Source: Pan-African Investment & Research Services (Pty) Ltd

1. Key Manufacturing Sub-Sectors South Africa: Furniture Manufacturing

Furniture manufacturing in South Africa is labour-intensive and holds substantial potential for job creation. Despite facing challenges in demand, both locally and internationally, the sector remains a promising area for investment.

Investment Opportunities and Advantages:

• Job Creation: With its labour-intensive nature, the furniture sector is crucial for creating employment opportunities, particularly for semi-skilled and unskilled workers.
• Market Potential: There is significant potential for growth in both domestic and export markets. By investing in this sector, foreign investors can tap into the increasing demand for quality furniture products globally.

2. Key Manufacturing Sub-Sectors South Africa: Agro-Processing

Agro-processing is a pivotal sub-sector within South Africa’s manufacturing industry. It involves the transformation of primary agricultural products into finished goods, thereby adding value to raw materials from agriculture, fisheries, and forestry. This sub-sector is not only crucial for job creation but also for boosting exports and stimulating business investments.

Investment Opportunities and Advantages:

• Sustainable Employment Creation: The agro-processing industry is labour-intensive, making it a significant driver of employment. By investing in this sector, foreign investors can contribute to job creation while benefiting from a motivated and available workforce.
• Export Growth: South Africa’s diverse climate and rich agricultural resources provide a solid foundation for the agro-processing sector to flourish. Investments can help expand the country’s export base, particularly in processed food products, beverages, and wood products.
• Business Linkages: The sector offers strong backward linkages to primary industries and forward linkages to secondary and tertiary sectors, ensuring comprehensive economic growth and integration.

Poultry

The poultry industry is the largest segment of South Africa’s meat sector, accounting for a significant portion of the country’s total meat production. This sector has shown remarkable resilience and growth potential, making it an attractive area for foreign investment..

Investment Opportunities and Advantages:

• Production Expansion: The South African poultry sector is continuously evolving with ongoing investment plans aimed at expanding production capacities. Modernization of facilities and adoption of advanced technologies are critical to enhancing productivity and efficiency. Foreign investors can play a pivotal role in this transformation by bringing in capital, expertise, and innovative solutions.
• Job Creation: The poultry industry is labour-intensive and plays a vital role in job creation, particularly in rural areas where employment opportunities are limited. Investment in this sector can help alleviate poverty and improve living standards by creating numerous job opportunities across the value chain, from farming to processing and distribution.
• Increasing Domestic Demand: The demand for poultry products in South Africa is on the rise, driven by population growth and changing dietary preferences towards affordable protein sources. Investing in the poultry sector can help meet this growing demand and ensure food security.
• Export Potential: There is significant potential for exporting poultry products to neighbouring African countries and beyond. By enhancing production capacities and meeting international standards, South Africa can position itself as a major exporter in the global poultry market.

Sugar

The sugar industry is another key component of South Africa’s agro-processing sector. Despite facing challenges such as fluctuating global sugar prices and environmental concerns, the industry remains vital to the economy and offers promising investment opportunities.

Investment Opportunities and Advantages:

• Sustainability Initiatives: The sugar industry is increasingly focusing on sustainable practices to address environmental challenges. Investments in sustainable farming practices, renewable energy production, and efficient water usage are crucial for the long-term viability of the sector. Foreign investors with expertise in sustainability can drive these initiatives and contribute to the industry’s resilience.
• Diversification and Value Addition: There is substantial potential for diversification within the sugar industry. Investments in value-added products such as biofuels, bioplastics, and other sugar derivatives can open new revenue streams and reduce dependency on traditional sugar markets. This diversification can enhance the sector’s competitiveness and profitability.
• Export Market Expansion: South Africa’s sugar industry has a well-established export network. By investing in improving production efficiencies and meeting international quality standards, the industry can further expand its export market share. This expansion is particularly promising given the increasing global demand for high-quality sugar and related products.
• Rural Development and Employment: The sugar industry is a significant employer in rural areas, providing jobs and supporting local economies. Investments aimed at modernizing the industry and improving operational efficiencies can lead to increased employment opportunities and contribute to rural development.

3. Key Manufacturing Sub-Sectors South Africa: Automotive Industry

The automotive sector is one of South Africa’s success stories, contributing 4.3% to the GDP and employing over 100,000 people. It remains a significant exporter, showcasing the country’s manufacturing capabilities on the global stage.

Investment Opportunities and Advantages:

• Export-Oriented Growth: The automotive industry in South Africa is well-integrated into global markets, with substantial export activities. Foreign investors can leverage this established network to gain access to international markets.
• Innovation and Development: Continued investments in the automotive sector can drive technological advancements and innovation, further solidifying South Africa’s position as a manufacturing hub.

4. Key Manufacturing Sub-Sectors South Africa: Steel Industry

The steel industry, though currently under pressure due to global demand fluctuations and rising energy costs, remains a vital part of South Africa’s industrial landscape. It is closely linked to the construction, automotive, and mining sectors, providing essential materials for these industries.

Investment Opportunities and Advantages:

• Infrastructure Development: Investments in the steel industry can support and benefit from the growth in South Africa’s infrastructure projects, including construction and mining activities.
• Economic Integration: The steel sector’s backward and forward linkages with other industries offer a comprehensive growth path, ensuring sustained demand and utilization of steel products.

5. Key Manufacturing Sub-Sectors South Africa: Pharmaceuticals

The pharmaceutical manufacturing sector is essential for improving healthcare outcomes in South Africa. It offers significant opportunities for growth and investment, particularly in the production of essential medicines and healthcare products.

Investment Opportunities and Advantages:

• Growing Healthcare Needs: As the demand for healthcare services and products continues to rise, investing in the pharmaceutical sector can yield high returns while addressing critical health needs.
• Regulatory Support: The South African government’s support for the pharmaceutical industry, including favourable policies and incentives, makes it an attractive area for foreign investment.

Conclusion

South Africa’s manufacturing sector, with its diverse sub-sectors, offers a wealth of opportunities for foreign investors. By investing in key areas such as agro-processing, automotive, furniture, steel, pharmaceuticals, poultry, and sugar, investors can benefit from the country’s rich resources, skilled labour, and supportive government policies. The potential for job creation, export growth, and technological innovation makes South Africa a compelling destination for manufacturing investments. As the country continues to revitalise and grow its manufacturing sector, foreign investors have a unique opportunity to contribute to and benefit from this dynamic and evolving landscape.

Source: Revitalising SA’s Manufacturing Sector 

The post Key Manufacturing Sub-Sectors South Africa: Key Opportunities for Foreign Investors appeared first on InterGest.

Der südafrikanische Fertigungssektor ist seit langem eine tragende Säule der Wirtschaft des Landes, entwickelt sich ständig weiter, expandiert und spielt sowohl auf den lokalen als auch auf den globalen Märkten eine entscheidende Rolle. In diesem Artikel untersuchen wir, warum Südafrika als Produktionszentrum auf dem afrikanischen Kontinent glänzt und warum es das wichtigste Ziel für ausländische Unternehmen ist, die Wachstum anstreben.

Die zentralen Thesen:

1. Der Fertigungssektor Südafrikas leistet einen starken Beitrag zum BIP des Landes und liegt im Jahr 2022 bei 11,4 %. Er umfasst ein vielfältiges Spektrum an Teilsektoren, von der Automobilindustrie über Luft- und Raumfahrt bis hin zu Chemie und IKT.
2. Die Afrikanische Kontinentale Freihandelszone (AfCFTA) stellt eine überzeugende Chance für südafrikanische Hersteller dar und bietet Zugang zu einem riesigen Markt mit 1,3 Milliarden Menschen und einem gemeinsamen BIP von über 3 Billionen US-Dollar.
3. Eine robuste Leistung mit stetigem Industriewachstum zeigt die Fähigkeit des Sektors, sich von vorübergehenden Abschwüngen zu erholen, und wichtige Standorte mit qualifizierten Arbeitskräften und einer robusten Infrastruktur unterstützen Produktionszentren.
4. Die Fertigungslandschaft Südafrikas entwickelt sich weiter, wobei der Schwerpunkt auf umweltfreundlichen Praktiken, der Umschulung für die Stabilität der Lieferkette, Investitionen in Technologie und der Entwicklung von Fähigkeiten liegt, um den sich ändernden Anforderungen der Industrie gerecht zu werden.

