Why we love living in South Africa (2024)

South Africa is a beautiful country with a rich cultural heritage and diverse landscapes. But beyond its natural beauty, South Africa is also an attractive destination for those looking to invest or do business.

In this article, we will explore the reasons why we love South Africa.

South Africa has a developed and sophisticated financial sector. It is home to the Johannesburg Stock Exchange (JSE), which is the largest stock exchange in Africa and ranked in the top 20 globally by market capitalisation. This means that investors have access to a wide range of investment opportunities, including stocks, bonds, and derivatives. The JSE is also home to some of the world’s largest mining and commodity companies, which make up a significant portion of the South African economy.

For foreign investors in Africa, South Africa is a good destination for their capital. Anincreasing number of investors and industries are drawn to the nation because of its distinct value proposition. Today, South Africa is a resource-rich economy with access to both a thriving local market and a developing regional market, as well as a centre for finance, technology, and innovation that draws businesses eager to harness the talent pool in the nation.

One of the key drivers of this economy is the investment industry, which includes a wide range of funds that cater to investors with different risk profiles and investment objectives, allowing all investors to grow their wealth and achieve their financial goals. Despite the challenges posed by the global pandemic and other economic factors, the fund industry in South Africa remains robust and resilient. In fact, the country’s fund industry is one of the most well-established and highly regulated in the world, offering investors a high degree of security and transparency. For example, as of 31 January 2023, on average an aggressive equity fund would have one-year, three-year and five-year annual returns of 20%, 18.1% and 10.2% respectively and a conservative fund would have one-year and three-year annual returns of 12% and 9.9%.

South Africa has a well-established banking system with numerous local and international banks operating in the country. The banking sector is highly regulated, which ensures stability and security for investors. Additionally, the country has a well-developed financial services industry, including insurance, asset management, and investment banking, which further adds to the country’s financial strength.

South Africa also offers a range of tax incentives for businesses and investors. The country has a relatively low corporate tax rate of 27%, which is lower than many other developing countries. There are various tax incentives available for businesses operating in certain sectors, such as agriculture, tourism, and manufacturing. Furthermore, South Africa has numerous double tax treaties with other countries, which help to reduce the tax burden on international investors.

South Africa has a large and growing middle class, which offers numerous opportunities for businesses. The country has a population of over 59 million people, with a middle class estimated to be around 6.5 million people. This means that there is a significant market for consumer goods and services, including housing, healthcare, education, and entertainment. Additionally, the country has a young population, with over 60% of the population under the age of 35, which bodes well for future economic growth.

South Africa is rich in natural resources, including gold, platinum, diamonds, and coal. The country is one of the world’s leading producers of these resources, which contribute significantly to the economy. Furthermore, South Africa has a well-developed mining sector, which provides numerous employment opportunities and contributes to the country’s economic growth.

South Africa is a gateway to the rest of the African continent. The country has a well-developed infrastructure, including roads, railways, ports, and airports, which make it easy to do business in and around the country. Additionally, South Africa is a member of various regional economic communities, such as the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), which provide access to a market of over 600 million people.

In conclusion, South Africa is an attractive destination for those looking to invest or do business in Africa. While there are challenges, such as political instability and social inequality, South Africa’s financial strengths make it a country worth considering for those looking to invest in Africa.