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Economic policies
South Africa is one of the most sophisticated and promising emerging markets in the world, offering a unique combination of highly developed first world economic infrastructure with a vibrant emerging market economy. It is also one of the most advanced and productive economies of Africa.

Since the political reforms in 1994, South Africa's economy has been undergoing structural transformation, with the implementation of macro-economic policies aimed at promoting domestic competitiveness, growth, employment and increasing the economy's outward orientation.

Key economic reforms have give rise to a high level of macro-economic stability. Taxes have been reduced, tariffs lowered, the fiscal deficit brought under control, and the exchange controls relaxed. Government expenditure has also been restructured towards social services that are contributing to a better quality of life for all South Africans

The South African Reserve Bank maintains its independence from government. The Bank's program of inflation targeting has had positive outcomes, the real interest rate has stabilized and the currency is able to fluctuate at competitive levels. The eliminations of the Bank's net open forward position (uncovered future foreign exchange liabilities) has also contributed to increased financial stability.

In 2005, the government began formulating a new strategy to boost the country's economic growth rate to 6% of GDP by 2014 and reduce unemployment. Implementation of the strategy involving large-scale investments in infrastructure, small business, skills development and interventions targeting specific areas of the economy - has since begun. The President also made it clear that foreign investments are welcome in South Africa.

Legal and business environment
South Africa has a world-class, progressive legal framework. Legislation pertaining to commerce, labour and maritime issues is particularly well developed, whiles laws relating to competition policy, copyright, patents, trademarks and disputes conform to international norms and conventions.

The financial systems are sophisticated and well regulated. South African banking regulations rank with the best in the world, while the sector has long been ranked among the top 10 globally. Foreign banks are well represented and electronic banking facilities are extensive.

The JSE Limited is the 18th largest exchange in the world by market capitalization. The JSE's rules are based on global best practice, while the JSE's automated trading, settlement, transfer and registration systems are the equal of any in the world.

Access to markets
South Africa is ideally positioned for easy access to the countries comprising the Southern African Development Community (SADC), the islands off Africa's East coast, and even the Gulf States and India.

Major shipping lanes pass along the South African coastline through its seven commercial ports, which form by far the largest, best equipped and most efficient network on the continent. The ports function as hubs for traffic emanating from and destined for Europe, Asia, the Americas, East and West coasts of Africa.

Not only is South Africa in itself an important emerging market, it is also a minimum requirement for accessing other sub-Saharan markets. The country borders with Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho, and its well-developed road and rail links provide the platform and infrastructure for ground transportation deep into sub-Saharan Africa.

Market access has been enhanced through free trade agreements with the European Union, the Southern African Development Community (SADC) and the implementation of the African Growth and Opportunity Act by the US.

Doing business in SA
A recent survey by The Economist Intelligence Unit ranked South Africa as highly cost effective (10th out of 31 countries surveyed). The exchange rate makes it one of the least expensive countries in which to do business - particularly with a first world infrastructure and high living standards.

The unit labour costs are significantly lower than those of other key emerging markets, including Mexico, Hungary, Malaysia and Singapore. In addition, recent years have seen a surge in the country's labour productivity.

South Africa's corporate tax rate - down to 29% for 2005/06 - compares favourably against a number of developing countries and the prospects of further reductions are good.

South Africa is amongst the top 30 countries in the world of ease of doing business, according to a 2005 World Bank report. The finding suggest that South Africa is making progress in creating an environment conducive to investment, which the government has identified as key to achieving a 6% growth rate.

The competition regime is based on international practice and is well-developed and regulated in The Competition Act of 1998 reformed the country's competition legislation, strengthening the powers of the competition authorities along the lines of the European Union, US and Canada models.

International business risk consultancy Control Risks say in their latest report that SA's low political risk rating place it on a par with countries such as Canada, France, Germany, the Netherlands and the US. Low political risk means that businesses can operate "with few problems". Political institutions are stable but there is some possibility of negative policy change.