Wirtschaftskraftwerk:

Südafrikas Fertigungssektor leistet einen robusten Beitrag zum BIP des Landes und liegt im Jahr 2022 bei 11,4 %, was 3 Billionen Rand entspricht. Mit rund 1,5 Millionen Arbeitnehmern, die den schnellen Fortschritt vorantreiben, ist es ein Motor der wirtschaftlichen Entwicklung.

Leistung der produzierenden Teilsektoren Südafrikas im August 2023:

Im August 2023 zeigte Südafrikas verarbeitendes Gewerbe bemerkenswerte Widerstandsfähigkeit und verzeichnete einen Produktionsanstieg von 1,6 % gegenüber dem Vorjahr. Dieses Wachstum markierte den fünften Expansionsmonat in Folge und übertraf die Markterwartungen eines Anstiegs von 2,3 %. Beeindruckenderweise trugen neun von zehn Produktionsbereichen zu dieser positiven Entwicklung bei.

Vielfältige und robuste Teilsektoren des verarbeitenden Gewerbes:

Südafrikas Produktionslandschaft umfasst eine Vielzahl von Teilsektoren, von denen jeder seine Stärken hat. Zu diesen Teilsektoren gehören:

• Automobilindustrie: Als wichtiger Akteur im globalen Automobilbau verfügt der Automobilsektor über umfangreiche Wertschöpfungsketten und ist ein bedeutender Exportmotor.
• Luft- und Raumfahrt und Verteidigung: Die Luft- und Raumfahrt- und Verteidigungsindustrie wächst stetig und konzentriert sich sowohl auf nationale als auch auf internationale Märkte. Südafrika verfügt über die Infrastruktur, Fähigkeiten und Kapazitäten, um diesen Sektor zu unterstützen.
• Chemie- und Pharmaindustrie: Die Chemie- und Pharmaindustrie ist robust und zunehmend exportorientiert. Südafrikas starker Pharmasektor gewann während der COVID-19-Pandemie durch die lokale Produktion und den Export von Impfstoffen an Bedeutung.
• Agrarverarbeitung: Die Agrarverarbeitung, einschließlich der Lebensmittel- und Getränkeproduktion, ist ein bedeutender Sektor. Es nutzt die landwirtschaftlichen Ressourcen Südafrikas, um eine breite Palette von Produkten zu produzieren und zu exportieren. Der Teilsektor der Agrarverarbeitung gilt als einer der wichtigsten Treiber des verarbeitenden Gewerbes. Chancen für KMU in diesem Bereich liegen in Bereichen wie Verarbeitung, Logistik, Ausbildung und Kompetenzentwicklung, Qualitätssicherung und Maschinen.
• Metalle und Maschinenbau: Südafrika verfügt über einen gut etablierten Metall- und Maschinenbausektor, der eine Reihe von Metallprodukten, Maschinen und Geräten herstellt. Trotz globaler Herausforderungen, einschließlich Wettbewerb und Schwankungen der Rohstoffpreise, ist dieser Sektor widerstandsfähig und bietet erhebliche Wachstums-, Innovations- und Beschäftigungsaussichten. Unterstützt durch eine robuste Infrastruktur und einen zunehmenden Fokus auf Nachhaltigkeit bleibt es ein Eckpfeiler des südafrikanischen Wirtschaftswachstums.
• IKT und Elektronik: Südafrikas IKT- und Elektronikfertigungssektor gilt als florierende und wesentliche Säule der Wirtschaft des Landes. Die Aktivitäten dieser dynamischen Branche umfassen die Elektronikproduktion, die Halbleiterfertigung, bahnbrechende Softwareentwicklung sowie hochmoderne Forschungs- und Entwicklungsbemühungen. Ein bemerkenswertes Merkmal dieses Sektors ist seine ausgeprägte Fähigkeit, die Schaffung von Arbeitsplätzen, insbesondere in hochqualifizierten Positionen, zu fördern, und seine aktive Beteiligung an internationalen Kooperationen und Exporten. Während Südafrika in das Zeitalter der digitalen Transformation eintritt, spielt der IKT- und Elektroniksektor eine zentrale Rolle, indem er Innovationen vorantreibt und wesentlich zur Expansion der digitalen Wirtschaft des Landes beiträgt. Während bestimmte Herausforderungen wie die digitale Kluft und Cybersicherheitsbedenken angegangen werden müssen, bietet dieser Sektor erhebliche Aussichten für zukünftiges Wachstum und Weiterentwicklung.

Der AfCFTA-Vorteil:

Die 2021 ins Leben gerufene Afrikanische Kontinentale Freihandelszone (AfCFTA) bietet ein verlockendes Angebot. Mit Zugang zu einem Markt mit über 1,3 Milliarden Menschen und einem gemeinsamen BIP von über 3 Billionen US-Dollar profitieren südafrikanische Hersteller von reduzierten Zöllen und einem optimierten Handel im Rahmen der AfCFTA, was die regionale Integration und Industrialisierung fördern.

Wichtige Standorte und Nachhaltigkeit:

Größe und Standorte der Produktionszentren:

Die verarbeitende Industrie Südafrikas ist beträchtlich, trägt über 13 % zum BIP des Landes bei und beschäftigt einen erheblichen Teil der Arbeitskräfte. Während die Produktionszentren über das ganze Land verteilt sind, sind Gauteng, KwaZulu-Natal, West- und Ost Kap wichtige Standorte. Diese Regionen beherbergen zahlreiche Produktionsstätten und profitieren von Infrastruktur, qualifizierten Arbeitskräften und der Nähe zu Märkten.

Fertigungstrends:

Die Trends in der industriellen Fertigung im Jahr 2023 und in den Folgejahren werden von technologischen Fortschritten und Regierungsinitiativen geprägt sein, darunter dem US-amerikanischen CHIPS and Science Act, der 50 Milliarden US-Dollar für die heimische Halbleiterindustrie vorsieht, und dem Infrastructure Investment and Jobs Act, der 1,2 Milliarden US-Dollar bereitstellt Billionen für Verkehr und Infrastruktur. Weitere große Trends sind die Reaktionen der Branche auf den Fachkräftemangel und Lieferkettenunterbrechungen, die durch die Pandemie verschärft wurden, sowie das wachsende Engagement für Nachhaltigkeit. Zukunftsorientierte Hersteller investieren in „Smart Factory“-Initiativen und integrieren fortschrittliche Datenanalysefunktionen, um die Planung zu verfeinern, Designzyklen zu beschleunigen und einen besseren Einblick in die Lieferkette und Herstellungsprozesse zu erhalten.

