South Africa: What Opportunities. Turin 26 November, 2015

Transcription

1 South Africa: What Opportunities Turin 26 November, 2015

2 South Africa at a glance Area 1,22 million km 2 Population 54 million of which 80.2% Africans, 8.8% Coloured, 8.4% White and 2.5% Indian Head of the State: President Jacob Zuma 11 Official languages with English the business language Total GDP: R 3,879.9 bn (2014) Real GDP Growth: 1.4% (2014) GDP per capita: R 71,850 (2014) Inflation (CPI): 6.1% (PPI): 5.8% (2014) Main Exports: gold, minerals, diamonds, metals & metal products, foods, automotives & components. Main imports: machinery, transport equipment, finished products, oil, chemical products. Main trading partners: China, USA, Japan, Germany, France & the UK.

3 South African Economy YEAR GDP GROWTH 3.1% 3.6% 2.5% 1.9% 1.4% AVERAGE GROWTH RATE IN THE PAST 5 YEARS 2.5% South Africa positioned as a manufacturing centre of excellence Diversified Industrial sectors Open economy Sound business case for investment and profit Gateway to Africa and markets of more than 200 Million consumers Africa is the next big story after China and India

4 South Africa: a gateway into Africa COMESA EAC

5 SADC and South Africa SADC FTA signed in August 2008 market of 200 million consumers Future FTA with SADC,COMESA (Egypt) & EAC (Kenya) with a market of 700 million consumers Market size USD 2.6 trillion

6 Trans-African Highways

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8 BRICS and South Africa In December 2010 South Africa was invited to join Brazil, Russia, India and China in the bloc of world s leading emerging market economies, resulting in BRICS. On March 27, 2013, South Africa hosted the Fifth BRICS Summit and assumed the Chair of the BRICS for 2013 through 2014, which required that we provided strategic direction to the BRICS agenda. The 5th BRICS Summit in South Africa launched the BRICS Business Council, a highlevel advisory body that makes recommendations to Heads of State. The 7 Summit was held from 9-10 July 2015 in Russia. The GDP of BRICS member states constitutes 25% of the world GDP. BRICS share of global output will increase from 18% to 26% over the next 10 years and even to one-third by 2030.The contribution to global economic growth over the last decade has reached 50%, which makes this group of states the leading power in global economic development.

9 South Africa and Italy by numbers

10 Why invest in South Africa? Because you will find Abundant natural resources Excellent transport & logistical infrastructure World class financial system Political & economic stability with sound macro-economic management Competitive sectors/industries Skills availability Favourable cost of doing business

11 Proximity to markets by sea Liverpool 25 days New York 20 days Buenos Aires 11 days Jeddah 20 days India 10 days Singapore 12 days Hong Kong 25 days

12 South Africa International Trade Agreements South Africa has signed a number of Foreign Trade Agreements in the world, which make it easier to do business. Among these are: South Africa European Union (EU) Trade, Development and Co-operation Agreement (TDCA) Southern African Development Community (SADC) FTA Southern African Customs Union (SACU) India Preferential Trade Agreement (PTA) Southern African Customs Union (SACU) - European Free Trade Association (EFTA) FTA Africa Growth and Opportunity Act (AGOA) SACU Southern Common Market (Mercosur) Preferential Trade Agreement

13 Industrial Development Zones South Africa has various Industrial Development Zones (IDZ), which are areas where production is facilitated. These are: The Coega (near Port Elizabeth) East London (Eastern Cape) Richards Bay- terminal hub for mining sector (KwaZulu-Natal) Saldanha Bay Industrial Development Zone (Western Cape) OR Tambo Industrial Zone at the Johannesburg International Airport (Gauteng) Dube Trade Port near the Durban airport. The intention of IDZs is to provide investors in the zone with direct links to an international port and the facility to import inputs and goods into the zone customs duty-free and exempt from VAT. The Government is also developing Special Economic Zones for specific projects in priority sectors.

14 Investment Opportunities - sectors Agro-processing Textile, Clothing, & Leather Business Process Outsourcing & IT Enabled Services Capital / Transport equipment, metals & electrical machinery & apparatus Electro Technical Automotives & Components Consumer goods Boatbuilding Pulp, Paper and Furniture Automotives & Components Chemicals, plastic fabrication & pharmaceuticals Green Economy Industries Advanced Manufacturing Tourism Film and Media Jewellery manufacturing and design

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16 Investment Incentives Incentive Benefit Main Conditions Foreign Investment Grant To compensate qualifying foreign investors for the cost of moving qualifying new machinery and equipment from abroad to SA. Foreign investors only

17 Thank you! Contact details: Economic Office South African Consulate-General Vicolo san Giovanni sul Muro, Milan Tel MUttaro@thedti.gov.za