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Catherine W GichukiDohaQatar’s trade with South Africa almost doubled to QR1.184 billion (5.4 billion rands) in 2021 from QR631.5 million (2.9 billion rands) in 2020, with high-quality human consumables dominating South African exports and chemicals and minerals forming the bulk of Qatari exports.Speaking to Qatar Tribune, the South African Ambassador to Qatar HE Ghulam Hoosein Asmal said, “South Africa is a land that many have called one of the most beautiful places on earth where one can experience the rhythmic pulse of Africa intertwined with the western influences of the past. A place where the soul of a country comes from the hearts and minds of its people, where hope and joy has been spawned by the pursuit of freedom and equality, where the rolling hills, towering mountains and fertile valleys give way to vibrant and dynamic cities, and where the wildest of experiences can be enjoyed by the most sophisticated of palates.”The country remains one of the preferred investment destinations in Africa and is also an important gateway for markets and other business opportunities throughout the continent. The economy boasts an extensive and modern infrastructure network, which is being expanded further as a large investment programme is rolled out by the public sector in collaboration with the private sector. Together with various other forms of industrial support from the South African government and other public sector institutions, this provides an attractive pull factor for investors. Ambassador Asmal opined that the anticipated recovery in global growth over the medium-term augurs well for South Africa’s very open economy, with significant positive ramifications for long-term investment prospects across a wide variety of sectors. The SA economy has become increasingly diversified over the years, thereby reducing its sectoral concentration risks, particularly in mining. From a sectoral perspective and the most developed and technologically advanced economy on the African continent with a GDP of ZAR 5.52 trillion economy (USD 335.4 billion*) it is the 33rd largest in the world and represents circa 14% of the African continent’s overall GDPThe private sector accounted for 71% of overall fixed investment expenditure, on average, over the past 3 years. Foreign direct investment (FDI) inflows have increased substantially since the onset of democracy, with FDI stock representing 36.3% of GDP in 2019, as compared to 6.6% in 1994. Exports of goods and services represented 27.8% of GDP in 2020, illustrating the importance of external markets for the economy at large and specific sectors. Mining has the highest export propensity (67%) of all sectors of the economy. Favourable weather conditions have supported robust output levels across the agriculture sector, contributing too much increased exports of several products, including citrus fruits, grapes, apples, & pears, as well as maize. Motor vehicles are the largest manufactured export product category, destined mainly for the Eurozone, the UK & the USA.African Continental Free Trade Area (AfCFTA)Ambassador Asmal was exuberant about the African Continental Free Trade Area (AfCFTA) that was established in 2018 and will be a “game changer in both Africa and the global economy “. It will have a combined consumer and business spending of $6.7 trillion by 2030 and $16.12 trillion by 2050, creating a unique opportunity for people and businesses.The AfCFTA aims to reduce tariffs among members and covers policy areas such as trade facilitation and services, as well as regulatory measures such as sanitary standards and technical barriers to trade.The Ambassador pointed out that The African Continental Free Trade Area opens numerous opportunities for the development of export markets, national industrial bases, and regional value chains.South Africa’s strategic position within the AfCFTA placed it in good stead to benefit from opportunities presented by AfCFTA. The access to quality infrastructure and connections to global supply networks are additional attractions. The African continent is blessed with abundant resource endowments, with several economies likely to play a critical role in the global transition to a greener future. The fast-progressing implementation of the AfCFTA agreement will, over time, open a multitude of new trade and investment opportunities across several sectors and enabling services. Through South Africa’s participation in AfCFTA, it has preferential access to African markets and a deep understanding of business conditions on the continent.South Africa is an attractive location for foreign investors requiring access to the rest of the African continent as they can leverage on South Africa’s well-developed industrial ecosystem and diversified economy, particularly its established manufacturing sector and value chains; The country’s world-class physical infrastructure and extensive transport and logistics network (which is strongly integrated with other southern African countries), including advanced ICT infrastructure; and - Other competitive advantages, including its supportive operating environment (favourable trade regime, sophisticated and sound financial markets, availability of key production inputs).Asked to give ten reasons that make South Africa an attractive investment destination, the Ambassador pointed out that firstly, South Africa has one of the most sophisticated and promising emerging markets with an affluent consumer base, a growing middle class and an Industrial base to drive long-term returns on investment.Secondly, the South African economy is the most industrialised and diversified economy on the – African Continent and is the principal manufacturing hub in Africa. Additionally, it is the leading services destination with the best banking sector and a vibrant IT Sector and it manufacturers state of the art mining equipment, assembles various brands of automobiles. Thirdly, South Africa is a location of choice for multinationals in Africa because it has a supportive ecosystem as a hub for innovation, technology and Fintech.Fourthly, the South African judicial system is mature, accessible and provides certainty with the rule of law being revered and the sound regulatory framework adheres to international standards.Fifthly, South Africa has concluded several trade agreements that supports export market growth prospects The best example is the African Continental Free Trade Agreement was founded in 2018 with trade commencing in 2021. It creates a single market for goods and services to deepen economic integration in Africa, 54 of the 55 African countries have signed the agreement AfCFTA and the combined GDP of its member is approximately US$ 3, 4 trillion and a population of about 1, 5 billion people. Sixthly, it is well known that South Africa has a large and diversified mineral resource endowment from gold to platinum, etc.It is the home to several listed mining companies and has world-renowned underground mining expertiseSeventhly, South Africa has a sophisticated banking system with major footprint across Africa. In fact, it is the Continent’s financial hub. It also boasts Africa’s largest stock exchange by market capitalisation.Eighthly, South Africa has a highly developed economic infrastructure with the largest networks of air- and seaports, as well as logistics in Africa. Ninthly, it has a young and willing labour force that has been blessed with world-class tertiary education system that produces a skilled, talented, and capable workforce. In fact, South Africa is the only African country to have 3 universities ranked in the top 500 universities of the world. Tenthly, South Africa has favourable cost of living, superb weather all year round, a diversified cultural, cuisine and sports offering.