• Investitionen in Technologie: Führende Hersteller investieren in die folgenden drei Haupttechnologiebereiche; Robotik und Automatisierung, um die Fertigung zu beschleunigen, Kosten zu senken und den Arbeitskräftemangel zu lindern; Datenanalysen, um Prognosen zu verbessern und Lieferengpässe zu erkennen, bevor sie sich auf die Produktionslinie auswirken; und IoT, um Daten von Sensoren in der Fabrikhalle zu sammeln und zu analysieren, die in Industrieanlagen eingebettet sind, um die Fertigung, die Nachverfolgung der Lieferkette und die Produktwartung zu verbessern.
• Kompetenzentwicklung: Die Nachfrage der Hersteller nach traditionellen Fertigkeiten, die körperliche, praktische Arbeit erfordern, wird im nächsten Jahrzehnt voraussichtlich um 30 % zurückgehen, während ihre Nachfrage nach technischen Fertigkeiten um 50 % steigen wird. Allerdings finden die Hersteller immer noch nicht genügend Maschinisten, Schweißer, Metallarbeiter, Produktionsleiter und andere Branchenkenner. Die Zusammenarbeit zwischen der Regierung und Interessenvertretern der Industrie fördert weiterhin die Kompetenzentwicklung und Berufsausbildung, um den sich wandelnden Anforderungen des verarbeitenden Gewerbes gerecht zu werden.
• Grüne Fertigung: Südafrika erlebt derzeit einen zunehmenden Übergang zu umweltbewussten Herstellungspraktiken, der die weltweiten Befürchtungen hinsichtlich der ökologischen Nachhaltigkeit widerspiegelt. Dieser aufkommende Trend umfasst die Integration umweltfreundlicher Verfahren, Materialien und Technologien in den Herstellungsprozess. Unternehmen setzen sich dafür ein, ihren CO2-Fußabdruck zu verringern, Abfall zu reduzieren und wertvolle Ressourcen zu schonen. Südafrikanische Hersteller ergreifen zunehmend nachhaltige Maßnahmen, die von energieeffizienten Produktionstechniken bis hin zur Verwendung recycelter Materialien reichen. Dieser strategische Wandel unterstreicht nicht nur die Verantwortung des Unternehmens für die Umwelt, sondern steht auch im Einklang mit der wachsenden Nachfrage der Verbraucher nach umweltfreundlichen Produkten und macht die umweltfreundliche Fertigung zu einem bedeutenden Trend, der die Branche beeinflusst.
• Reshoring: Reshoring ist ein wachsender Trend in der südafrikanischen Produktionslandschaft, der durch Unterbrechungen der globalen Lieferkette, steigende Arbeitskosten in einigen Offshore-Destinationen und die Notwendigkeit einer widerstandsfähigen Lieferkette vorangetrieben wird. Südafrikanische und internationale Unternehmen bewerten die Vorteile der heimischen oder regionalen Produktion neu. Durch Reshoring wollen sie Risiken in der Lieferkette reduzieren, die Qualitätskontrolle verbessern und ihre Reaktionsfähigkeit auf Marktschwankungen verbessern. Dieser Trend fördert das Wachstum der lokalen Fertigung und steigert möglicherweise die Beschäftigungsmöglichkeiten und die lokale Wirtschaftsentwicklung. Südafrikas strategische Lage und gut entwickelte Infrastruktur machen es zu einer attraktiven Wahl für Unternehmen, die die Stabilität ihrer Lieferkette verbessern möchten.

Zusammenfassend lässt sich sagen, dass die Fertigungsindustrie Südafrikas nach wie vor ein dynamischer und wichtiger Teil der Wirtschaft des Landes ist, sich kontinuierlich an die sich ändernde globale Dynamik anpasst und nach Möglichkeiten auf regionalen und internationalen Märkten sucht. Während das Land weiterhin durch diese Trends navigiert und die Vorteile der AfCFTA nutzt, bleibt es ein wichtiger Akteur in der afrikanischen Produktionslandschaft. Südafrika bietet ein einladendes Umfeld für ausländische Unternehmen, die ihre Geschäftstätigkeit erweitern möchten.

Bei InterGest South Africa wissen wir, dass die Erschließung neuer Märkte eine Herausforderung sein kann, und wir sind hier, um Ihren Markteintritt reibungsloser zu gestalten. Als vertrauenswürdiger Partner bieten wir unschätzbare Einblicke, Markteintrittsstrategien und fachkundige Beratung, um Ihre Geschäftsexpansion in Südafrika zu erleichtern. Unser Team steht Ihnen jederzeit zur Verfügung, um alle Fragen oder Bedenken zu beantworten, die Sie möglicherweise haben, wenn Sie diese aufregende Gelegenheit nutzen. Gemeinsam können wir das Potenzial des dynamischen Fertigungssektors Südafrikas nutzen und Ihrem Unternehmen helfen, in dieser dynamischen Landschaft erfolgreich zu sein. Ihr Erfolg ist unser Erfolg und wir freuen uns darauf, Sie bei Ihrer Investitionsreise in Südafrika zu unterstützen.

The post Chancen im südafrikanischen Fertigungssektor nutzen appeared first on InterGest.

South Africa has always been an attractive investment destination to investors seeking to expand their business activities into Africa and 2023 is no different. With Africa being a large and lucrative market to break into when done correctly, South Africa presents itself as a promising gateway.

Confidence in South Africa as an investment destination

South Africa is a thriving democracy with an advanced and diverse economy, a sophisticated and well-regulated financial sector, and extensive transport, telecommunications and energy infrastructure. South Africa’s government continues to work hard to create a dynamic and enabling business environment that will promote South Africa as the best investment destination amongst foreign countries looking to expand their business activities into Africa.

In 2018, South Africa embarked on an ambitious investment drive, which aimed to raise $100 billion in new investment over five years. — which at the time translated to R1.2 trillion — over five years. To date, the investment drive has achieved 95% of this target in investment commitments over the last four years whereby 2023 will be the last instalment of the Presidential Investment Conference. This confirms the continued interest in utilising South Africa as an investment destination from both foreign and local companies.

As part of the investment drive, the country is intensifying efforts to improve the business environment. The government has further put in place a “very attractive package of incentives” administered by the Department of Trade Industry and Competition (DITC) with the main aim to assist potential investors in identifying opportunities and facilitating a seamless investment process.

• World-class infrastructure and logistics

South Africa is the best performer in Africa for trade facilitation logistics. The transport sector is a key contributor to South Africa’s competitiveness in global markets. South Africa’s world-class infrastructure and undeniable position as a foothold into the rest of Africa. According to the Logistics Performance Index (LPI), South Africa has the highest trade logistics performance in Africa.

The country’s network of roads and highways has a total length of 750,000 kilometres resulting in long distances having to be covered to reach the more remote parts of the country. The air and rail networks are the largest on the continent while South Africa’s port efficiency has improved considerably as a result of investment in new assets such as ship-to-shore cranes and other supporting handling equipment.

• Largest presence of multinationals

South Africa has one of the most sophisticated business environments in sub-Saharan Africa and strong state institutions, which are key to its status as a regional economic powerhouse and often the first country that multinationals consider when expanding their business activities into Africa.

Another strong pulling factor for multinationals to set up companies in South Africa is the country’s resilient and stable banking sector. The private business regulatory climate is also regarded to be one of the most conducive in Africa while the tax regime is progressive and includes several incentives for non-South Africans.

South Africa prides itself to be an investment-friendly environment and has piqued interest amongst global investors through increasing engagement and networking. As one of the most open economies in the world (exports and imports collectively represented approximately 51% of GDP in 2020), and with preferential access to numerous global markets.

Many multinational companies also use South Africa as a gateway to the rest of Africa due to the number of trade incentives that have been set in place between the African countries. One such example is The African Continental Free Trade Area (AfCFTA) which provides manufacturers based in South Africa the opportunity to increase the volume of trade with the balance of the continent. As it stands, more than 37% of goods made in South Africa are destined for other African countries.

• Manufacturing Hubs

According to The DITC South Africa’s well-established manufacturing sector presents numerous opportunities to potential investors that are considering South Africa as a potential investment destination. The sector’s diverse industry means investors are spoilt for choice towards which industries they wish to explore.

South Africa’s manufacturing sector presents multiple reasons why South Africa remains an attractive investment destination. The sector is well-established, possesses advanced technologies to produce quality goods and is strategically placed to provide businesses with access to the rest of the African continent.

In 2022, the manufacturing industry increased by 1.5% in the third quarter, contributing 0.2 of a percentage point to the country’s overall Gross Domestic Product GDP growth. An impressive 7 of the 10 manufacturing divisions reported positive growth rates in the third quarter, (Stats SA). The value added by manufacturing to the GDP in South Africa was measured at approximately 545,507 million South African rand in the third quarter of 2022.

Of the 10 manufacturing divisions, the largest positive contributions were made by the motor vehicles, parts and accessories. This is mainly due to South Africa housing some of the world’s biggest automotive companies including Mercedes-Benz, Nissan, BMW, Ford, and Toyota to name a few. The favourable government policies, ease of doing business, low tariff rates, reasonable labour practices and availability of low-cost skilled labour all contribute to why these worldwide brands chose to invest functional plants on South African soil. The vehicle and component production forms an integral part of the economy and has accounted for nearly 30 percent of the country’s manufacturing output.

