Page 5 - SA is open for business

4 SOUTH AFRICA INVESTMENT CONFERENCE SOUTH AFRICA INVESTMENT CONFERENCE 5

25-27 OCTOBER 2018 25-27 OCTOBER 2018

A long-term South Africa is ranked number one in Africa for the protection of investment and minority investors. SA is ranked number 1
in Africa in the World
Bank’s Logistics
vision for a We have a progressive Constitution, a sound governance framework and an independent judiciary. Performance Index

bright future The country has also produced solid financial returns for portfolio investors. We are open for business Our infrastructure – road, rail and
port facilities
. 158 952km of paved roads; 20 986km
of railways
The National Development Plan (NDP) is a long-term . Two of the world’s top container ports
vision developed by the National Planning Commission (Cape Town and Durban)
in collaboration and consultation with South Africans . Two of the world’s largest dry bulk
from all walks of life. ports (Richards Bay and Saldanha Bay)
Former finance minister Trevor Manuel stated in his
speech at the launch of the NDP: “The plan is the Beneficiation/energy capacity
product of thousands of inputs and perspectives of . Installed generation capacity of
South Africans. It is a plan for a better future; a future in 47.3KW with significant excess capacity
which no person lives in poverty; where no one goes coming on stream
hungry, where there is work for all; a nation united in
the vision of our Constitution. Most advanced ICT structure
“The NDP envisions a South Africa where everyone . Internet and personal computer
feels free yet bounded to others; where everyone penetration is the highest in the region,
embraces their full potential; a country where with 54% of individuals using the
opportunity is determined not by birth, but by ability, internet
education and hard work. A South Africa where we . Upload and download speeds
participate fully in efforts to liberate ourselves from the significantly higher than in other
conditions that hinder the flowering of our talents. regional economies
“To realise such a society, we need transform the
domestic economy and focus efforts to build the Ease of air travel
capabilities of both the country and the people. To . Sufficient number of airports
eliminate poverty and reduce inequality, there should be
accelerated growth in the economy, growth that benefits The country’s
all South Africans.”
The NDP serves as an action plan for securing the catalytic approach
future of South Africans as charted in the Constitution. for investment
The Constitution requires that we must build a united
and democratic South Africa, able to take its rightful
place as a sovereign state in the family of nations. The We provide active support for investors
NDP is founded on six pillars that represent the broad by providing a wide range of incentives,
objectives of the plan to eliminate poverty and reduce including a comprehensive suite of tax
inequality. SA is open for business incentives for investment in special
THE NDP AIMS TO ACHIEVE THE economic zones (SEZs). Incentives
offered by SEZs include:
FOLLOWING OBJECTIVES BY 2030: . Preferential 15% corporate tax rate;
. Unite South Africans of all races and classes . Value added tax (VAT) and customs
around a common programme to eliminate poverty and duty suspension in customs-controlled
reduce inequality; areas;
. Encourage citizens to be active in their own . Employment incentives;
development, in strengthening democracy and in . Building allowances; and
holding their government accountable; Leading markets for SA exports, 2017 (R1 187.5bn) Sectoral composition of GDP in 2017 . Preferential land rental and utility rates.
. Raise economic growth, promote exports and AFRICA
make the economy more labour absorbing; Rest of the world Africa Agriculture, Access to . Investment in labour-absorbing
. Focus on key capabilities of both people and the 24.9% 26.3% forestry and fishing industries is encouraged through various
country. These capabilities include skills, infrastructure, offers a General government 2.6% Mining and mechanisms.
services
quarrying
social security, strong institutions and partnerships, both 17.7% 8% Manufacturing affordable
within the country and with key international partners; 13.2% . Financing assistance is provided by
. Build a capable and developmental state; and myriad of India Personal services state-owned development finance
3.7% capital
. Ensure strong leadership throughout society that 4.7% 5.8% Electricity, institutions such as the Industrial
works together to solve our problems. gas and water Development Corporation of SA, the
Japan
BY 2030, THERE SHOULD BE: opportunities 4.7% Development Bank of Southern African
and the Land Bank.
. A reduction in the number of people who live in
households with a monthly income below R419 per Construction South Africa has world-class equity and debt Domestic market
person from 39% to zero; and Agriculture and agroprocessing: 3.9% capital markets, on par with those in
. A reduction in inequality as measured by the Gini Africa has 60% of the world’s uncultivated arable land, with developed economies.
coefficient from 0.69 to 0.6. value-adding opportunities in the food processing sector, as Finance, real estate Trade, catering and . With a population of 56.5 million and
well as abundant water resources for energy generation, and business services accommodation The Johannesburg Stock Exchange (JSE) is a growing middle class, South Africa
This can be done by addressing the underlying irrigation and potable water. USA EU 20.2% 15% one of the world’s top 20 exchanges and has a ranks 27th globally for its domestic
Transport, storage
causes of poverty and inequality by redirecting the focus 7.5% 22.1% and communication market capitalisation of $1.11 trillion, making it market size.
