Today I went to an interactive session on “Doing Business with South Africa” organized by SICCI – The Southern India Chamber of Commerce & Industry and South African High Commission @ Taj Coromandel, Chennai. Here are some important pointers I gathered from that event, for people interested in engaging with South Africa economically –
- No. of Indians in South Africa: 1.5 Million, 3% of the population.
- South Africa accounts for 25% of the GDP of the entire African continent. Besides, the dignitaries claimed that SA is a good base for people wishing to do business with other African countries.
- They mentioned that companies investing in South Africa can take back 100% of the profits generated. There maybe some T&Cs, do check…
- Indian companies investing in SEZs in SA have lower corporate tax (15%) and are allowed duty-free imports of components used in production/assembly over there. Govt. also contributes a share of local training expenses.
- People who wish to know which sectors would attract upcoming investments could refer to Industrial Policy Action Plan and National Development Plan released by Govt. of SA.
- Tax incentives (12 i) are available for manufacturing investments; Incentives are also available for film/TV productions and a no. of other sectors.
- South Africa, it seems, has a lot of ore deposits like platinum, iron, etc. They have 80% of the manganese ores of the world. They are looking for companies/ partners who could help them “beneficate” (probably they mean process or convert into a product) these ores in South Africa itself.
- Opportunities are available to supply pharmaceuticals, especially generic medicines, and other medical equipment/devices.
- Most MNCs in South Africa (including major car industries) are 100% owned by the parent companies in the respective countries. The No. 1 automobile component they export is Catalytic Converter.
- SA has already invested more than $10 billion USD for renewable energy. Scope for RE industry in South Africa is good, going forward.
- Govt. plans to spend close to $2 billion USD over the next few years for developing sea ports. Opportunites for foreign investments abound in this sector also.
Have a look at South Africa at a Glance to know about the country.