Other top manufacturing divisions are that of the petroleum, chemical products, rubber and plastic products. While niche industries such as food processing, beverages, motor manufacturing and wood products have reached maturity, there remain further ripe opportunities for foreign direct investment.

• Internet

When it comes to the internet, South Africa is one of Africa’s leading markets alongside Nigeria. Over the past century, South Africa has worked hard to position itself strategically as a hub for Africa’s digital economic revolution. South Africa’s internet quality remains the best in Africa. South Africa is ranked amongst the top-performing countries according to the Digital Quality of Life (DQL) Index. The study considers a country’s internet affordability and quality, electronic infrastructure, security, and how digitally advanced its government is.

The boom in internet traffic in South Africa has been supported by higher speeds and improved fibre infrastructure. Driving internet traffic growth is the need for large file transfers, cloud computing and remote working resulting in the country’s average speed increasing three-fold between 2016 and 2021, from 6 Mbps to almost 18 Mbps.

This has not gone unnoticed by tech companies. Netflix, for example, announced an investment of $60 million at the annual South Africa Investment Conference, in a bid to help South African creatives bring high-quality stories to a global audience. With that said, there is still a lot of room for improvement – presenting opportunities to foreign investors looking to expand into Africa.

• Emerging market

The South Africa of today [2023] is one of the most sophisticated and promising emerging markets globally. This is mainly due to the unique combination of a highly developed first-world economic infrastructure and a huge emergent market economy that has given rise to a strong entrepreneurial and dynamic investment environment.

South Africa’s dream of emerging as an economic powerhouse, capable of using all the talent and brainpower at its disposal, while alleviating poverty and significantly lowering the staggering unemployment numbers, is an achievable reality. The world has shown its solidarity and aid behind this sentiment by investing and making significant pledges in a bid to cement its support towards South Africa.

Furthermore, the increased growth in purchasing power opens new opportunities for both consumers and foreigners looking to enter the market. South Africa’s economy was originally based on agriculture and mining, but this has changed over the years. With services and manufacturing now contributing the greatest share to GDP. The country’s economy is reasonably diversified with key economic sectors including mining, agriculture and fisheries, vehicle manufacturing and assembly, food processing, clothing and textiles, telecommunication, energy, financial and business services, real estate, tourism, transportation, and wholesale and retail trade.

Conclusion

South Africa has set itself apart as an emerging economic hub. South Africa remains an investment destination of choice for many global corporates, with more than 180 Fortune Global 500 companies having a footprint in the country.

With developed first-world economic infrastructure and a growing emerging market, South Africa’s investment potential lies in its diversity of sectors and industries, South Africa is also a major trading nation, exporting and importing billions worth of goods globally every year.

InterGest South Africa has been assisting multinational companies to enter the market successfully for the past 20 years. Our services and systems are designed to assist the exporting company in the establishment and administration of a foreign branch, subsidiary, or a direct selling organisation. From market entry through to the setup, recruitment, financial administration (accounting, payroll, tax), management of subsidiaries and sales organisation, identification of local sales partners, and legal services, we are able to assist multinational companies at all stages of their business journey into Africa.

For a full range of our services, click here: https://intergest.co.za/our-services-administrative-experts/

Get in touch today! Send us an email at contact@intergest.co.za

Sources:

https://brandsouthafrica.com

https://businesstech.co.za/news/finance/649255/big-surprise-for-south-africas-economy/

https://www.pwc.com/gx/en/transportation-logistics/publications/africa-infrastructure-investment/assets/south-africa.pdf

The post South Africa as an Investment Destination appeared first on InterGest.

Having operated in the industry for the past 20 years, we have come across many foreign companies that have had trouble finding the right distributor or agent in Africa. For foreign companies to succeed in Africa, the key is to find a distributor partner or agent in South Africa that can assist them with establishing a strong route to market while building brand credibility of the product that has newly entered the African market.

For a successful market entry strategy, the foreign company will need to invest time and effort into identifying the right distributor partner or agent whose strategy and goals are aligned with that of the company. I’m, sure, as many of you reading this have noticed, that in Africa, the issue isn’t the lack of distributors or agents, but rather the lack of trustworthy, credible, and skilled partners. Unfortunately, the truth is that it’s easy to get your fingers burnt in Africa if you’re not careful.   

Before we continue, it is important to note that the term Distributor and Agent mean two very different things. Let’s start by defining what the functions of each are:

What is a Distributor?

Distributors purchase products from foreign suppliers and hold a certain amount of stock locally to be resold to their customers.  There are two types of distributor agreements, exclusive and non-exclusive. In the case of exclusive distributors, the distributor is the only party that is responsible for the resale of the products in a certain territory. The distributor will not be permitted to engage in the distribution of any other products. In the case of non-exclusive distributors, the manufacturer can hire multiple distributors in a specific territory who engage in the distribution of the same products of the supplier.

What is an Agent?

Agents negotiate sales on behalf of foreign suppliers and earn a  pre-agreed commission. The supplier ships their products directly from their premises to the customer. The agent keeps the agreed commission, and the supplier received the rest of the funds due to them.  In legal terms, an “agent” is a representative who, for and on behalf of the foreign supplier, introduces a third party to the supplier’s products by soliciting orders from the third party or concludes contracts with the third party on behalf of the foreign supplier. Agents usually charge between 3 – 25% commission, depending on the value of the goods.

CHECKLIST TO SELECTING THE RIGHT DISTRIBUTOR OR AGENT

The key to successfully entering a new market lies in finding the right partners to work with you to develop the awareness of your product in the African market that you plan on expanding into.

• Be clear on what you expect

Developing a clear idea of whom you are looking for gives you the best chance of finding the right partner. When selecting a new distributor/ agent, it is essential that you establish a list of requirements before meeting with potential distributors or agents.

• Select your preferred territory and sales channels

If a product is suitable for more than one channel, you could always choose to use multiple channels such as listing your product online and making use of a distributor simultaneously.  This increases your exposure to the African market and could result in increased sales.

• Select the right distribution strategy for your business

Finding a partner that is willing to support your business as a newcomer to the African market is very important because if the distributor or agent doesn’t think the product will generate long-term growth, a lack of interest and support, sharing of information and inclination to grow the business will occur.

• Marketing support 

Find a partner that is serious about marketing the products that they have on hand either through social media or email marketing. This is important because it will ensure that your products reach a broad market of potential buyers. Marketing starts with the foreign supplier providing the distributor or agent with sufficient marketing material. This includes high-resolution images of the products and detailed product specifications/information.

• Pre-determine the commission structure

Commission structures in South Africa for distributors or agents depend upon the contract concluded when entering into business with the distributor or agent. The commission is usually charged as a percentage of the total value of the sale. These rates can range from 3 to 25 percent (%) commission per concluded transaction. Companies sometimes pay a retainer fee plus costs and an incentive scale on deals.

• Seek distributors or agents with modern solutions

As African B2B trade starts to evolve, foreign suppliers/companies should be adamant about going into business with a distributor or agent who is proactive, build networks with your relevant target market and is focused on building a route-to-market strategy. The partner that you choose should stay ahead with modern trends such as having an eCommerce platform from which they market your products to a wide target audience.

• Financial stability

Financial stability is obviously of great concern for many companies doing business in Africa. Foreign suppliers need to ensure the distributor has the financial capability to take the business on. We cannot stress this enough, as this is a trap that many foreign suppliers fall into, please ensure that you receive your money before letting go of your goods.

• Investigate the credibility

It is imperative that before doing business with any distributor or agent you investigate their credibility. Consider their existing capability on route to market, whom they partner with and how the company goes to market with new products.  You can also request that full due diligence is conducted on your potential partner before entering into an official agreement.

