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 South Africa Offers Many Investment And Trade Incentives
Investing in South Africa
The Department of Trade and Industry (dti) administers a wide range of trade and investment production programmes. It manages international trade agreements and incentives as well as local business support programmes. All business sectors are open to investors, no government approval is required and there are almost no restriction on the form or extent of foreign investment. The current tariff reform programme is specially aimed at lowering input costs for the producer, while import controls have been relaxed in line while import controls have been relaxed in line with South Africa’s world Trade Organization obligations, i.e. the general agreement on tariffs and trade. Exporters are granted incentives such as export marketing assistance, zero rating for value-added tax (VAT) on exports of goods and services and relief from various customs as well as excise duties.
 In order to encourage investors to establish or relocate industry and business to areas throughout South Africa, the country’s various provinces have development bodies that incentives, which may vary from area to area, including:
• reduced interest rates
• reduce rentals for land and buildings
• cash grants for the relocation of plants and employees
• reduced rates for basic facilities, rail age and other transport rebates
• assistance in the provision of housing.
Industrial, technology and agro tourism strategic development initiatives have been planned in various provinces and include the Maputo Corridor in Mpumalanga, the Gauteng special economic zone as well as the wild Coast in the Eastern Cape.
South Africa Export Incentives
In order to promote and support export trade, the dti has established various assistance programmes under the export marketing and investment assistance (EMIA) scheme. Assistance under this scheme compensates exporters for cost incurred, while developing export markets and attracting new foreign direct investment. EMIA initiatives include the following.
• Primary export market research reimburses some costs of contact with potential international clients including airfares, daily allowances, the transport of samples and production of marketing materials.
• Foreign direct investment research partially compensates the cost incurred in researching new foreign direct investment through visits to potential investors in foreign countries.
• Individual exhibitions reimburse a percentage of the costs of participating in trade fairs.
• Outward selling trade missions help exporters make contact with foreign buyers by providing assistance with flights, daily subsistence and the transport of samples but must be organized by a qualifying organization.
 The department also provides assistance to specific industry sectors to developed new exports markets in order to broaden the export base and to increase export participation by black economic empowerment companies and small businesses. South African manufacturers, export trading houses, commission agents and export councils can apply for assistance. Applications must be made at least one month in advance and they generally work on a reimbursement basis.
The industrial Development Corporation (IDC) offers financing at reduced rates for selected expansion schemes that are expected to result in increased foreign exchange earnings. In 2000. Legislation was passed that provided for the establishment of several industrial development zones, each linked to an international port or airport containing a customs-secured area. Each zone offers numerous services and attractive financial incentives.
South Africa Trade incentives
The dti provides a number of incentives, such as investment support, small business development and empowerment finance. The IDC operates throughout the country and offers financing services for numerous industries in order to assist in the establishment of manufacturing in South Africa and the Southern African region. Financing is generally provided in the form of a medium-to long-term low interest-rate loan.
The JSE is also a major provider of financial information. In everything is does, the JSE strives to be a responsible corporate citizen
The JSE prescribes listing requirements and monitors initial as well as ongoing compliance. Listing requirements, disclosure rules and continuing obligations have been harmonized whit those of the London Stock Exchange (LSE). In 2002, the JSE launched a free-float indexing system in conjunction with FTSE, a company that creates and manager indices and associated data services internationally. The FTSE/JSE African Index Series system replaces existing indices and provides foreign investors with a familiar indexing system.
 A leather in corporate governance and regulation
South Africa maintains an eminent standing globally in the area of corporate governance reform. The exchange has been part of that process, playing an instrumental role in creating the internationally prominent King II Code on Corporate Governance. The JSE’s listing requirements require all companies to adhere to key concepts of King II and all companies are required to report on their level of compliance whit the code in their annual financial statements.
Furthermore, the JSE has harmonized its listing requirements, disclosure and continuing obligations with those of the LSE and offers superb investor protection.
Fully automated efficient trading
• Trading takes place on the JSE’s equity market using the LSE’s trading platform.
• Agricultural and equity derivatives trading takes place an a locally developed electronic system.
World-class clearing and settlement
• On the cash equity market, the JSE has a ‘zero-failed’ trade record in terms of settlement ever since the inception in 1999 of STRATE, South Africa’s official Central Securities Depository (CSD) and guarantees settlement on the due date.
. On the equity derivatives and Yield-X markets, all trades are cleared and settled though a central counterparty, Safcom, the only licensed clearing house in South Africa. Safcom thus plays the role of risk manage.
Innovative surveillance
• Electronic real-time surveillance occurs on all the JSE’s markets.
• Our equities market is the only one in the world that conducts market surveillance and supervisor to individual client level on a real-time basic.
 World-class indices
• The JSE’s published equity indices are constructed, maintained and calculated according to the FTSE/JSE Africa Index Series Ground Rules. These indices are based on the free-float concept, representing only those held for strategic or control purposes. The indices are classified according to the industry classification benchmark (ICB) used by FTSE and Dow Jones.
• Upon request, the JSE also construct specialized and wand tailor-made indices, and writes equity derivatives products for these indices.
• The JSE Socially Responsible Investment (SRI) Index measures environmental and social sustainability concerns.
The JSE holds a treasure position as one of the top 20 exchange in the world in terms of market capitalization. As a respected brand associated with high market integrity, the JSE is regarded as a mature, efficient and secure market with world-class regulation, trading, clearing, settlement assurance and risk management.
Contribution of the percentage change in real value added by industries to the total real annual economic growth rate (real GDP and market prices)
• The relative size of each industry for the year 2008 is the share of its real value added of the GDP for the year 2007. Similarly, the relatives size of taxes less subsidies on products is the share of its value added of the GDP for the year 2007.
• The contribution is calculated by multiplying the percentage change of each industry (and taxes less subsidies on products) with its share of the GDP in the previous year, i.e. its relatives size.
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