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South Africa has enormous potential as an investment destination. It is one of the most sophisticated and promising emerging markets in the world with a unique combination of highly developed first world economic infrastructure with a vibrant emergent market economy. It is also one of the most advanced and productive economies in Africa. South Africa offers:

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ACCESS TO MARKETS

Located at the southernmost tip of the African continent, South Africa is ideally positioned for easy access to the countries comprising the Southern African Development Community (SADC), the islands off Africa's east coast, and even the Gulf States and India. SADC has a combined gross national product (GDP) of US$161,5 billion and some 185 million people.

South Africa also and serves as a trans-shipment point between the emerging markets of Central and South America and the newly industrialised nations of South and Far East Asia.

Not only is South Africa in itself an important emerging market, but it is also a minimum requirement for accessing other sub-Saharan markets. The country's borders with Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho, and its well-developed road and rail links provide the platform and infrastructure for ground transportation deep into sub-Saharan Africa. Moreover South Africa has resident marketing skills and distribution channels imperative for commercial ventures into Africa.

Major shipping lanes pass along the South African coastline in the South Atlantic and Indian oceans, through its seven commercial ports which form by far the largest, best equipped and most efficient network on the African continent. These ports are not only conduits for trade between South Africa and her partners in the South African Customs Union and Southern African Development Community, but also function as hubs for traffic emanating from, and destined for, Europe, Asia, the Americas and the east and west coasts of Africa. South African ports handle an average of 13 000 vessels carrying 500 million tons of cargo annually, with major upgrades currently underway to increase handling capacity and absorb the rapid increase in commercial traffic.

Transnet,the South African parastatal transportation company, is the primary provider of rolling stock and associated transportation services throughout the region.

The phenomenal growth in airline traffic since 1994 through the three major international airports in Johannesburg, Durban and Cape Town is due to the rapid growth of both tourism and business travel. There are four other international airports that serve the growing eco-tourist and commercial traffic in southern Africa through well-established air-links. Johannesburg International in particular is the most important regional hub with links to all the major centres in Europe, the United Kingdom, North and South America, the Indian sub-continent, the Far East, Australia and New Zealand.

Modern highways, trains, and airways make travel both comfortable and convenient, and as new ideas and technologies are embraced in partnership with foreign companies, South Africa continues to serve as the African role model for technological sophistication and advancement.

EXCHANGE RATE

South Africa has a real competitive advantage in that its exchange rate makes it one of the least expensive countries in which to do business, particularly one with a first world infrastructure and high living standards. The exchange rate makes commercial and residential property, labour, quality hotels and restaurants inexpensive by world standards.

SOPHISTICATED FINANCIAL MARKETS

South Africa boasts a sophisticated financial sector, with well-developed financial institutions and a stock exchange (Johannesburg Securities Exchange) that ranks among the top exchanges in the world.

The banking sector of South Africa compares favourably with that of industrialised countries. Foreign banks are well represented. Electronic banking facilities are extensive, with a nationwide network of Automatic Teller Machines (ATMs) and Internet banking facilities as a growth feature in this sector.

CUTTING-EDGE TECHNOLOGY

Technological research and quality standards are world-renowned. South Africa has developed leading technologies particularly in the fields of energy and fuels, steel production, telecommunications, deep-level mining, telecommunications and information technology.

SOUND ECONOMIC POLICY

The government’s macro-economic policy, the Growth, Employment and Redistribution (GEAR) strategy describes a vision of a competitive, outward-orientated growth platform. President Thabo Mbeki has made it clear that foreign direct investment is welcome and government policy supports the public pronouncements. Taxes have been reduced, tariffs lowered, the budget deficit brought under control and exchange controls relaxed.

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