{"id":816246,"date":"2025-03-13T16:08:53","date_gmt":"2025-03-13T14:08:53","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=816246"},"modified":"2025-03-13T16:57:12","modified_gmt":"2025-03-13T14:57:12","slug":"international-giants-want-to-invest-more-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/816246\/international-giants-want-to-invest-more-in-south-africa\/","title":{"rendered":"International giants want to invest more in South Africa"},"content":{"rendered":"\n

German companies operating in South Africa are optimistic about their prospects in the country, with many looking to invest further in South Africa.<\/p>\n\n\n\n

Months after the latest national elections, German companies in South Africa and Southern Africa are optimistic about their business prospects for 2025, with 64% expecting their sales to increase.<\/p>\n\n\n\n

According to the survey findings from the German-Southern African Business Outlook 2025, 48% of companies in South Africa are also optimistic about their profit expectations for the year.<\/p>\n\n\n\n

KPMG Germany (KPMG) and the Southern African-German Chamber of Commerce and Industry (AHK Southern Africa) conducted the survey in November and December 2024.<\/p>\n\n\n\n

The survey analysed the member companies in the region, with many expected to pump money into South Africa over the next few years. <\/p>\n\n\n\n

44% of German companies plan to invest in South Africa in the next three years\u201410% of them with a volume of at least three million euros (about R60 million).<\/p>\n\n\n\n

Moreover, 77% of respondents believe that the outcome of the recent elections will positively impact the economic climate. That said, 65% expect only a moderate improvement.<\/p>\n\n\n\n

“Following the parliamentary elections in South Africa in May 2024, the new government of national unity was formed,” Andreas Glunz, Managing Partner International Business at KPMG Germany. <\/p>\n\n\n\n

“Local companies are cautiously optimistic that reforms could come from this government and that their businesses will grow in 2025.<\/p>\n\n\n\n

“In recent years, problems with energy and water supply and transport logistics as well as rising costs coupled with falling productivity have put a strain on the business activities of many companies.” <\/p>\n\n\n\n

“The new government now has the opportunity to create the conditions for growth through infrastructure programs and a sustained fight against corruption and crime.”<\/p>\n\n\n\n

46% of companies see the systematic fight against corruption and crime as the most important task of the government of national unity.<\/p>\n\n\n\n

39% see the expansion and modernization of infrastructure as a crucial field of action, while 28% see a stable energy supply as essential. <\/p>\n\n\n

\n
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Question: Please select your top 3 demands of the new South African government<\/figcaption><\/figure><\/div>\n\n\n

What companies want to see<\/h2>\n\n\n\n

Sales growth is the top priority for the companies surveyed in South Africa, with 61% wanting to expand their market share and 42% aiming to reduce their costs.<\/p>\n\n\n\n

“South Africa is an attractive location for the German economy. Many companies are focusing on the medium-term prospects and potential in the country \u2013 and these are huge,” said Simone Pohl, AHK Southern Africa CEO. <\/p>\n\n\n\n

“Many of our more than 500 member companies have been in the country for a long time and are correspondingly resilient and operating successfully.\u201d<\/p>\n\n\n\n

Moreover, 50% of companies see reliable political framework conditions as the most important influencing factor for their future business development in South Africa. <\/p>\n\n\n\n

47% also seek to reduce bureaucratic hurdles, while 35% are convinced that stricter anti-corruption measures would positively impact their own businesses.<\/p>\n\n\n\n

30% also wanted reliable energy and water supply, while 29% wanted an improved security environment. <\/p>\n\n\n\n

“The current reform efforts in South Africa are opening up new opportunities for economic growth,” said Peter van Binsbergen, President of AHK Southern Africa.<\/p>\n\n\n\n

“If the government continues to pursue its course consistently, the country can further consolidate its position as a leading business location in sub-Saharan Africa.”<\/p>\n\n\n\n

“German companies are ready to actively shape this change and make long-term investments.”<\/p>\n\n\n\n

44% of companies also said that access to other markets in sub-Saharan Africa is a major advantage for South Africa.<\/p>\n\n\n\n

“For many German companies, South Africa is the first port of call for tapping into other markets in sub-Saharan Africa,” said Glunz. <\/p>\n\n\n\n

“But overall, the German economy is still underrepresented on the African continent of opportunity despite the increasing global geopolitical challenges.” <\/p>\n\n\n\n

“The continent has a rapidly growing population, an increasing middle class, untapped markets and an abundance of labour, natural resources and solar energy.”<\/p>\n\n\n

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Question: Please select the top 3 priorities for the South African market over the next year<\/figcaption><\/figure><\/div>\n\n
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Question: Please select the top 3 factors that would support your business.<\/figcaption><\/figure><\/div>","protected":false},"excerpt":{"rendered":"

German companies are optimistic about South Africa’s prospects, with many looking to invest millions in the country. <\/p>\n","protected":false},"author":95,"featured_media":816278,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[21971,1458],"class_list":["post-816246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-ahk-southern-africa","tag-kpmg"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=816246"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816246\/revisions"}],"predecessor-version":[{"id":816825,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816246\/revisions\/816825"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/816278"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=816246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=816246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=816246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}