In conclusion, to succeed in Africa, you need a reliable partner that you can trust with a solid market entry strategy. The best chance for a foreign company to succeed in Africa is to have a local presence and a partner that understands your local target market.  So, if you are looking at expanding into Africa or struggling to find a suitable distributor or partner, you may want to consider bringing in an expert consultant who specialises in African strategy such as InterGest South Africa.  

InterGest South Africa has been assisting foreign companies successfully enter the African market for the past 20 years. We offer you unparalleled support in designing the perfect and affordable market strategy. We can assist with sourcing the appropriate distributor or agent as well as alternative market entry services such as Go2Africa or our B2B wholesale platform, Enterprise Africa.

For more information, please send an email to contact@intergest.com

The post A GUIDE TO SELECTING THE RIGHT DISTRIBUTOR OR AGENT IN SOUTH AFRICA appeared first on InterGest.

Goals of the Electra Mining Africa 2022 Expo

For many companies, the Covid Pandemic meant less exposure – thus the opportunity to showcase new technologies and innovations at this years’ expo was greatly welcomed.

This year’s event aimed to ignite investor relations & export potential and increase investments, effectively highlighting South Africa’s ability to design and manufacture world-class products.

Eric Bruggeman, CEO of the South African Capital and Equipment Export Counsil (SACEEC), said that the SACEEC aims to drive localisation in the manufacturing space, utilising platforms like the Elektra Mining Expo and the Local Southern African Manufacturing Expo as part of their so called “inward buying mission”.

Inward buying and localisation aim to create jobs, drive investor relations and showcase South Africa’s strengths and abilities, thereby strengthening exports and improving the South African economy.

The North-South Corridor

Another element to strengthen exports is the received significant interest in the North-South Corridor (NSC).

The NSC programme was designed as a transit and transport value chain to address transport issues in a sequential and multi-modal manner.  It includes interlinked projects addressing road infrastructure, road transport facilitation, railway system and rail infrastructure management, physical and operational improvements at border crossings, port infrastructure, air transport management and energy interconnections.

The Electra Mining Innovation Awards

On the evening of the 9^th of September, the Electra Mining Innovation Awards took place. In this ceremony, the SACEEC engaged with international delegates from countries around the world including the Netherlands, Russia, Peru, Chile and Ecuador. Additionally to these international participants, African countries including Zambia, the Democratic Republic of Congo, Ghana and Kenya have expressed interest in participating in upcoming trade expos in South Africa.

Challenges

The manufacturing and export sectors of South Africa are facing a number of challenges that, according to Bruggeman, need to be addressed urgently.

Local manufacturers need a constant supply of power to maintain machinery uptime. Currently, South Africa is experiencing between 2 and 6 hours of downtime a day. To combat this, the planned solar and wind energy projects should be fast tracked.

Bruggeman added that the state of the countries ports and transport infrastructure needs to be further improved to be able to fully exploit the export potentials. According to him, South African ports need to be properly maintained and upgraded to give potential investors and international customers the assurance that products will arrive at their destination on time and intact.

A further challenge is the availability of well-priced raw materials. Through recycling and reusing, the country should be able to cater for most manufacturers’ raw material requirements without the need to import. The method of recycling and reusing will also facilitate an increase in jobs, upskilling of workers and a decrease of manufacturing turnaround times.

Opportunities in South Africa – The South African Steel and Metal Fabrication Master Plan 1.0

To combat the forementioned challenges, the Department of Trade, Industry and Competition (DTIC) together with industry stakeholders and government facilitators, have set the foundation for the so-called “South African Steel and Metal Fabrication Master Plan 1.0”. 

It is estimated that, through the plan, about 200.000 tonnes and up to 500.000 tonnes of imported final products could be replaced. This would create approximately 800 direct jobs and add about ZAR 7 billion to the countries’ GDP.

Lately, imports in the manufacturing and automotive sectors have seen their market share grow. According to Bruggeman, the current focus should be on the construction, automotive and mining industries’ manufacturing space. He sees this as essential pillar in the development of the steel and engineering industry. He believes that export and manufacturing are an essential part of the countries’ future and emphasized that while the Master Plan is still in the early stages, it should not simply remain a plan, but action needs to be taken to reach the next level of implementation soon.

Source:

• https://www.engineeringnews.co.za/article/manufacturers-must-increase-export-potential-export-council-2022-09-09

The post Opportunities in South Africa showcased at Electra Mining Expo 2022 appeared first on InterGest.

Use Lean manufacturing

One of the first things you can do to save money is to apply a Lean manufacturing principle, which is all about doing more with less. Waste is one of the factors that limit production and may include the waste of resources, time, or workspace. Often this is also coupled with overlooking the skills of your employees and not taking advantage of your manufacturing tools. A financial cost is also always included in this waste.

Lean manufacturing means getting rid of this waste and instead utilising every aspect of the production process to add value and therefore not lose value by creating too much waste. To do more with less, reviewing how you source your raw materials and other production inputs is a great place to start. Lean manufacturing covers all the means of eliminating this waste and improving production whilst allowing you to use less human effort, fewer resources, less equipment, less time, and less space.

Labour Costs

The cost of labour is often another area where companies are burdened with hidden costs over time. The cost of finding and training new workers often holds hidden costs that can be exorbitant over time, so hiring a core focus of employees and keeping them happy is usually a better business tactic. A successful labour reduction strategy must balance resourcing and production overhead, but how do you reduce labour costs in manufacturing without laying off part of the workforce?

To achieve a successful labour reduction strategy, it is important to review your workforce to help you determine whether you’re overpaying or even simply paying for a job not done. This can be done by balancing man-machine activities to maximize the potential of your workforce. Having versatile employees that can multitask and fill up other less-tasking roles is also very helpful, which can be done by training them accordingly. Overtime and overscheduling are two of the largest contributors to exorbitant labour costs, as many manufacturing companies have employees working at non-peak times or low production times. To avoid this, ascertain when your high and low peak times are, so that you can appropriately organize your production flow and staff shifts.

Employee Training and Safety

Another way to cut costs is to train your core focus of employees – not only to ensure efficient business operation and save money long-term, but also to reduce work errors and workplace accidents radically, decreasing the business’ potential liabilities. Periodic training will further motivate your employees and maintain their loyalty to the company.

A factor that many companies often overlook – which influences labour costs – is safety. By providing a safe work environment you improve the safety of your employees, protect your company from unforeseeable liabilities, and this way save money in the long run. Moreover, by ensuring that certain health and safety standards are implemented, you decrease the potential for work hazards and keep your workforce in good shape, further decreasing potential sick leaves or absences.

Reduction of energy usage

Every manufacturing business requires energy to function and the costs thereof can often be high if you are not careful. Cutting your energy costs can be a great way to reduce the costs of production. Different ways of reducing energy costs include using LED lights, which use little energy to run; installing smart thermostats and sensors to manage heating and cooling functions of equipment or facilities; repairing leaks in air-conditioning; investing in energy-efficient manufacturing equipment and turning off equipment when it is not being used.

Using smart technology to schedule Shut-Downs and Start-Ups is another way to save costs on energy. During off-peak season or hours, you can schedule a shutdown of the production area. Powering off machines or equipment during off-production hours or weekends will help reduce energy consumption by a large percentage

Implementing good manufacturing practices

Successful manufacturers will tell you that you need to continue to give the consumer what they want – at unwavering high levels of quality. To maintain this high standard of quality it is important to implement a respectable level of good manufacturing practices, otherwise referred to as the GMPs. The GMPs of your company not only represents a critical aspect of providing goods that are made with the best possible production practices, but also a great branding opportunity to establish your business as a producer of safe and sustainable products.

Ensuring that your manufacturing company uses quality control, standardization, and good manufacturing processes is essential for both local and global companies, as these challenges will lead to a hike in the cost of production if not followed. A established standardised production process will save money in the long run as it saves time and space in the preparation and the actual production process, making processes more efficient.

