Chamber of Commerce Country Factsheet Last update: 12.07.2018
Your advisors at the Chamber of Commerce
- Thomas Bertrand+352423939337
- Steven Koener+352423939379
South Africa is home to some of the world’s oldest human fossils, and during the modern era the region was settled by Khoisan and Bantu peoples. Dutch traders landed at the southern tip of modern day South Africa in 1652 and established a stopover point on the spice route between the Netherlands and the Far East, founding the city of Cape Town. After the British seized the Cape of Good Hope area in 1806, many of the Dutch settlers (Afrikaners, called "Boers" (farmers) by the British) trekked north to found their own republics, Transvaal and Orange Free State. The discovery of diamonds (1867) and gold (1886) spurred wealth and immigration and intensified the subjugation of the native inhabitants. The Afrikaners resisted British encroachments but were defeated in the Second South African War (1899-1902); however, the British and the Afrikaners, ruled together beginning in 1910 under the Union of South Africa, which became a republic in 1961 after a whites-only referendum. In 1948, the Afrikaner-dominated National Party was voted into power and instituted a policy of apartheid - the separate development of the races - which favored the white minority at the expense of the black majority. The African National Congress (ANC) led the opposition to apartheid and many top ANC leaders, such as Nelson MANDELA, spent decades in South Africa's prisons. Internal protests and insurgency, as well as boycotts by some Western nations and institutions, led to the regime's eventual willingness to negotiate a peaceful transition to majority rule.
The first multi-racial elections in 1994 following the end of apartheid ushered in majority rule under an ANC-led government. South Africa has since struggled to address apartheid-era imbalances in decent housing, education, and health care. Jacob ZUMA became president in 2009 and was reelected in 2014, but was forced to resign in February 2018 after numerous corruption scandals and gains by opposition parties in municipal elections in 2016. His successor, Cyril RAMAPHOSA, has pledged to crack down on corruption and shore up state-owned enterprises, and is the ANC’s likely candidate for May 2019 national elections.
Economic growth is set to strengthen in 2018-19, driven by increased business and consumer confidence. A favourable outlook in trading partners will benefit exports. Private consumption will expand, albeit at a slightly lower rate than in 2017 due to tax increases. Employment trends remain a concern.
Inflation is projected to remain in the target range, reflecting an assumed stable strong exchange rate, which lessens the effect of higher international oil prices and thus the upward pressure from the VAT hike. Monetary policy is projected to be moderately expansionary, which is appropriate to support growth. The government budget for 2018-19 remains tight, but tax reforms will create some fiscal room for much needed investment in higher education and social benefits. Once the fiscal situation improves, government debt reduction needs to be advanced. Network regulation reforms aimed to broaden competition can further support growth.
Source: OECD - Economic Forecast
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 23.11.1998 (Memorial 2000, A No. 87, p. 2045)
- Effective as of 01.01.2001 (Memorial 2000, A No. 141, p. 2045)
Air Services agreement
- Agreement from 17.2.1994 (Memorial 1995, A, p. 1646)
- Effective as of 06.12.1995 (Memorial 1995, A, p. 2566)
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact point in South Africa
Luxembourg is represented by the Ambassade Royale des Pays-Bas à Pretoria
Economic and Commercial Attaché (FIT)
Mr Marc Schiltz
Flanders Investment and Trade
Fredman Towers (8th floor)
13 Fredman Drive
Tel: (+27) 11 783 47 32
Country risk as defined by Office du Ducroire for South Africa
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Other Useful Links
- CIA World factbook on South Africa
- South African Chamber of Commerce
- Invest in South Africa
- Investment Climate Statement - South Africa 2015
- Présentation de l'Afrique du Sud
- World Bank Open Data - South Africa
- GDP evolution in South Africa
- Deloitte: Guide to Fiscal Information - Key Economies in Africa 2014/15
- Economic Freedom Index - South Africa
- Das ist Südafrika
- Flanders Investment & Trade (FIT)
The Chamber of Commerce and the country
- 06.05.2015 - 08.05.2015
- 24.06.2013 - 29.06.2013