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.
The provision of clinker removal and rope access at Camden Power Station for a period of 36 months 2019-07-29 10:00 MPGXC005631
Panel: Client Decor Services 2019-07-08 12:00 CTICC 038/2019 PANEL: CLIENT DÉCOR
Provision of collecting, stripping and assessment of medium voltage motors including on site white meta bearing repairs of selected Medium Voltage Motors at Arnot Power Station 2019-07-25 10:00 MPGXC 005619
Germiston Station Minor Building Works Upgrade 2019-07-08 11:00 RFQ 02-1911150/06/2019
The province of KwaZulu-Natal, Department of Transport, invites tenders of Vukuzakhe Contractors for the Betterment and Regravelling of L2602 Contract 1 in the Ulundi Municipality within the Zululand District. 2019-08-13 11:00 ZNT373/ C266/ 2111/ S/ 1/ 2018T
Renovational Services for the National Health Laboratory Service (NHLS) at Pietersburg Hospital Lab, Polokwane 2019-07-18 11:00 RFB021- 19- 20
Renovation Services for the National Health Laboratory Service (NHLS) at Bongani Provincial Hospital, Welkom 2019-07-17 11:00 RFB0018- 19- 20
General maintenance including roof replacement; 25 Voortrekker Road; Murraysburg. 2019-07-24 11:00 G003/ 19
Water and sanitation programme phase 3A at Zamangothando Secondary School, Khawuleza PS, Sishongani PS and Induduzo PS, Ulundi 2019-07-26 11:00 ZNTU 02480 W
Water and sanitation programme phase 3A at Maphovela High School, Ulundi 2019-07-26 11:00 ZNTU 03956 W
Phase 14 Storm Damage: Repairs and Renovations to Storm Damaged Schools Throughout The Province of KwaZulu Natal 2019-07-22 11:00 VARIOUS
The Construction of the Apli Cold Storage Facility, Depot and Packhouse 2019-07-15 12:00 CDC/ 327/ 19
NDPW:Rehabilitation and Construction of the New Office block at 85 Anderson Street,Johannesburg (Heritage) 2019-08-06 11:00 JHB.19/ 20
TKZN intends to appoint a marketing services agency to provide integrated marketing services aligned to the TKZN’S 2014-2020 strategy and annual performance plan for the period of twelve months 2019-07-19 12:00 TKZN NO: 03/ 2019
TKZN intends to appoint a suitable service provider to provide Public Relations and Communications support to the organization for the period of twelve months. 2019-07-19 12:00 TKZN NO: 01/ 2019
TKZN intends to appoint a suitable service provider to supply, install, develop, configure and maintain the SAP Business one application system including Microsoft SQL server database 2019-07-19 12:00 TKZN NO: 04/ 2019
CapeNature seeks the expertise of a suitable service provider for the supply, delivery and installation of Atmospheric Water Generators with a solar solution at the Anysberg Nature Reserve, CIDB and Local content conditions apply 2019-07-26 11:00 WCNCB 01/ 06/ 2019
Appointment of a service provider to manage Media Relations and Communication services on behalf of the Broad-Based Black Economic Empowerment Commission (‘the B-BBEE Commission’) for a period of 2 years. 2019-07-12 11:00 dti 06/ 19- 20
Appointment of a service provider to supply, install, configure and maintain a Telephone Management and Switchboard System for the Office of the Valuer-General on a lease basis for a period of 36 Months 2019-07-12 11:00 OVG (03) 2019/ 20
TKZN intends to appoint a Social Media Management Agency to provide social media services for a period of twelve months 2019-07-19 12:00 TKZN NO: 02/ 2019

Pages

2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

31 January 2019

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of Small Business Owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Without getting into the fundamentals of accounting there are two basic items that determine your... Read More

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