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Reasons Why US Should Invest In South Africa

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A number of multinational corporations that have already set base in the country have cited several benefits resulting from doing business in the country. This paper is, therefore, written with the objective of reviewing the various reasons why U.S companies should invest in South Africa in their bid to enter the African continent.
Reasons Why United States Companies should Invest in South Africa According to southafrica.com (1), as a free market economy, South Africa has put in place a number of policies meant to encourage and attract foreign investments in both the public and private sectors. Amongst the notable aspects that attract foreign direct investments in the country takes in large population and access to the entire African population, …show more content…

Africa’s resultant age structure implies that approximately 40% of the populace is below eighteen years old (Börzel, Thauer and Hamann 215-221). As such, for demographically-motivated or youth-leaning commodities, the continent provides American organizations with the most dynamic growth market segments. Thus, as an emerging market, the African continent offers United States companies a market for their products and service, which in turn will translate into an increment in …show more content…

The trade pacts comprise the SADC Free Trade Agreement and SA-EU Free Trade Agreement. Also, virtually all the industries in South Africa are open to foreign investment and no government consent is needed. There are nearly no constraints on the type and degree of foreign investment. Other notable measures that have been taken by the government include investment incentives, uncomplicated tax rules, safeguarding of intellectual property rights and an enhanced regulatory policy regarding rivalry. In addition, South Africa offers better access to a variety of markets, either by sea (Indian Oceans and Atlantic) or on land (through other parts of Africa). Studies have also disclosed that South Africa is amongst the least costly regions, with first-rate amenities, in the globe to do business (Du_Toit 32-49). Given reports have also indicated that South Africa is ranked among the top nations with reference to the effortlessness of carrying out business

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