Technology and Automation

Considering that automation and technology are becoming a big part of various industries these days, finding the perfect combination between human resources and technology is becoming ever more important. The use of technology, be it with robotics or artificial intelligence, has transformed manufacturing businesses into what they are today. Adapting automation for repetitive manual tasks in your production processes is therefore one of the easiest ways to reap the rewards of technology. These repetitive manual tasks may include E-Mails and push notifications, data backups and restorations, sale orders, or even invoicing. By implementing this type of automation into your manufacturing process, work is completed faster and more efficiently, whilst also ensuring a higher quality output, which will enable your company to save manufacturing costs in the long run.

Machinery is another area where money is often lost because often, manufacturing companies tend to buy new machinery once their current machine breaks, which can become an extremely costly habit. Instead, companies should conduct routine equipment maintenance. Machinery should be regarded as an investment and not an expense, so keeping your machines in working order is vital. It is important to adopt periodical preventive and predictive maintenance processes, whereby you routinely lubricate machinery to avoid rust, replace filters, and clean your machinery regularly.

Logistics and shipping

Logistics and shipping are other cost factors that manufacturing companies face when they move their products around too much, which often results in damages or high packaging and shipping costs. Minimizing the distance and time spent transporting products is therefore important when decreasing overall production costs. The solution to this problem is finding packaging and shopping solutions that are more efficient, environmentally friendly, and cost friendly.

Additionally, using in-house services is advisable when saving costs instead of outsourcing deliveries. Building long-lasting relationships with suppliers and freight companies may also be beneficial in this regard. By negotiating on rates and building mutual respect between your company and suppliers and freight couriers,  

Lastly, a common practice is to send off excess material to landfills, but why do this when the company can make a profit from those scrap materials instead? Selling scrap materials such as metals, batteries, and electronics, to vendors is a useful approach to making a profit and ensuring that your company is ‘green’ and eco-friendly.

The post Manufacturing companies – How to save money in 2021 appeared first on InterGest.

The Tool industry in Africa is very diverse and consists of several sub-segments. It is mainly assigned to the metal industry and describes the manufacture of hand tools, machine tools, metalworking tools and agricultural equipment.

The African power tool industry alone is forecast to grow up to approximately US$ 7.3 billion by 2027. Africa is experiencing rapid urbanisation and the African Free Trade Area (AfCFTA) is expected to boost intra-African trade by reducing tariffs. Increasing investment in African housing has led to a significant increase in demand for tools. Infrastructure is still in need of development in many African regions.

As African trade grows and infrastructure expands in many countries, demand for tools is bound to increase.

The tools most frequently imported into African markets are machine tools, hand tools as well as power and drawing tools. Since the Covid 19 pandemic, more and more business in the tool industry is also being done online. Both B2C and B2B E-Commerce are growth markets across Africa.

African tool markets with high growth potential include Nigeria, South Africa, Kenya and Botswana.

The tool industry in South Africa

The manufacturing industry is an important cornerstone of the South African economy. The direct tooling industry alone represents a ZAR 15 billion (approx. € 906.24 million) market in South Africa. However, it has been suffering from technological stagnation, loss of capacity and competitiveness, lack of transformation and increased imports for several years. Local production went down from 80% of the market to about 20%.

In 2019, South Africa imported machinery worth approximately US$21.2 billion and tools & instruments with a total value of US$2.61 billion, of which 22.5 % came from Germany. The country is one of the most important importers of German machine tools. In 2014, for example, South Africa was responsible for 60 % of the Africa turnover of the German company Bosch.

The tool industry in Nigeria and Kenya

Nigeria imported machinery worth about US$10.4 billion and tools & instruments worth a total of about US$639 million in 2019. This includes, for example, power tools worth US$48.9 million. Of these tools, 15.7% were imported from the United Kingdom and 12.5% from Germany.

From Germany, Nigeria imported machinery worth about US$501 million and tools & instruments worth about US$47.5 million in 2019. From Switzerland, the country imported machinery worth about US$40.9 million and tools & instruments worth about US$16.4 million in 2019. In the same period, Nigeria imported machinery worth about US$ 56.2 million and tools & instruments worth about US$ 2.79 million from Austria.

Kenya, on the other hand, imported machinery worth about US$3 billion and tools & instruments worth a total of US$271 million in the same year.

From Germany, Kenya imported machinery worth about US$172 million and tools & instruments worth about US$33 million in 2019. From Austria, the country imported machinery worth about US$19.7 million and tools & instruments worth about US$5.28 million. From Switzerland, Kenya imported machinery worth about US$ 16.2 million and tools & instruments worth about US$ 5.43 million.

Opportunities for companies from the DACH region

The countries of the DACH region already export tools of all kinds to African markets. Tool manufacturers from the DACH region can benefit from the growing demand for tools in Africa by maintaining existing connections and expanding networks.

Growing infrastructures, the AfCFTA facilitated intra-African trade and the “Made in Germany / Austria / Switzerland” seal offer companies from the tool industry in the DACH region good opportunities to expand their business in Africa or to enter the market for the first time.

Conclusion

Tools and machines are in demand in African markets. The demand for tools and machines continues to rise, especially due to the expansion of infrastructures, the growing population and the facilitation of intra-African trade.

Local manufacturers are often no longer able to meet this entire demand due to a lack of innovation. For this reason, tool imports to African countries have risen considerably in some cases in recent years. African markets offer opportunities for international tool and machine manufacturers to enter the market and expand their business. The E-Commerce sector, in particular, continues to grow and offers opportunities to strongly expand B2B business.

About InterGest

Let us competently market your products in the fastest growing African economies.
Our focus is on the major economic hubs of the continent.

We offer you the opportunity to sell your products in South Africa as a Level 2 BBBEE supplier to bulk buyers.

For more information please send an Email to contact@intergest.co.za

The post Tool industry in Africa – Opportunities for European companies: appeared first on InterGest.

Wie Sie vielleicht wissen, handelt es sich bei SEZs um geographisch festgelegte Gebiete eines Landes, die speziell für gezielte wirtschaftliche Aktivitäten vorgesehen sind, die durch Sonderregelungen (zu denen auch Gesetze gehören können) und Systeme unterstützt werden, die sich oft von denen unterscheiden, die im Rest des Landes gelten.

Ein Bericht, der 2019 von der Konferenz der Vereinten Nationen für Handel und Entwicklung (UNCATD) veröffentlicht wurde, ergab, dass die ausländischen Direktinvestitionen (FDI) in Afrika zugenommen haben und wahrscheinlich durch die Einrichtung von Sonderwirtschaftszonen weitere wirtschaftliche Aktivitäten steigern werden. Dem Bericht zufolge gibt es schätzungsweise 237 eingerichtete Sonderwirtschaftszonen in Afrika. Bis heute gibt es SEZs in 38 der 54 Volkswirtschaften des Kontinents. Der Bericht bestätigt ferner, dass zu den SEZ-Programmen in den drei größten Volkswirtschaften des Kontinents Südafrika, Nigeria und Ägypten gehören.

Südafrika nutzt SEZ und Industrieentwicklungszonen (Industrial Development Zones – IDZ) als Teil seiner Exportförderungsstrategie, die durch Handelspräferenzen unterstützt wird, um ausländische Unternehmen zum Aufbau von Produktionsstätten zu ermutigen und die Gründung eines Unternehmens in Südafrika zu fördern.

Investoren, die in einer SEZ tätig sind, profitieren durch Steuer- und Finanzanreize, die Investoren außerhalb der ausgewiesenen Zonen nicht zur Verfügung stehen. Zu den weiteren Vorteilen gehören der Zugang zu verbesserten wirtschaftlichen Schwellenwerten im Hinblick auf eine ausgewogene soziale und wirtschaftliche Infrastruktur sowie Transport- und Logistiknetze. Es hat sich auch erwiesen, dass SEZs dazu neigen, spezielle Talente für Manager und technische Arbeitskräfte aus der ganzen Welt anzuziehen, was den Transfer von Fähigkeiten an die Bürger der Zonen erleichtert.

