In the article it is spoken about Positive Insights. When it comes to cost effective locations for starting a business, the Economist Intelligence Unit considers South Africa as one of the best choices for thriving entrepreneurs. South Africa ranked 10th out of 31 countries surveyed for cost effectiveness.
Several factors make South Africa among the places with the least expenses for starting businesses. Its exchange rate is very much favorable for business owners, with its beneficial effect on infrastructure quality and high living standards. Even though there are major changes in the currency market in recent years, the exchange rate in South Africa still has the capability to make commercial and residential properties affordable as compared to the world standards.
Aside from the business-friendly exchange rate, the energy cost in South Africa is also one of the lowest worldwide. The companies supplying energy to most parts of Africa is well known for its high standards in providing electricity n its jurisdiction. The country also has excellent oil price rates as compared to other places in the world. The favorable petroleum price is a major result of the refining and marketing of petroleum products by multinational companies as well as the private sector in southern Africa.
South Africa also provides low telecommunication cost for business purposes. The country’s approving of the license of a second fixed-line operator significantly reduces the cost of telecommunications. The existence of a new operator would effectively provide competition to the state company, which would eventually result to affordable telecommunication prices.
The labor cost in South Africa is also significantly lower as compared to other emerging markets in the world. In fact, the low labor cost has resulted to a surge in the country’s surge in labor productivity. With South Africa’s comprehensive labor legislation, the country’s labor relations have greatly improved from its decline in 1994. The corporate tax rate of South Africa is also much favorable as compared to other developing countries, in addition to the prospects of further reduction of tax rates.
South Africa also provides excellent services to local and foreign investors, placing it among the convenient countries to conduct business. According to reports from the World Bank, South Africa’s conducive environment for investors has led to the economic progress rate of the country up to an impressive six percent growth rate. The survey about the effectiveness of the country was based on several factors such as convenience of starting a business, employment of workers and registering business and properties.
These guidelines also include investment protection, border trading, enforcing contracts, tax payments and procedures in closing a business. The survey ranked 155 countries around the world in which South Africa got the 28th spot. The country’s performance is also recognized as the top ease-of-business ranking all over the African continent.
South Africa also has the industrial capability and cutting-edge technology that makes it an excellent choice for starting entrepreneurs. The industrial production growth of the country is highly remarkable as compared to other developing markets around the world. With South Africa’s quality standards and technological research, the country is renowned in the development of leading technologies in the fields of steel production, energy and fuels as well as information technology, deep-level mining and telecommunications.