Easy of Doing Business in Thekwini (Durban) Easy of Doing Business in Cape TownSouth Africa is a country of a mixed economy. It has a relatively high gross domestic product than other countries in Africa. Despite having a mixed economy and high GDP, South Africa has a problem of poverty and unemployment. Business is a great way to be economically stable. It is such a profession that should be moved with a great strategy regarding various situations. South Africa needs such entrepreneurs for making the economy more strongly. So in this article, we are going to discuss doing business in South Africa‘s top 5 cities.
Doing business in Cape Town
Cape Town is the number one South African city when it came to the ease of doing business according to the latest World Bank research report on Doing Business in South Africa. The reasons for being the most efficient city in South Africa for doing business are the cost of products, transportation and infrastructure, and sustainability and the natural environment, safety and security. Cape Town is truly a city of employment with an unemployment rate 13 points lower than the national figure, and 10 points lower than the average metro. Cape Town is very popular with the local and international film industry. It has become a haven for all types of creative people like artists, writers, designers. Though there is a lot of competitions in creative sectors, you can do business well if you are that much dedicated to your work. The rate of salary in Cape Town is relatively lower than Johannesburg. This can be a bad side for expats who come for jobs in Cape Town. But still, it is very possible to live a well off life for both service holders and entrepreneurs because Cape Town has comparatively low living costs than other big cities in the world. South Africa’s high crime rate has a great impact on the country’s improper social conditions. Cape Town is not different from that. You need to be careful by taking reasonable precautions, following safety tips and investing in good security to be free from becoming a victim of crime in your business. Transportation system influences doing business in Cape Town as well. Apart from the MyCiTi bus system, there aren’t so many viable options in public transport of this city. Minibus taxis seem to be an important South African problem. Their precarious and often outright dangerous driving is a constant barrier to many of the city’s drivers. Though people often complain about the traffic, the city as a whole is relatively appropriate and the highway network is magnificent. It makes it a relatively quick and easy business to get from one place to another by car.
Doing Business in Johannesburg
Johannesburg is South Africa’s economic center, and jobs there generally offer higher salaries than one would find for the same position in Cape Town. Johannesburg is a hotbed of commercial opportunities. Social injustice and security risks remain here, but entrepreneurs who take a smart approach can be successful in establishing a business. The price of property in Johannesburg might seem expensive at first but the rate of salary is higher than in other cities of South Africa. Johannesburg provides a great shopping experience for its people. Aside from shopping malls, this city has a rich history to celebrate through a variety of museums and memorials. A large number of local and International businesses, corporations have their headquarters in Johannesburg. The stock exchange is the largest in Johannesburg among Africa. Mining industry of South Africa is centered in Johannesburg. So for doing business, Johannesburg is an ideal city. Though the city has some safety issues too. Crime occurs here commonly such as car break-ins, muggings, and home invasions etc. Car hijacking and theft are also known to happen here. Despite them, Johannesburg has a large private security industry. With fast response times, an efficient alarm system and range of modified services, hiring a private security firm is an effective way to prevent being a victim of crime in Johannesburg.
Doing Business in Durban
Durban is the third richest city in South Africa after Cape Town and Johannesburg. It is a city of ports and works as a center of industry, trade, and manufacturing. There is ample scope of doing business in Durban. By analyzing the data, it is found that Durban is ranked 2nd in dealing with construction permits among 9 locations in South Africa with a DTF score of 73.65. In the matter of getting electricity, it is ranked 2nd with DTF score 69.40. Durban is ranked 8th in registering properties among 9 top cities in South Africa with DTF score 54.58. So it’s pretty clear that Durban can be a good choice for being an entrepreneur.
Doing Business in Bloemfontein
Bloemfontein is regarded as one of the cities where it is easier to do business. At a recent report about doing business in South Africa 2018, it is found that Bloemfontein leads in registering property category. The city is the fastest in contract management. Here attorney fees are lowest in commercial litigation. Here contract enforcement takes just under 16 months. The transportation system, safety and security, and other factors also go with the favor of doing business in this city.
Doing business in East London
East London is one of the areas of South Africa that has been identified by the government for its Industrial Development Zone program which aims to provide platforms for business and investment. It is an attractive center for import-export business. It can be a good investment destination for its strategic location and is well placed with the rest of Africa and with the markets of America, Europe, and the Pacific Rim. East London is appropriate for doing business because of its low input costs and excellent infrastructure including an airport and a port. East London is connected with other parts of the country by rail and road which makes ease of doing business here.
Source: Doing Business.