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A brief analysis of PESTEL in South Africa...

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I.

PESTLE ANALYSIS OF SOUTH AFRICA

1. Political Factor South Africa is a country that has a parliamentary republic, whose political situation is often affected by corruption, resulting in mismanagement, higher unemployment rate and gradual downturn of economic development (Business day, 2018). Despite that, the support from both the public and foreign investors is essentially one of the government’s objectives.

2. Economical Factor South Africa is ranked as 34th largest economy in the world with the GDP of 317 billion USD (Statistics times, 2018). The country income category is classified as Upper-Middle-Income with the GNI per Capita (USD) 5,488 (The World Bank, 2018). Moreover, Cape Town is ranked as the 2nd largest municipal economic city in South Africa. The progress of the economic growth in South Africa potentially indicates a successful business operation in the country.

3. Technological Factor South Africa has been progressed immensely in terms of mobile software, security software as well as electronic bank service with many subsidized tech companies, which contributes largely to the country GDP. Thus, making it as one technologically sophisticated country that attracts many foreign investments to invest and utilizes the local skills force to operate in the market (International Trade Administration, 2017).

4. Environmental Factor South Africa is facing some environmental challenges such as water, air, and land pollution as well as deforestation. However, the country is known as one of the world’s most popular tourist destination with the cape town being voted as the World Best City in 2016 with the tourist attraction growth rate goes up by 20% year over year (Cape Town, 2018).

5. Social Factor

South Africa is described as a rainbow nation with a multicultural diversity, which consists of 11 languages . South African people always aims for a better quality of education for their children, more employment opportunities, as well as a better public welfare. Thus, business opportunity in South Africa is largely open to both local and international investors as it can contribute largely to the improvement of those areas (The South African, 2017).

6. Legal Factor South African government is strongly open to the Foreign Direct Investment in all business sectors with few restrictions in form and extent of foreign investment. Also, according to the Employment Equity Act 1998, employees are provided with critical protection as to promote equality and fairness in workplace (SAICA, 2018).

Introduction:

References: Business day 2018, South African politic and the economy, Tiso Blackstar Group, viewed 02 October 2018, < https://www.businesslive.co.za/bd/economy/2018-05-23-south-africanpolitics-and-the-economy-where-do-we-stand-and-where-are-weheaded/> Cape Town 2018, Work and Business, City of Cape Town, viewed on 04 October 2018, < https://www.capetown.gov.za/> Statistic Times 2018, List of countries by projected GDP, Statistic Times, viewed 02 October 2018, < http://statisticstimes.com/economy/countries-by-projected-gdp.php> The International Trade Administration 2017, South Africa: Information Technology, International Trade Administration, https://www.export.gov/article?id=South-Africa-information-technology The South Africa 2017, These are the seven biggest business opportunities in South Africa right now, Blue Sky Publication, viewed on 02 October 2018, < https://www.thesouthafrican.com/these-are-the-seven-biggestbusiness-opportunities-in-sa-right-now/> The World Bank 2018, Ease of doing business in South Africa, The World Bank Group, viewed 03 October 2018, < http://www.doingbusiness.org/en/data/exploreeconomies/southafrica#DB_sb> Saica 2018, Legislation, Saica, viewed on 04 October 2018,...