SOUTH AFRICAN ECONOMIC NEWS 13.02.2015
Our company manufacturer of bricks-blocks machines Beysanmak is following the developments closely in South Africa.
South Africa’s economic freedom score is 62.6, making its economy the 72nd freest in the 2015 Index. Its score is essentially unchanged from last year, with a 0.1-point gain reflecting improvements in labor freedom, fiscal freedom, trade freedom, and freedom from corruption that are largely offset by declines in investment freedom, business freedom, and the management of government spending. South Africa is ranked 6th out of 46 countries in the Sub-Saharan Africa region, and its overall score is higher than the world and regional averages.
South Africa’s large domestic market and natural resource base make it a promising candidate for economic freedom–led growth. However, recent labor unrest and falling commodity prices have undermined growth and tarnished the economy’s investment reputation.
More committed structural and institutional reform is needed. Pervasive corruption jeopardizes the rule of law. Rigid labor market regulations and the inefficient regulatory framework perpetuate high unemployment and underemployment. Non-tariff barriers constrict gains from global trade. The regionally significant financial sector has been helped by deregulation and remains a model for further reforms.
With no minimum capital required, it takes five procedures and 19 days to launch a company. Completing licensing requirements still takes more than a month on average. Labor regulations are not applied effectively, and the labor market lacks flexibility. The government has eliminated price controls on all but a few items such as gasoline, coal, and paraffin.
South Africa’s average tariff rate is 4.2 percent. Government procurement favors domestic firms. The government cancelled bilateral investment treaties with Germany, Spain, and several other countries in 2013. The financial system has undergone modernization, and banking has been resilient and sound. Four big banks account for over 80 percent of banking-sector assets. The capital market is well developed.
Our company Beysanmak is worldwide partner for the building materials industry.