Doing business in South Africa is not for the fainthearted. In fact, South Africa dropped from 34th place out of 181 countries on the World Bank’s Ease of Doing Business ranking in 2009 to 82nd out of 192 countries last year, leaving the country trailing its African peers, including Mauritius (20), Rwanda (29) and Kenya (61), writes Sanisha Packirisamy in City Press.
It’s a pity that doing business in South Africa is perceived to be so difficult, because South Africa is nicely placed as the economic growth hub in Africa. After all, Africa is nowadays seen as one of the most exciting continents in the world to expand business for. Yet, the problem with Africa is that in many instances you can’t just arrive and start a business. Because Africa is mostly underdeveloped – therefore offering many business opportunities, but without the structures to support investors.
Nevertheless, South Africa is the second biggest economy in Africa. It is also the best developed with existing infrastructure, financial institutions and skilled labor. Sadly South Africa has regressed in stature and status as the first choice investment destination in Africa. Indeed, it’s even getting more difficult for small businesses doing business in South Africa.
So, let’s consider the challenges that face new business owners that want to open a venture in South Africa.