South Africa: A Human Mosaic
South Africa is a country where the European culture intersects with traditions, where global tendencies are shoulder by shoulder with ancient rules and where south intermingles with north and east intermingles with west.
South Africa is the home of around 45 million people from different races and ethnic origin and in additions to English and Afrikaans; there are 11 official languages together with the local languages of Xhosa, Sotho, Vena, Tsonga, Pedi, Shangan and Ndebele. The similarity of these local languages is only like German and Spanish.
This language diversity is the first hint of rich cultural spectrum for the tourists and it is the most important indicator that South Africa deserves to be named as a matchless country. South Africa is a country where the European culture intersects with traditions, where global tendencies are shoulder by shoulder with ancient rules and where south intermingles with north and east intermingles with west.
SOCIETY AND CULTURE
You will immediately feel the panicking sense which still echoes in the Sterkfontein Caves that are only 20 minutes away from the crazy crowd of modern metropolis Johannesburg. Sterkfontein is a World Preservation Area which holds the fossils of the periods when human kind first started to walk.
No visitor may wish to leave the country without seeing the arts of the first men of San which they embroidered limitlessly on rocks. These caves are accepted as the first houses of the San men and they are currently kept under preservation. To name each of these caves in South Africa as a house of treasure will not be inappropriate. Some of the caves hold the marks of the fact that they were used as the house of Stone age men and some still holds the stalactites and dickites of geological periods.
South Africa is a country where the European culture intersects with traditions, where global tendencies are shoulder by shoulder with ancient rules and where south intermingles with north and east intermingles with west.
OVERVIEW
SURFACE AREA: 1,219,912 km2.
ETHNIC DISTRIBUTION: Black 76%, white 13%, hybrid 7%, local 4% and other
RELIGIOUS DISTRIBUTION: 68% Christian, 2% Muslim, 2% Hindu
LANGUAGES: There are 11 official languages including English as business language: English, Xhosa, Sotho, Venda, Tsonga, Pedi, Shangan, Tswana, Ndebele, Zulu and Afrikaans
EDUCATION AND LITERACY: Primary education is compulsory and literacy ratio is 86%.
LABOUR FORCE: Total 17 million. 30% of them work in the agricultural sector, 25% in industry and 45% in the service sector.
UNEMPLOYMENT RATIO: 37 % (one of every 3 adults is unemployed).
AVERAGE LIFE EXPECTANCY: 50 years.
CURRENCY: South African Rand (R1=100 Cents)
WORKING PERMISSION FOR FOREIGN STUDENTS: Foreign students can work up to 20 hours in South Africa.
REGIME: Democracy
ADMINISTRATION: Federal State (9 States)
HEAD OF STATE: Jacob ZUMA
ADMINISTRATIVE CAPITAL: Pretoria
PARLIAMENT: Cape Town
BUSINESS CAPITAL: Johannesburg
POPULATION: 44,8 million
CLIMATE: Summer (October-March): 15 0C – 35 0C Winter (April-September): 0C – 20C
TIME ZONE: SAST (GMT+2)
GDP: 2008
TOTAL: USD 276.764 million
PER CAPITA: USD 5.637
REAL GROWTH OF GDP: 3.7% (2008)
ANNUAL INFLATION AVERAGE OF 2008 (CPIX): Around 11,5%
MAIN EXPORT: Minerals and mineral products, precious metals and metal products, chemical and food products, automotive and parts
MAIN BUSINESS PARTNERS: Germany, USA, China, Japan, England.
IMPORTANT CITIES:
• Johannesburg
• Pretoria
• Cape Town
• Port Elizabeth
• East London
• Durban
• Bloemfontein
IMPORTANT PORTS:
• Cape Town
• Saldanha Bay
• Port Elizabeth
• East London
• Durban
• Richards Bay
South Africa covers 18% of the GDP of the African continent, 50% of energy, 45% of mine, 40% of industrial production and 50% of the purchase power. In addition, the export to the other countries of Africa is around USD 6,4 billion while import is around USD 1 billion.
GLOBAL VIEW TO SOUTH AFRICA
South Africa is one of the most developed and promising markets and provides positive contribution to the world economy based on its growing market economy. It is one of the 26 industrialized countries of the world and accepted as a gateway to the African continent. The country covers around 25% of the GDP of Africa and contains the biggest economy of Africa.
According to World Bank, South Africa has been ranked as 34th among 183 countries of the world with regard to ease of business.
It holds 80% of the global manganese reserves, 72% of chromium, 88% of the platinum group metals, 40% of gold and 27% of vanadium.
Financial Times data indicates that South Africa is a leader in Africa with respect to regional investment:
South Africa is the number one country in Africa for investments in R&D, environmental technology, ICT and Electronics, financial services, creative industries, transportation vehicles and life sciences.
The country is the leader in the sectors of environmental technologies and worldwide information communication technologies (ICT). South Africa is the biggest financial services centre for the region and the owner of the biggest transportation equipment of Africa. Its science life centre and creative industry centre are the biggest in the region.
BILATERAL COMMERCIAL RELATIONS BETWEEN SOUTH AFRICA AND TURKEY
Turkey is one of the biggest trade and investment partners of South Africa in the Middle and Eastern Europe. Bilateral trade volume between South Africa and Turkey has increased by 39% and reached to USD 669 million for the January-June period of 2011 which was around USD 482 million for the same period of 2010.
