Establishing a Company in South Africa

The South African economy constitutes approximately one quarter of the African continent’s GDP. The country is rich in minerals and is situated atop the world's largest deposits of gold, diamonds, coal, and platinum. Unsurprisingly, these industries serve as the country’s main export sectors. Alongside these, South Africa’s modern, well-developed infrastructure, its breathtaking vistas, its expansive nature reserves, and its ethnic-cultural wealth, support a thriving tourism industry.

South Africa’s economic and financial center is located in Johannesburg, the country's largest and most populous city. South Africa’s economy is a free and well-developed, and there is little governmental involvement. The years of political isolation and economic sanctions forced upon the country because of its Apartheid governance, spawned an advanced industrial sector built to independently supply the country’s needs, and benefits from an abundance of cheap labor. Abolishment of the Apartheid regime and opening of the country’s economy to the world were fertile grounds for massive foreign investment and rapid growth.

With that, the long years of Apartheid left their mark in the form of capital being largely concentrated amongst relatively few. South Africa was and continues to be one of the world’s leaders in inequality and suffers from elevated unemployment rates.

Despite theses difficulties, the South African economy is rich with economic opportunity and long-term business potential. The scope of South Africa’s international trade leads the continent, by a wide margin from the rest of the African countries. Differently than the other countries, South Africa doesn’t rely on oil as it’s primary export, a fact that reflects the country’s commercial diversity. Most of the opportunities in South Africa are vis-à-vis the private sector, and Israeli companies have a relevant presence in South Africa in sectors that include industry, agricultural machinery, communications and more.