22.3bn in the medium term. At least 70 000 jobs will be created in 2011.
Rail modernisation programme
The Gautrain forms an integral part of our rail modernisation programme.
Starting in June 2011, the Gautrain will move at least 40 000 people hourly on the commuter line between Johannesburg and Tshwane stress-free and in less than 40 minutes.
The system includes 125 feeder buses operated by a consortium that includes taxi operators.
The recapitalization of PRASA rolling stock, Extension of the Gautrain from Sandton to Hatfield, and the Modernisation of our long-distance passenger and freight services.
Industrial Development Zone
IDZ’s are considered part of the Customs Territory of South Africa.
An IDZ is located adjacent to a
port allowing importation of raw
materials, plant machinery &
equipment; and the export of
Multi-Level Car Terminal
Dry Dock & Ship Repair
Aerospace Aviation Village
South Africa today is one of the most sophisticated and promising emerging markets globally, mainly because of …
Political & economic stability with sound macro-economic management
World class financial system
Favourable cost of doing business
Finance to explore investment opportunities in SA
Facilitating direct Government support in the form of:
- information on investing in SA and the Business Environment
- detailed investment Incentives
- investment facilitation
- after care – ongoing contactthe dti’s Investment Services