South Africa is a
modern country with substantial business opportunities available. The
government is actively encouraging foreign investment and involvement in the economy.
South Africa until 1994 was isolated form the global economy and basically operated in isolation. Sanctions on US businesses prevented the US business community from either investing in South Africa or in many cases, even doing business in the country. With the removal of sanctions,
US business is returning and finding many opportunities in a market where there is
strong and significant commitment to rapid growth of a middle class.
The African continent is an
emerging continent with a potential of becoming a strong market within the next ten years. South Africa is a country with
modern infrastructure and easy access to the sub Saharan continent. From South Africa. any sub Saharan country can be easily accessed via either
land or air routes. It is a natural location for product distribution throughout the sub Saharan continent. With the major port facilities on both Durban and Cape Town,
global markets are also easily accessible for import or export.
The apartheid government under FW De Klerk was a socialist government which owned all the business providing all infrastructure services. With the democratization of the country, the new
government has committed to an economy based on free competition and is aggressively selling state owned assets. These sales create
opportunity for direct purchase and partnering to expand and improve these services as well as identify sector opportunities as the previously bloated state entities
"corporatize" and spin off non-core functions.
The government is
committed to identify improvement projects such as
corridor improvements between Johannesburg and Maputo, Mozambique, the
generation and distribution of electrical power and the
introduction of natural gas distribution and sales, to name a few. Specific projects of this nature create
opportunities for significant investment and returns above the expected norm in much of the more developed countries.