Monday, 03 October 2022

In Finance

Get a Plan and Invest in South Africa

(Sponsored) - There are vast business opportunities in South Africa, for small, medium, to large scale business operations, that only a solid business plan can maximise and profit thereof. Unless you are optimistic, you will never see the low hanging fruits of the South African economy.

South Africa is the leading investment destination in Africa, and starting a business in it requires planning, compliance and commitment. 

South Africa is the most advanced, diversified, and productive economy in Africa. Boasting one of the most pro-business environments on the continent, South Africa is a logical and attractive option for U.S. companies seeking to enter the Sub-Saharan Africa marketplace. 

The US government, via their international trade department, encourages US companies to export and do business in South Africa because of its geographic advantages, its incubator model, ease of African penetration, and SA government's receptiveness to JVs. 

New-to-market (NTM) companies should consider South Africa’s geographic advantages, logistics infrastructure, widespread use of the English language, and relatively transparent legal processes, which make it a low-entry threshold country. The business environment (legal, publicity, marketing, forensics, process outsourcing, etc.) is arguably the best in Africa. 

South Africa is a business incubator for new-to-market ideas; as the middle class in Africa grows, business models launched in and from South Africa will find easier acceptance in other Sub-Saharan Africa markets.

The penetration of South African companies and agencies into Africa makes finding the right partner to collaborate with in third markets a low-risk business development model.

South African companies are receptive to various partnering arrangements with U.S. companies, ranging from agency to licensing, joint ventures (JVs), mergers, and acquisitions; some South African companies hope to enter the U.S. market through similar arrangements.

As the most advanced and broad-based economy on the continent, South Africa still offers exporters and investors a diverse and mature economy with proven financial and other service sectors, as well as preferential access to export markets in the European Union, and the Southern African Development Community (SADC).

Commercial standards are generally comparable to those in most developed economies; U.S. investors find local courts fair and consistent, and institutions are well developed. Similarly, democratic life is well established with transparent and contested elections; an appreciation for the rule of law; a free, vibrant, and outspoken press; and citizens maintaining significant pride in the constitution and the peaceful formation of the post-apartheid state.

It is very important to note that companies seeking to do business in South Africa will need to adapt to Broad-Based Black Economic Empowerment (B-BBEE) policies. These policies aim to redress economic imbalances among historically disadvantaged communities to facilitate socio-economic transformation through granting procurement preferences on government contracts (including SOEs), based on a company’s level of B-BBEE achievement. Procurement preferences and other benefits are based on a company’s B-BBEE certification level which it receives through a scorecard assessing points based on equity ownership, management control, skills development, and socio-economic development.  Foreign companies often do well on the skills development and socio-economic development criteria.  Equity ownership and management control may present greater challenges.  A few foreign companies have addressed the ownership element of B-BBEE by negotiating “equity equivalency” programs with the Department of Trade, Industry, and Competition that emphasize training and development of local companies.  

Some of the most common sectors that are seeing a lot of startup and investment in South Africa include Energy, Retail, Ports and Marine, Aviation, Environmental Technology, Rail Infrastructure, Agricultural Sector, Mining Equipment, Agribusiness, Healthcare: Medical Devices and Pharmaceuticals, Automotive, Green Building Technologies, Information Technology, Travel & Tourism, Education, and Franchise.

The South African economy expanded by 0.8 percent in 2018 and by 0.2 percent to $350 billion in 2019. However, the Covid-19 pandemic has led to a 7 percent contraction to $302 billion in 2020; as a result, GDP per capita has dropped to 2005 levels. Inflation is low and interest rates are at record lows.

For the Optimist, this creates an opportunity to create productivity growth worth over US$40 Billion to restore the US$350 Billion levels. There is business in South Africa for those who can look at opportunity.

The vast business opportunities available in South Africa, however, require good business planning and market strategy, as provided by GetAPlan.co.zaGetAPlan.co.za is a planning and strategy consulting service for business owners in South Africa and Africa, helping them raise and manage investment, effectively and profitable. 

Unconventionality comes with perspective. In this age of Cloud Computing and IoTs, we bring unconventional advisory wisdom into the businesses of our clients in African Markets.

The industries served to date by GetAPlan.co.za include Motor Industry; Construction Industry; Agriculture; Transport & Logistics; Banking and Finance; Hospitality & Tourism; Manufacturing; Media and Publishing; Hospitality, Catering and Events; and Conglomerates, in over eight African countries.

The core services by GetAPlan.co.za include Planning Services, Strategy Services, Profiling Services, and Asset Management Services.

The Planning services includes Business Plans, Marketing Plans, and Investment Proposals. The Strategy services includes Market Intelligence, Market Research, Opportunity Assessments, Digital Strategy, and Investment Strategy. The Profiling services includes Business Profiling, Biographies and Company Profiles. The Asset Management services includes Intellectual Property management, Business Registration, and Consulting.

GetAPlan.co.za works in partnership with reputable accounting firms, that trust them to create solid, easy to use, business plans and strategy reports, containing relevant market intelligence.

GetAPlan.co.za has crafted Business Plans for diverse industries in South Africa, raising over R150 million; provided Market Strategy for a Gas Distribution in South Africa Secured R10 million; served in Intellectual Property Management for a Media Company, growing balance sheet of over R2.5 million; and provided Digital Strategy for a Publishing Company, saving expansion budget of over R1 million.

GetAPlan.co.za is a product and subsidiary of Cabanga Media Group (Pty) Ltd and associates in South Africa, Zambia, Zimbabwe, Botswana, Kenya, Nigeria, and Egypt.

GetAPlan.co.za gives a wholesome business starting up experience in South Africa, which fuses planning, compliance services, execution and operational growth services. After business planning, there is need for compliance, starting from Company Registration to licenses for the specific industries required. Some of the most important registrations, and licenses required include CIPC Company Registration, B-BBEE Certification, SARS Tax compliance, CSD Registration, Letter of Good Standing, UIF Registration, COIDA Registration, CIDB Registration, VAT Registration, NPC registration, Cooperative registration, just to name a few. 

Download their company profile below, and make an appointment with their Strategists to get a Business Plan and more.

Sources: Trade.gov, Cabanga Media Group

Attachments:
Download this file (GetAPlanCompanyProfile2021.pdf)GetAPlan.co.za | Company Profile[ ]718 kB

Cabanga Media Group publishes of thoughtful economic and business commentary magazines and online media, in several African markets, that include South Africa, Botswana, East Africa Community, Ethiopia, Egypt, Nigeria, and Zambia.