Bis heute ist die größte SEZ auf dem afrikanischen Kontinent in Bezug auf Anzahl und Wert der Investitionen die Sonderwirtschaftszone Coega, die sich in der Nelson Mandela Bay Metropolitan in Südafrika befindet. Die Sonderwirtschaftszone ist bekannt für ihre globale Wettbewerbsfähigkeit durch eine Infrastruktur von Weltklasse, Steueranreize, Rabatte und eine zollfreie Zone. Die Zone wurde ursprünglich für die Produktion einschließlich der Veredelung von Exportgütern, Investitionen, die Entwicklung von Fertigkeiten und die Schaffung von Arbeitsplätzen errichtet.

Gründe, warum die Coega-SEZ für Investoren attraktiv ist, die sich in Südafrika niederlassen wollen.

Die SEZ bietet die folgenden Hauptmerkmale:

• Clustering für Synergie und Integration der Lieferkette
• Erleichterung des Zugangs zu staatlichen Anreizen (auf lokaler, provinzieller und nationaler Ebene).  Die Anreize umfassen und sind nicht auf einmalige und/oder wiederkehrende Zuschüsse für beschränkt:
• Ausländische Investitionen (als Ausgleich für die qualifizierten Kosten für die Verlagerung neuer Maschinen und Ausrüstungen [ausgenommen Fahrzeuge] aus dem Ausland)
• Exportmarketing (Entwicklung neuer Märkte)
• Investieren/Re-Investieren in produktives Vermögen
• Entwicklung von Fähigkeiten
• Schaffung von Arbeitsplätzen (die nationalen und provinziellen Zuschüsse können gleichzeitig in Anspruch genommen werden)

• Maßgeschneiderte Lösungen für Investoren, z.B. betreute Standorte, zweckmäßige Gebäude
• Benutzerdefinierte kontrollierte Bereiche
• Umwelthilfe (falls zutreffend)
• Fortgeschrittene Infrastruktur
• Marketing und andere Mehrwertdienste
• ICT Services Base Infrastructure: Infrastruktur, die die Konnektivität von Sprach-/Daten-/Internet- und Videodiensten ermöglicht.
• Unterstützung bei Sicherheits-, Gesundheits-, Umwelt- und Qualitätsdiensten, z. B. UVP-Verfahren.

Sollten Sie daran interessiert sein, die Sonderwirtschaftszonen in Südafrika zu nutzen und sie als Tor zu den übrigen afrikanischen Märkten zu nutzen, dann könnte unser Go2Africa-Dienstleistungsangebot die Lösung sein, die Sie benötigen. Wir können Sie bei der Verkaufsentwicklung, Buchhaltung, Personalbeschaffung, Personaldienstleistungen, Steuer- und Umsatzsteuer und Firmengründung unterstützen.

Für weitere Informationen senden Sie bitte eine E-Mail an contact@Intergest.co.za. Einer unserer freundlichen Mitarbeiter wird sich in Kürze mit Ihnen in Verbindung setzen.

_________________________________________________________________________________

Market Entry into Africa

If you are thinking of investing in South Africa, it’s worth looking at some of the rapidly developing Special Economic Zones (SEZ) and industrial hubs that are evolving in strategic locations across the country.

As you may know, SEZs are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country.

A report published by the United Nations Conference on Trade and Development (UNCATD) in 2019 revealed that Foreign Direct Investment (FDI) in Africa increased and is likely to increase further economic activity due to the establishment of Special Economic Zones. According to the report, there are an estimated 237 established SEZs in Africa. To date there SEZs are found in 38 of the 54 economies on the continent. The report further confirms that SEZ programmes in the three largest economies on the continent include South Africa, Nigeria and Egypt.

South Africa uses SEZs and Industrial Development Zones (IDZ) as part of its export promotion strategy, backed by trade preferences to encourage foreign companies to set up manufacturing facilities and to encourage setting up a company in South Africa.

Investors that conduct business in an SEZ will benefit by receiving tax and financial incentives that are not available to investors outside the designated zones. Further benefits include access to improved economic threshold with respect to a balanced social and economic infrastructure, as well as transport and logistics networks. It has also been proven that SEZs tend to attract special managerial and technical labour force talent from around the world which facilitates the transfer of skills to the citizens of the Zones.

To date, the biggest SEZ on the African continent in terms of number and value of investments is the Coega Special Economic Zone, which is located in the Nelson Mandela Bay Metropolitan in South Africa. The SEZ is well known for its global competitiveness through world-class infrastructure, tax incentives, rebates and a duty-free zone. The Zone was originally built for manufacturing including beneficiation of export goods, investment, skills development and job creation.

Reasons why the Coega SEZ is an attractive to investors wanting to establish operations in South Africa.

The SEZ offers the following key features:

• Clustering for synergy and supply chain integration
• Facilitation of access to government incentives (local, provincial and national).  The incentives include and is not limited to one-time and/ or recurring grants for:
• Foreign Investment (compensated for the qualifying costs of moving new machinery and equipment [excluding vehicles] from abroad)
• Export Marketing (new market development)
• Investing/re-investing in Productive Assets
• Skills Development
• Job Creation (the national and provincial grants can be accessed concurrently)

• Customised Solutions for Investors e.g. serviced sites, fit-for purpose buildings
• Custom Controlled Areas
• Environmental Assistance (where applicable)
• Advanced Infrastructure
• Marketing and other Value-added Services
• ICT Services Base Infrastructure: infrastructure which allows for the connectivity of voice/data/internet and video services.
• Support with Safety, Health, Environment and Quality Services, for example EIA Process.

Should you be interested in taking advantage of the Special Economic Zones in South Africa and using it as a gate way to gain access to the rest of the African markets, then our Go2Africa service offering could be the solution that you need. We can assist you with your sales development, accounting, recruitment, HR services, tax and vat, and company incorporation.

For more information, send an email to contact@Intergest.co.za and one of our friendly staff will get back to you shortly.

Quelle / Source:: https://www.thedti.gov.za/industrial_development/sez.jsp

The post MARKTEINTRITT IN AFRIKA appeared first on InterGest.

Südafrika hat eine etablierte, diversifizierte Produktionsbasis entwickelt, die ihre Widerstandsfähigkeit und ihr Potenzial im Wettbewerb der Weltwirtschaft unter Beweis gestellt hat. Als regionales Produktionszentrum ist es die am stärksten industrialisierte und diversifizierte Wirtschaft des Kontinents. Südafrika ist eine Wirtschaft des oberen Mittelklasseeinkommens – als eines von nur acht Ländern in Afrika.

Der Produktionssektor ist ein Ort, an dem das Wachstum anderer Aktivitäten – wie z.B. Dienstleistungen – stimuliert und spezifische Ergebnisse wie die Schaffung von Arbeitsplätzen und die Stärkung der Wirtschaft erzielt werden können. Die südafrikanische Fertigungsindustrie bietet die Möglichkeit, das Wachstum und die Entwicklung des Landes erheblich zu beschleunigen. Die verarbeitende Industrie ist die viertgrößte Industrie des Landes und trägt 14% zum Bruttoinlandsprodukt (BIP) bei.

Das verarbeitende Gewerbe wird von Branchen wie der Agroverarbeitung, der Automobilindustrie, der chemischen Industrie, der Informations- und Kommunikationstechnologie, der Elektronik, der Metall-, Textil-, Bekleidungs- und Schuhindustrie dominiert.

Agrarverarbeitende Industrie

Südafrika weist ein breites Klimaspektrum auf – von semi-ariden und trockenen bis hin zu subtropischen Klimazonen. Infolgedessen gibt es eine Vielzahl von Nutzpflanzen, Vieh und Fischen.

Diese Industrie umfasst die Verarbeitung von Süßwasser-Aquakultur und Marikultur, exotisches und einheimisches Fleisch, Nüsse, Kräuter und Früchte. Sie umfasst auch die Produktion und den Export von Laubobst, die Herstellung von Weinen für den lokalen Markt und den Exportmarkt, die Herstellung und den Export von Süßwaren sowie die Verarbeitung von Naturfasern aus Baumwolle, Hanf, Sisal, Kenaf und Ananas.

Infrastruktur von Weltklasse, Gegensaisonalität zu Europa, große Artenvielfalt und Meeresressourcen sowie wettbewerbsfähige Inputkosten machen das Land zu einem wichtigen Akteur auf den Weltmärkten.

