Entering the South African economy as a foreign multinational can be a daunting task. Yet, there are many opportunities and benefits if your strategy is implemented correctly.
South Africa is considered the “business gateway to the continent”, because of our well-developed economy and a globally renowned financial sector.
However, government has adopted extensive and unique legislation and policies to facilitate changes in the racial construct of our economy. Government is determined to change the way money flows in the economy and has set on an aggressive path to do an extreme makeover of its fundamental drivers.
The Codes of Good Practice for Broad-Based Black Economic Empowerment were more than a decade in the making (and extensively revised in both 2013 and 2019). It is not a new idea and it most certainly is not going to disappear in the foreseeable future – at least not until core objectives have been achieved.
There are many dimensions that may influence the business feasibility of operating in South Africa. It is important to be familiar with the challenges and opportunities so that interested multinationals can understand and manage the risks more effectively.
If the best option is to acquire a local company that already has an established client base, management team and organisational structure, Gestalt can assist its multinational clients to find the right local business to acquire; and the strategically-correct black-owned partner or business partner to facilitate the process of BEE compliance in the new local business.