Some of the export items of South Africa to Turkey are as follows:
Gold, mineral fuels, mineral oils, stainless steel flat products, organic chemicals, iron alloys, pig iron and manganese iron; steam turbines and other steam turbines, parts and accessories for tractors, boilers producing steam or other steam, motorized car to carry ten or more people, electrical machinery and equipment.
Some of the import items of South Africa from Turkey are as follows:
Spare parts and accessories for tractors; steel and iron rods, carpets and other floor coatings of weaving items, automobiles and other motorized vehicles designed for passenger transfer; tractors; washing machines; rubber new pneumatic tyres; impregnated and coated clothes, textile products; organic surface active items, natural stones, volatile oils, piston motors, furniture, electric machine; iron and steel wire robes, cables, transmission shafts, processed special cloths.
There are more than 50 registered Turkish companies and 6 manufacturers with a value of USD 60 million in the sectors of textile, coal mines, electrical home appliances, general foreign trade, tourism, food, construction and service.
BILATERAL AGREEMENTS BETWEEN TURKEY AND SOUTH AFRICA
- Agreement on the Development and Protection of Investments
- Tourism Cooperation Agreement
- Agreement on Trade and Economic Cooperation
- Tax deductions and exemptions under GTS
INVESTMENT IN SOUTH AFRICA
WHY SOUTH AFRICA
- Stabile political environment and correct macroeconomic policies
- A dynamic market of 44,8 million population with growth potential
- Gateway to Africa
- Proximity to the markets of Africa, Latin America and Indian Ocean and links of sea, land, railway and airline.
- Rich natural resources and raw material
- Developed infrastructure, advance finance and banking
- Modern transportation and communication
- Matchless tourism and developed agricultural sector
- %100 foreign capital permission
- Free transfer of profits
- Cheap investment environment: the 4th cheapest power generator of the world, worker fees as less as monthly USD 40, USD 7/m2 shop rents in the centre and on the avenue, USD 8/m2 office rents, USD 2,5/m2 factory rents.
- Attractive investment incentives: Incentives are provided to prepare local industry for international competition, to increase fixed industry investments, to create employment, to support black entrepreneurship, to reduce investment costs of SMEs.
SUPPORTED SECTORS
- Ready wear, textile and shoes
- Metal, mineral and mining
- Processed food
- Tourism
- Automotive
- Air, Rail and Sea Transportation
- Hand crafts
- Chemical and Biotechnology
- Information and Communication Technology
INVESTMENT POSSIBILITIES
AGRICULTURAL PROCESSING
Fishery and aquaculture, fruit and vegetable processing facilities, fruit juices, meat processing, organic food, candy, local teas and natural fibre (organic cotton, linen and mohair).
AUTOMOTIVE AND COMPONENTS
Motor parts/components, spare parts, electronic gearbox parts, catalytic convector, aluminium forging and casting, diesel filters and leather products
CHEMICALS AND PLASTIC PRODUCTION
Production: titanium dioxide pigment, fluoro chemicals, polypropylene conversion, packaging, medical items, reactive and vaccines.
OUTSOURCING, WORK PROCESS AND INFORMATION TECHNOLOGY EFFECTIVE SERVICES
Call Centres, office processing and shared corporate services, corporate solutions, fleet management, information management, asset management solutions
Legal External Sources
Electrotechnics
Software Applications, mobile applications, smart measurement, software, radio frequency definition, process control, measurement and instrumentation, security and monitoring solutions and financial software
CLOTHING, TEXTILE, LEATHER AND SHOES
Industrial Textile Production using polyester
Natural fibre textile production like linen
Wool and mohair production – thread, knitwear and fabric
METAL PRODUCTION
- Metal production, pipe, tube and cast products, steel rope conversion, cable and jewellery
- Production and mining, agriculture and construction equipment assembly
- Pipe lines production
- Machine tools (automatic, packaging, mining and space industry)
- Electric engines
- Engineering services, construction services
- Port, construction and equipment
- Ship and petrol platform construction and maintenance
- Railway Production equipment, bridge, signal lines on railways and stations.
TOURISM
Developing infrastructures like hotel and self service holiday villages, adventure, eco-sports-conference and culture tourism, games, developing infrastructures like entertainment facilities, world standard gulfing courses, port and coast, developing infrastructures like cross border protection areas and transportation.
AVIATION
Aviation services including maintenance, repair and revision (MRO)
- Rotating and fixed wing components
- Aviation training services
- Aviation electronics and special production including health use monitoring systems
- airplane structural components, composite and metal plate (aluminium and titanium)
- Satellite connection services (tracking, control and application development)
- Advanced design expertise
- unmanned aerial vehicles (uav)
ESTABLISHING COMPANIES AND TAX SYSTEM
It is possible to quickly establish a company in South Africa through a transparent bureaucracy without any capital limit and obligation for South African shareholder with 100% foreign capital.
INCOME TAX (CORPORATE)
- Corporate tax 0%
- For small businesses RO – R150 000 (USD 25 000) 15%
- 30% for R150 001 and more
- 35% for branches of foreign capital
- INCOME TAX (individuals) 18%-40%
- VAT: 14%
- VAT is zero for export and for some food products and goods
Taxation of Capital Incomes
- Individuals: 10%
- Companies: 15%
Other taxes and fees
- Skill Development Fee: 1% by employer over the salary of employee
- Unemployment Insurance Contribution: 1% by employer, 1% by employee over the salary of employee
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