International Investors in South Africa

The opportunity to make significant investments in the South African market has been considered by more and more private investors in recent years. With international angels, as well as South African investors, the country has a lot of potential for investments that bring high returns. What were some of the key deals of the past month from which South Africa’s development will benefit?

Rail Pact with China

The agreement signed in August 2010 aims at promoting trade and investment in rail projects and finding new approaches for the consolidation of the transport sector, China being the largest high-speed rail network operator in the world. China is willing to share expertise with South Africa, as it has great specialists in developing and upgrading highland rail, networks and maintainance. Research institutions and private organizations with the technical and financial resources to implement specific projects will be identified and contacted. Another mutual benefit will be the exchange of professionals such as engineers in the field of intelligent transport fields.

Russian Uranium Supply

The agreement signed by Jacob Zuma and Dmitry Medvedev states that South African nuclear power stations will be supplied with uranium starting with 2011. South Africa has been long considered an important investment destination due to its natural resources. Besides uranium, Russia will also provide technological support, also considering the option of building its own plants. This deal represents the first important step in further consolidating and enhancing bilateral relations, as the Russian business delegation members also represented sectors such as engineering, energy, logistics, infrastructures or aerospace.

Some of the advantages, foreign investors are aware of when they decide to put their money into South African projects are the resource-rich region and the tax regime, in line with global tax systems, Entrepreneurs willing to start a new business there and looking for investors should, however, consider the option of first contacting investors in South Africa, to be able to benefit from permanent management assistance, besides business capital.