With its new global focus and strategic geographical location, South Africa presents a highly competitive investment location.

The unique combination of a highly developed first-world economic infrastructure and a vibrant emergent market economy has given rise to a strong entrepreneurial and dynamic investment environment. Thus, living and working in this young democracy presents exciting opportunities and challenges for the entrepreneurial and energetic business community.

These include a sophisticated financial and physical infrastructure; good telecommunications and energy supply networks and one of the top 15 stock exchanges in the world. Other economic strengths include an abundance of natural mineral and metal resources, a growing and diversified manufacturing sector and potential to develop a strong tourism industry.

South Africa is also actively engaged in establishing preferential trade arrangements.

Besides offering a first world infrastructure and low-cost manufacturing base, an important factor favouring investment in South Africa today is the uniquely attractive, multi-layered investment incentive package offered to foreign investors by the central government, the provincial and city governments as well as the Industrial Development Corporation of South Africa. The Province-based Investment Promotion Agencies take foreign investors by the hand and provide a total industrial financing and support service to help investors through all the processes of establishing a business enterprise or manufacturing facility in South Africa. Each of our nine provinces has their unique strengths to offer you specific investment sector opportunities.

The South African government’s new economic development policies aim to promote industrial development and investment in the manufacturing sector by providing increased support for enterprises and by lowering the tariff structure generally. To date the SA Government has, in fact, moved ahead its WTO commitments in reducing import duties below the agreed levels in certain sectors.

An important step in the process of encouraging investment in South Africa was taken in the 2003/4 budget, when the basic corporate tax rate was reduced to 30%. A further important development was the removal of exchange control for non-residents. Foreign investors can now freely transfer capital; dividends and profits into and out of South Africa and taxes are no longer levied on dividends and interest paid.

A good guide for investors about the dynamics and principles involved in the South African business environment is the Investor's Handbook Publication.

For details on Korean investments in South Africa, click here.

For more specific information please contact Mr Sake van der Wal, Counsellor Economic.