Issue Date: 
Friday, May 16, 2014

Ease of doing business in South Africa

By Werner van Rooyen

www.how2tender.com

16 May 2014

Sometimes it feels that it is really impossible to start a business in South Africa. It also feels that it is very difficult to do business in South Africa. But how difficult is it really?

There are various indicators that show us how difficult it really is based on certain factors. One place where one can see how difficult it is to do business in South Africa is the survey that is done annually by the International Finance Corporation and the World Bank. In this survey, 189 economies are measured on 10 topics. This is shown in the table underneath. The full survey as well as all the rankings can be found at www.doingbusiness.org/rankings.

In the table underneath South Africa is compared to other Southern Africa (Namibia and Mozambique) countries, Brazil which is a BRICKS partner, as well as Singapore which is ranked number one and New Zealand which is ranked number three.

Doing Business RSA MOZ NAM BRA SING NZ
Ease of doing business 41 139 98 116 1 3
Starting a Business 64 95 132 123 3 1
Dealing with Construction Permits 26 77 31 130 3 12
Getting Electricity 150 171 72 14 6 45
Registering Property 99 152 178 107 28 2
Getting Credit 28 130 55 109 3 3
Protecting Investors 10 52 80 80 2 1
Paying Taxes 24 129 114 159 5 23
Trading Across Borders 106 131 141 124 1 21
Enforcing Contracts 80 145 69 121 12 18

It is clear from this survey that South Africa is not the worst place to do business in. That title belongs to Chad which is number 189 on the list! If you examine the list it is clear that the Africa Continent Countries or Economies are of the lowest ranked on the list where as South Africa are number 41 on the list.

Mauritius is the highest rank African Economy at number 20. Interesting enough is that an economy such as Rwanda is ranked above South Africa at number 32. South Africa is then third in Africa at number 41.

Interesting assumptions from this list can be:

  • It is fairly easy to deal with construction permits in South Africa, although it can take up to seven months to get your CIBD grading;
  • If you need electricity, you are going to struggle in South Africa;
  • Registering property in South Africa can be a challenge;
  • Getting credit is also not too difficult in South Africa;
  • We are good at protecting our investors;
  • And paying taxes are South Africans strength.

In all fairness South Africa is not such a difficult place to do business in. One must just have patience and eventually you will pull through in doing business in South Africa.

One way to do business in South Africa is to tender. Visit our website at www.how2tender.com to find out more about our Tender Workshops or purchase our Tender Manual: A practical guide on how to tender.

Until the next time - happy tendering.

Title Closing Date Tender No.
Tenders are invited to provide Lumion Essentials Training 2017-12-04 11:00 CSQ11171189
Supply: Gloves 2017-11-29 10:00 GA1180192A
Tenders are invited to provide Revit Advanced Training 2017-12-04 11:00 CSQ11171189
Tenders are invited to provide Revit Intermediate Training 2017-12-04 11:00 CSQ11171189
Supply 20 each x harness; weedeater 2017-11-28 10:00 GA1180193A
Tenders are invited to provide Revit Essentials Training 2017-12-04 11:00 CSQ11171189
Supply: Plants 2017-11-28 16:00 GC11800356
Bidders are invited to provide training for Intermediate Leadership Programme 2017-12-04 11:00 CSQ11171187
Bidders are invited to Repair Scrubber Machine for Fresh produce market Scope of Work 2017-12-04 11:00 CSQ11171187
Supply Klorman Cartridges for Water Purifying 2017-11-28 16:00 GC11800357
Manufacture, Supply and Commissioning of an Inkjet Printing System to Upgrade an Existing Wide Web Printing Press at the Government Printing Works. 2018-01-15 11:00 GPW- M 361
Appointment of a service provider to render hygiene services for the Department of Rural Development and Land Reform: Office of the Chief Registrar of Deeds, Deeds Registry Pretoria, Chief Surveyor General and Surveyor General for a period of 36 months 2017-12-15 11:00 DRDLR (CRD- 08) 2017/ 18
Supply and print ambulance return books x 600 units 2017-12-01 11:00 ZNQ 459/ 17/ 18
Supply and Deliver Bark Chips to City Parks Depot , Sacks Circle Drive Bellville South. 2017-11-28 16:00 GC11800358
Stationery items 2017-12-01 11:00 ZNQ 130 / 2017/ 2018
Appointment of a service provider to render Security Services in Klerksdorp Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 018/ 2017/ 18
Appointment of three service providers to supply and deliver fresh fruit as and when required over a period of twenty four months (24) . 2017-12-15 11:00 NRFNZG- 027- 2017/ 18
Supply carbolic soap 2017-11-28 16:00 GC11800360
Appointment of a service provider to render Security Services in Rustenburg Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 019/ 2017/ 18
Appointment of two service providers to supply and deliver fresh and processed vegetables as and when required over a period of one (1) year 2017-12-15 11:00 NRFNZG- 028- 2017/ 18

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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