In 2010, the World Economic Forum's annual Global Competitiveness Report polled executives on the issues facing international businesses doing business in South Africa. The top five responses were inefficient bureaucracy, poorly educated work force, crime and theft, restrictive labor regulations, and corruption.
Type of government
Political risks: Ownership Operational Transfer
1. Risk assessment by Ducroire/Delcredere ONCC*
Examples of other factors:
Trade restrictions (tariffs, quotas, duties, taxes, licenses, local content, embargoes)
Labour restrictions (unions)
South Africa is governed as a parliamentary democracy (Bureau of African Affairs, 2010). This democratic country has numerous identifiable political pressure groups, but labour unions (also known as trade unions) in particular have been strong political pressure groups. These groups have instigated strikes in the past during which the entire country has come to an economic standstill, which makes it obvious that these labour unions are crucial political pressure groups in South Africa.
You want to employ the best candidate but you need to go via Goverenemt, IIssues around Black Economic Empowerment (BEE) have often presented political risk factors. This has usually come in the form of potential government intervention. Employment has sometimes been hampered by affirmative action quotas whereby management sometimes is prevented from selecting the most suitable persons for particular positions. The country‟s development consequently may have been restrained (Venter, 2005:40; Zaayman, 2003:38).
South Africa is classified as a constitutional democracy. Elections are held every 5 years where the people of South Africa are able to cast their vote for a registered party; this election process is overseen by the Independent Electoral Commission. Our President, who was put forward as the presidential candidate prior to the elections, is then elected by the winning party at a national assembly. The President is elected for a term of 5 years and can only serve 2 terms. (doing business in south Africa RSM)
Members of South Africa’s Food and Allied Workers Union staged a march today and asked the country’s Trade and Industry Ministry to impose tariffs on chicken imports from the European Union and Brazil.
About 400 people participated in the march in Pretoria, the capital, to hand in a memorandum about the fees, Katishi Masemola, the union’s general secretary, said by phone.
“The point we are making is for more, faster action to be taken,” Masemola said. “We are creating more of a sense of urgency. Our industry is threatened.” bloomberg
South Africa’s peaceful political transition was one of the