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.
Provision of existing 196m2 leased office accommodation for The Department of Culture Arts and Traditional Affairs at Naledi service point in Vryburg for a period of 36 months. 2019-01-17 11:00 PWR 133/18
Supply & delivery of plinths for minisub and ringmain unit 2018-11-29 10:00 DIE0014914
Supply & delivery of electrical equipment 2018-11-27 12:00 SCM04-2011-18
Supply & delivery of galvanized poles and pole caps 2018-11-29 10:00 DIC0025766 (READVERTISE)
Provision of existing 196m2 leased office accommodation for The Department of Culture Arts and traditional affairs at Kagisano Molopo service point in Ganyesa for a period of 36 months. 2019-01-17 11:00 PWR 124/18
Supply & delivery of blue jot – it down notebook – 75 with full colour branding. 2018-11-29 10:00 DCG0011888
Supply & delivery of seedling & trees 2018-11-27 12:00 SCM03-2011-18
Cleaning of Reservoirs and Towers 2019-01-22 10:30 JWOPS 015/17RT
Appoint a service provider for the construction of ten (10) timber wendy house units in various areas. 2018-11-27 14:00 1056812
Cleaning and Maintenance of Outfall Sewers. 2019-01-22 10:30 JW OPS 043/18
Printed Books 2018-11-27 14:00 PNQ2 PRINTED BOOKS
Construction of multipurpose community centre building - phase 2B white location, Knysna. 2019-01-23 12:00 T 31/2018/19
Supply and Delivery of One Automated Mineralogical Scanning Electron Microscope based mineral/phase analyser (QEMSCAN) including Training. 2019-01-24 10:00 ERIC0340
Consulting Services- Digital Archivist & Librarian within the Directorate of Information & Communication 2018-12-07 15:00 Re advert- AUC/DIC/IC/327
Supply of hygiene products and services. 2019-01-24 12:00 33/2018
Provision of basic sanitation services in informal settlements with The City of Johannesburg on an as and when required basis. 2019-01-25 10:30 JW 13855
The supply and delivery of water meters 2018-11-28 12:00 61954
Panel to provide travel management services. 2019-01-25 12:00 36/2018
Supply and installation of security parameter fencing at Matopie High Site, Franschhoek. 2018-11-28 11:00 FQ/SM: 75/19
Supply, delivery and installation of high security cage at miniature substation 2018-12-03 11:00 FQ/SM: 73/19

Pages

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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