south africa

The Economy

South Africa's economy is the third largest in Africa and the continent's most industrialized, technologically advanced, and diversified. The country of over 60 million people is also one of only eight African countries with an upper-middle-income economy. In 2021, South Africa's Gross Domestic Product (GDP) was worth 418 billion U.S. dollars and ranked as the second-highest on the continent. The country also recorded an increase in GDP by 1.9% in the first quarter of 2022, marking the country's second consecutive quarter of growth.

Despite a 0.7% decline in the second quarter of 2022, South Africa’s economy quickly recovered in the third quarter, expanding by 1.6%. On the supply side of the economy, the agriculture, finance, transportation, and manufacturing industries were the main drivers of growth. The economy has since returned to pre-pandemic levels, with real GDP slightly higher than before the COVID-19 pandemic.

The Legal Business Structure

South Africa has an established and formally regulated corporate law regime. The Companies Act No. 71 of 2008 governs all South African businesses.

The Companies and Intellectual Property Commission is in charge of it. Investors can use a variety of legal business structures, depending on the nature of the operation and the associated tax and legal considerations

The Companies Act distinguishes between two types of businesses: non-profits and for-profits.