There’s absolutely no doubt in anyone’s mind that South Africa is the economic hub of Africa, and this is the part of Africa, which is rapidly becoming a focal point on the main stage of the world.
However, while businesses are being created here all the time, is this an investment opportunity you should be thinking about?
The short answer is yes if you’re an investor of any kind, you need to be thinking about South Africa and where the city is going to go in the next few years because once it takes off, it’s going to be flying high.
Need some reasons why this is the case? This is precisely what we’re going to be talking about today.
The Potential in SA is Massive
South Africa is one of the most resource-rich spaces in the world right now. It’s home to resources like gold, coal, manganese, nickel, chromium, iron, platinum, uranium, and more. Gas and oil deposits are also huge here, and with movements happening all the time to make the most of these resources, now is the time to invest.
These levels of opportunity continue with the country being the leader of agro-processing and agricultural impact. Green technology companies are popping up everywhere, and in a time where global warming and climate change is an issue on everyone’s lips, SA has a very high chance of being a global pioneer in the industry.
With all this in mind, the business opportunities in South Africa are tremendous, both in terms of investment and as a trade destination. All these industries need financing, and incentives will need to be put into place. On an international level, you can expect big things to come out of SA.
Tourism Will Pop
“There’s no denying that Africa is one of the most beautiful countries in the world. The natural habitats and landscapes are beyond any other place on Earth, and the pull for tourists to come here is increasing year on year,” shares Emma Taylor, a journalist at Draft beyond and Last minute writing.
“With conservations projects taking off, a global eye on the animal populations on the world, and people becoming more interested in eco-friendly vacations, SA is an ideal location to offer opportunities through the tourism industry.”
Sure, there are a lot of areas that need to be addressed, such as SA’s reputation when it comes to things like crime, but with investment into the cities and a watchful eye over the next few decades, investing now could return the best payoffs.
The South Africa Property Opportunities
Of course, South Africa has a pretty rough political past, no one is denying that, but the important investment aspect to note here is that South Africa has been denied affordable and decent quality houses.
With South Africa’s long-term growth plan, good, affordable housing has been put high on the priorities list, which means there’s a ton of return of investment to be made in the property markets.
“The potential for growth in SA is outstanding, and any serious global or international property developer should not ignore what’s happening here. Looking at the stats, facts, and figures, the Western Cape of SA is already showing a growth rate of 13.9%, an incredibly steady rate we must add, with other similar areas growing around 15.6%.
All real estate developers have been given a 20% tax break on their projects, and an additional 20% tax break on rental opportunities on renovation projects. Due to this fact alone, it’s crazy to see that South Africa is actually outperforming many of the Western markets.
When you then couple this with the fact that there’s no tax to be paid on property purchases, you read that right; there’s no VAT or anything although sellers tend to be liable for fees, buying property in South Africa has never been more attractive.
There’s also no stamp duty and no inheritance tax, which makes buying and selling property in all a much more lucrative opportunity for investors.
Author: Ashley Halsey
Ashley Halsey is a professional investment and financial writer at Lucky assignments and Gum essays, who loves nothing more than seeking out new opportunities. Mother of two children, she enjoys traveling, yoga, and partaking in charity work.