of policy making from short-term, symptom-based Mining and minerals beneficiation: China the 17th largest globally. . The are 37.7 million people in the
policies to longer-term policies based on sound Africa is a major player in various mineral resources such as 9.8% 9.9% working age category.
evidence and reason. platinum, chromium, diamonds, gold, bauxite, cobalt, copper, Sources: IDC, Statistics South Africa Note: Sector share according to GDP at basic prices (current prices) Sources: IDC, Statistics South Africa South Africa’s major primary and secondary . A young, vibrant population – 66%
At the core of the NDP is the aim to ensure the phosphate and uranium. The continent has almost 8% of the equity and bond markets, based at the JSE, are younger than 35 – presents major
achievement of a decent standard of living for all South world’s oil reserves. Its enviable resource endowment provides Consumer goods: SA’S VALUE PROPOSITION represent a market capitalisation-to-GDP ratio opportunities for investors.
Africans by 2030. vast opportunities for investment in mining and minerals Africa has just more than one billion consumers, a young of 312%.
beneficiation. population, rising disposable incomes, growing middle classes Gateway to Africa:
A DECENT STANDARD OF LIVING CONSISTS and increasingly sophisticated consumer segments. These WE ARE: The banking system is sophisticated and well- . Location of choice for multinationals
OF THE FOLLOWING CORE ELEMENTS: Hydrocarbons, particularly natural gas: factors are indicative of numerous opportunities for consumer- Africa’s most industrialised economy. It is the region’s principal manufacturing hub regulated and is ranked 37th globally for in Africa, underpinned by factors such
. Housing, water, electricity and sanitation Large offshore and onshore gas reserve discoveries in oriented sectors. and a leading services destination. financial soundness. The financial sector has a as a skilled labour force, established
. Safe and reliable public transport Mozambique and Tanzania present huge development large footprint across the continent. infrastructure and a world-class
. Quality education and skills development opportunities for energy generation. Banking sector/financial services: WE HAVE: banking and financial services sector.
. Safety and security There has been rapid growth in the past decade, underpinned A highly diversified economic structure in terms of sectorial composition. CAPITAL RAISING STATISTICS:
. Quality healthcare Manufacturing: by financial sector reforms. . 12 initial public offerings (IPOs) in 2017 with . The cost of doing business in South
. Social protection There is a wide range of opportunities, including the WE ARE: total proceeds of $2.3 billion, compared with Africa is a major pull factor,
. Employment development of value chains such as petrochemicals, food Information, communication and One of the most open economies in the world (ratio of exports and imports to $261 million in 2013 underpinned by the supportive
. Recreation and leisure processing and beverage production, minerals beneficiation telecommunications: GDP exceeds 58%). . A total of 44 IPOs were raised between 2013 environment and relative competitive
. Clean environment and metal products fabrication, forestry and wood processing, This is an important driver behind Africa’s economic growth in and 2017, totalling $4.8 billion advantages of the continent.
. Adequate nutrition textiles, clothing and footwear. recent years, underpinned by an already substantial and WE HAVE: . 5 of the top 10 IPOs by value in Africa were
Government alone cannot provide a decent standard rapidly expanding subscriber base. Preferential access to numerous global markets. raised in South Africa . Provides access to the continent
of living; it requires determined and measurable actions Infrastructure: . 251 further offerings in 2017 (valued at with a population of more than one
from all social actors and partners across all sectors in There are massive development opportunities across the Regional integration: WE ARE: $37.6 billion), up from 35 further offerings billion and a GDP of $2.2 trillion.
society. infrastructure spectrum, including input requirements Regional economic communities (the Southern African Endowed with an abundance of natural resources. ($4.6 billion) in 2013
The NDP is divided into 13 chapters that address the associated with Africa’s ongoing infrastructure and industrial Development Community, the Southern African Customs Union, . Regional partnerships – including
most pressing challenges facing South Africa, and development drive. the Common Market for Eastern and Southern Africa and the WE HAVE: SOUTH AFRICA ACCOUNTED FOR participation in the Southern African
provide solutions to these challenges in the form of East African Community) are key drivers of economic growth, A sophisticated banking sector with a major footprint in Africa. Development Community, the Southern
proposals and actions. The plan outlines sector-specific Forestry and wood processing: investment activity in infrastructure and productive activities, as 7 of the top 10 African Customs Union and in the new
goals and a vision for South Africa to be achieved by There is massive potential in commercial forestry and well as intra-Africa trade. The African Continental Free Trade WE OFFER: African Continental Free Trade Area –
the year 2030. downstream development in the respective value Area will bring together 55 countries with a combined A supportive and growing ecosystem as a hub for innovation, technology and Further offerings in Africa in 2017 provide a platform for growth across
chain. population of more than one billion and a GDP of $2.2 trillion. financial technology. several sectors.