Präferenzhandelsabkommen, wie der Africa Growth and Opportunity Act (AGOA) für den US-Markt und das Freihandelsabkommen mit der Europäischen Union gewähren großzügige Vorteile.

Wo investieren?

KwaZulu-Natal, Limpopo, Mpumalanga und das Westkap dominieren die Obst- und Gemüseproduktion Südafrikas. KwaZulu-Natal und Mpumalanga sind wichtige Drehscheiben für die Zuckerproduktion. Während das Ostkap, Free State, Nordkap und Nordwesten wichtige Zentren für die Getreide- und Viehzucht sind. Die südafrikanische Weinindustrie konzentriert sich auf das Westkap.

Die Automobilindustrie

Die Automobilindustrie ist einer der wichtigsten Sektoren Südafrikas, wobei viele der großen multinationalen Konzerne Südafrika für die Beschaffung von Komponenten und die Montage von Fahrzeugen sowohl für den lokalen als auch für den internationalen Markt nutzen. Die südafrikanische Automobilindustrie ist ein globaler, turboaufgeladener Motor für die Herstellung und den Export von Fahrzeugen und Komponenten.

Die Automobil- und Zulieferindustrie eignet sich hervorragend für Investitionsmöglichkeiten. Fahrzeughersteller wie BMW, Ford, Volkswagen, Daimler und Toyota haben Produktionsstätten im Land, während Komponentenhersteller (Arvin Exhaust, Bloxwitch, Corning, Senior Flexonics) hier ebenfalls Produktionsstandorte errichtet haben.

Die Industrie ist größtenteils in zwei Provinzen angesiedelt, dem Ostkap (Küste) und Gauteng (Binnenland). Unternehmen mit Produktionsstätten in Südafrika können von den niedrigen Produktionskosten profitieren, verbunden mit dem Zugang zu neuen Märkten aufgrund von Handelsabkommen mit der Europäischen Union und der Freihandelszone der Entwicklungsgemeinschaft des südlichen Afrika. Chancen liegen auch in der Produktion von Werkstoffen (Automobilstahl und Komponenten).

Chemikalien

Südafrikas chemische Industrie, einschließlich der Brennstoff- und Kunststoffherstellung sowie der pharmazeutischen Industrie, ist die größte ihrer Art in Afrika und wurde von der Regierung als eine der wichtigsten Triebkräfte des Wirtschaftswachstums identifiziert.

Sie dominiert das verarbeitende Gewerbe in Südafrika, schafft mehr Wert für die Wirtschaft als jeder andere Sektor und macht mehr als die Hälfte der Arbeitsplätze aus, die durch das verarbeitende Gewerbe insgesamt geschaffen werden. Während die Industrie nach wie vor von lokalen Unternehmen dominiert wird, haben eine Reihe von multinationalen Unternehmen lokale Vertriebsstellen, und mehrere haben sich in der lokalen Fertigung engagiert.

Der südafrikanische Chemiesektor weist zwei auffällige Merkmale auf. Erstens: Während der vorgelagerte Sektor konzentriert und gut entwickelt ist, ist der nachgelagerte Sektor – obwohl vielfältig – nach wie vor unterentwickelt. Zweitens ist die synthetische, auf Kohle und Erdgas basierende Flüssigbrennstoff- und Petrochemieindustrie herausragend, wobei Südafrika bei der kohlebasierten Synthese und den Gas-to-Liquids-Technologien weltweit führend ist.

Produktionszentren in Südafrika:

Wenn Sie daran denken, in Südafrika zu investieren, lohnt sich ein Blick auf einige der sich rasch entwickelnden Industriezentren, die sich an strategischen Standorten im ganzen Land entwickeln.

• Dube Tradeport Special Economic Zone
• Richards Bay Industrial Development Zone (Rbidz)
• The Coega Special Economic Zone
• Ekurhuleni Aerotropolis

SOUTH AFRICA – A REGIONAL MANUFACTURING HUB

South Africa has developed an established, diversified manufacturing base that has shown its resilience and potential to compete in the global economy. As a regional manufacturing hub, it is the most industrialized and diversified economy on the continent. South Africa is an upper-middle-income economy – one of only eight such countries in Africa.

The manufacturing sector provides a locus for stimulating the growth of other activities – such as services – and achieving specific outcomes, such as employment creation and economic empowerment. South Africa’s manufacturing industry presents an opportunity to significantly accelerate the country’s growth and development. Manufacturing is the country’s fourth largest industry, contributing 14% to the gross domestic product (GDP).

Manufacturing is dominated by industries such as agro-processing, automotive, chemicals, information and communication technology, electronics, metals, textiles, clothing and footwear.

Agro-processing Industry

South Africa exhibits a wide range of climates – from semi-arid and dry, to sub-tropical. As a result, a variety of crops, livestock and fish are to be found.

This industry spans the processing of freshwater aquaculture and mariculture, exotic and indigenous meats, nuts, herbs and fruit. It also involves the production and export of deciduous fruit; production of wines for the local and export market; confectionary manufacturing and export; and the processing of natural fibres from cotton, hemp, sisal, kenaf and pineapple.

World-class infrastructure, counter-seasonality to Europe, vast biodiversity and marine resources, and competitive input costs make the country a major player on the world’s markets.

Preferential trade agreements, such as the Africa Growth and Opportunity Act (AGOA) for the US market, and the free trade agreement with the European Union confer generous benefits.

Where to Invest?

KwaZulu-Natal, Limpopo, Mpumalanga and the Western Cape dominate South Africa’s fruit and vegetable production. KwaZulu-Natal and Mpumalanga are key hubs for sugar production. While the Eastern Cape, Free State, Northern Cape and North West are key centres for grain and livestock farming. Lastly, South Africa’s wine industry is concentrated in the Western Cape.

Automotive Industry

The automotive industry is one of South Africa’s most important sectors, with many of the major multinationals using South Africa to source components and assemble vehicles for both the local and international markets. South Africa’s automotive industry is a global, turbo-charged engine for the manufacture and export of vehicles and components.

The automotive and components industry is perfectly placed for investment opportunities. Vehicle manufacturers such as BMW, Ford, Volkswagen, Daimler and Toyota have production plants in the country, while component manufacturers (Arvin Exhaust, Bloxwitch, Corning, Senior Flexonics) have established production bases here.

The industry is largely located in two provinces, the Eastern Cape (coastal) and Gauteng (inland). Companies with production plants in South Africa are placed to take advantage of the low production costs, coupled with access to new markets as a result of trade agreements with the European Union and the Southern African Development Community free trade area. Opportunities also lie in the production of materials (automotive steel and components).

Chemicals

South Africa’s chemicals industry, including fuel and plastics fabrication as well as pharmaceuticals, is the largest of its kind in Africa, and has been identified by the government as a key driver of economic growth.

It dominates manufacturing in South Africa, adding more value to the economy than any other sector and accounting for over half the jobs created by manufacturing as a whole. While the industry remains dominated by local companies, a number of multinationals have local distribution points and several have become involved in local manufacture.

The South African chemicals sector has two noticeable characteristics. Firstly, while its upstream sector is concentrated and well developed, the downstream sector – although diverse – remains underdeveloped. Secondly, the synthetic coal and natural gas-based liquid fuels and petrochemicals industry is prominent, with South Africa being the world leader in coal-based synthesis and gas-to-liquids technologies.

Manufacturing hubs in South Africa:

If you’re thinking of investing in South Africa, it’s worth looking at some of the rapidly developing industrial hubs that are evolving in strategic locations around the country.

• Dube Tradeport Special Economic Zone
• Richards Bay Industrial Development Zone (Rbidz)
• The Coega Special Economic Zone
• Ekurhuleni Aerotropolis

Source/Quelle:

https://www.sanews.gov.za/https://www.brandsouthafrica.com/

The post SÜDAFRIKA – EIN REGIONALES INDUSTRIEZENTRUM appeared first on InterGest.