There are upcoming possibilities in southern Africa’s major industries including mining, energy, transport and ICT which have a strong potential for growth and regional expansion.
The drivers of these developments are mainly in mining, industrial activities such as smelting, pulp & paper, sugar mills and rapid urbanization. The energy sector is especially driven by partnerships including Sweden’s role in the Power Africa initiative.
South Africa provides access to almost 1 billion potential customers in sub-Saharan Africa, creating a hub for various regional headquarters in Johannesburg. The increasing middle-class market in South Africa and the access to growing markets in sub-Saharan Africa makes South Africa ideally placed in the region for market expansion. Six of the top 10 largest companies in Africa are headquartered in Johannesburg namely Imperial Holdings, Vodacom Group, Eskom, Bidvest Group, MTN Group and Sasol. More than 60 Swedish companies have chosen South Africa as a base for their southern African operations including Ericsson, SAAB, ABB, Volvo, Scania, AtlasCopco and Sandvik who have their regional headquarters in Johannesburg.
The range of companies form the basis for key areas of development including manufacturing (13%), transportation (10%), mining & construction (12%), utilities (energy, water and waste management) (4%). The National Development Plan (NDP) has outlined these key areas for economic growth in South Africa. This highlights the strong political will to increase the GDP growth to an annual growth of 5%.
South Africa serves as the main point of entry for several goods that are distributed into the rest of the Southern African Development Community (SADC). As a member of the SADC, South Africa benefits from the Economic Partnership Agreement (EPA) between the EU and 6 other SADC countries.
Trade between Sweden and South Africa is valued at over 1 billion USD a year, making it one of the largest trade partners in Africa. South Africa is the highest receiver of foreign direct investment in Southern Africa with 5,7 billion USD in 2014 and serves as hub for market capitalisation with the Johannesburg Stock Exchange (JSE) being the largest stock exchange in Africa.
Business Sweden has a long history of supporting the Swedish company's expansion in the region. The office also has special expertise and experience in energy, mining and transportation.
Contact us to find out how we can assist your company in expansion.