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.
Forklift training. 2018-07-19 12:00 SD11900050
Underwriting and Management of Insurance Portfolio for a Period of Three (3) Years 2018-08-13 11:00 8/2/224/2017-2018C
Supply 100 each concrete kerb 2018-07-19 14:00 GE11900132
Supply carbon asphalt 2018-07-19 14:00 GE11900131
Supply 60 meter steel round bar 2018-07-19 14:00 GE11900136
Supply mild steel angle iron 2018-07-19 14:00 GE11900135
Supply 60 meter flat bar 2018-07-19 14:00 GE11900137
Supply and delivery of Uniform for the Traffic Department 2018-07-27 12:00 SCM /05/2018-19
Supply 5 each galvanised Metal sheet 2018-07-19 14:00 GE11900138
Supply ductile iron saddle 2018-07-19 14:00 GE11900139
Supply and delivery of Printing Paper for the period ending 30 June 2021 2018-08-10 11:00 BV 658
Supply and delivery of Tissue Paper Products for the period ending 30 June 2021 2018-08-10 11:00 BV 657
Consultancy Service to prepare 2019 Maternal, Newborn and Child Health Status Report under the theme “Women and Children in Humanitarian/ Conflict Contexts and Internally Displaced Persons (IDPs) 2018-07-31 15:00 AUC/SAD/C/2
Rental and servicing of sani bins for all fire stations 2018-07-19 14:00 SL11900014
Supply: Cleaning items 2018-07-23 15:00 GB11900013
Supply and delivery of detergents and cleaning materials for the period ending 30 june 2021 2018-08-10 11:00 BV681
Supply plain ended ductile iron valve 2018-07-23 14:00 GE11900112
Supply Lubricants 2018-07-20 16:00 GC11900020
For Consultancy Service to prepare 2019 Common African Position on Population Report 2018-07-31 15:00 AUC/SAD/C/6
Supply, Deliver and Install Alarm Systems into Electrical Substations 2018-07-17 11:00 SCM 04/2018

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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