We hope the article on the PESTEL analysis of South Africa has been useful. It is officially known as the Federal Republic of Nigeria. A strong business relationship with vendors comes with lots of benefits, including getting new customers. South Africa exports gold, diamonds, platinum, cars, metals and minerals, machinery and equipment to a number of countries, notably China, the UK, the United States, Germany, India, and Saudi Arabia. As of June 2018, the GDP stands at around 371 billion He is a lecturer in Management and Marketing. The next element to address in the PESTEL analysis of South Africa is the countrys economic environment. In this SWOT analysis, you'll learn about South Africa's greatest strengths, weaknesses, opportunities, and threats affecting the area. Political Factor South Africa is a country that has a parliamentary republic, whose political situation is often affected corruption, resulting in mismanagement, higher unemployment rate and gradual downturn of economic development (Business day, 2018). PEST analysis is a powerful and widely used tool for understanding strategic risk. Individual income tax starts at 18% and goes up to 45% depending on the amount an individual earns. Social mobility and economic growth are often halted by poor and inadequate infrastructure. The next element to address in the PESTEL analysis of South Africa is the countrys, economic environment. (30) 2. Political environment in Nigeria Nigeria is a federal republic. South Africa is one of the most popular tourism destinations in the world. However, there are some restrictions on foreign shareholders in some sectors e.g. South Africa remains a divided society with growing tensions between immigrants from other parts of Africa and the local communities. The GDP stands at around 282 billion USD. Copyright 2017 - 2025. This article examines the external environment in which Starbucks operates by using the PESTLE methodology. The South African political environment is often clouded by corruption, mismanagement, political intolerance, popular protests, and violence. Report Code: GDER0017. South Africa PESTEL Analysis - Comprehensive Country Outlook Market Research Reports Business & Finance Business Survey South Africa PESTEL Analysis - Comprehensive Country Outlook August 2022 | 35 pages | ID: S1F4431422C2EN BAC Reports US$ 300.00 Email Delivery - PDF (on default), Hard Copy Mail Delivery (+US$ 190.00) Download PDF Leaflet 02, 2016 15 likes 35,227 views Download Now Download to read offline Education In depth country analysis which helps to understand external macro environment to start up new business abroad. The neighbouring countries of South Africa are Botswana, Mozambique, Swaziland, Lesotho, Namibia, and Zimbabwe. BRICKS stand for Brazil, Russia, India, China, and South Africa. Sign up to receive regular alerts for our latest analysis and reports. 03925319. 3M SWOT Analysis: Operations Too Much Diversified? All orders are processed in US Dollars only. The Employment Equity Act 1998 (EEA) aims to achieve equality in the workplace by promoting equal opportunity and fair treatment in employment (Kleitman, 2020). This preview shows page 1 - 2 out of 3 pages. Overall, the TOP 40 index exhibited a rising over past year. They are in charge for creating the laws of and taking care of bills PESTLE analysis Political Environment South Africa is a multiparty parliamentary democracy in which constitutional power is shared between the president and the Parliament. PESTLE analysis is also referred to as PESTEL analysis. Commercial activity, like the addition of Uber and AirBnB, shows South Africa is open to outside business developments. Cars and vehicles have become an essential part of our lives nowadays. Up until 1994 the country was ruled by an, apartheid government (BBC, 2018). Nigeria is a West African country. However, there are some big challenges South Africa faces today. Business is considered an economic system in which goods and services are exchanged for money on the basis of their perceived worth. Because of their strong relation, this affects South Africas value in business as Chinas investment in South Africa fell by 87% in 2015. The automotive or automobile industry comprises vehicles, cars, bikes, and public transport. Political factors: corrupt politicians Economical factors: rand (currency) is in limbo Social factors: high entrepreneurship spirit Technological factors: low budgets Legal factors: laws and VAT Despite being a bit rusty or unprofessional in some encounters, Apple products has come up with some ground breaking technological breakthroughs which are worth appreciating. Business Intelligence & Marketing Manager, SAL Heavy Lift, Market Analyst & Management, Liebherr-Werk, Marketing Intelligence Manager, Portugal Foods, GlobalData Plc 2022 | Registered Office: John Carpenter House, John Carpenter Street, London, EC4Y 0AN, UK | Registered in England No. The United Arab Emirates, often abbreviated to just the UAE, is an affluent Middle Eastern country located on the Arab Peninsula . This methodology consists of six external environmental drivers and within each, the key drivers or the external trends are discussed. Being mixed up in questionable politics puts a damper on those attempting to build a business and those on the fence about investing in South African businesses. Critically analyse the key opportunities and threats facing South African banks. PESTLE Updated for 2022 Since 2020, the standard macro environmental factors surrounding every business have shifted. To which specific one of the twelve questions would this, In 2014, South Africa watched the failure of one of the darlings of the Johannesburg Stock Exchange namely African Bank Investments Limited (ABIL). Course Hero is not sponsored or endorsed by any college or university. Economic environment in South Africa The next element to address in the PESTEL analysis of South Africa is the country's economic environment. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. Amazon, IBM, Microsoft, Facebook, LinkedIn, Intel, Dell, Novell, and Apple are some of the companies that can be considered in this regard. They serve us not only in terms of mode of transportation. Tesla's case involves the remote or macro-environment of the automotive industry, the energy generation industry, and the energy storage industry. The PESTEL analysis model supports strategic management by identifying the external factors that present opportunities or threats, based on the remote or macro-environment of the fast-food business, pertaining to the political, economic, sociocultural, technological, legal, and ecological factors (the PESTLE factors). You can also avail the option of purchasing stand-alone sections of the report or request for a country specific report. Retailer is the person who carries out the function of processing many small orders, rather than one big order like in wholesale, governments, and corporations. PESTEL Analysis is a strategic management tool that Shoprite Holdings management can use to make better decisions. Despite the negative associations linked to the region, South Africa has many strengths to offer and opportunities to take advantage of. How Can Startups Build Strong Vendor Relationships? Overall, the TOP 40 index exhibited a rising over past year. 1 of 14 Pestel analysis of south africa May. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this. Similarly, there are some special rates for certain industries e.g. Having used several other market research companies, I find that GlobalData manages to provide that difficult-to-get market data that others cant, as well as very diverse and complete consumer surveys. South Africa is one of the most powerful countries in Africa and plays a considerable role in the global economy and politics. As of September 1, 2022, the TOP 40 index stood at 59,518.7, compared to 60,612.6 on September 1, 2021. No matter your industry focus, you can keep your finger on the pulse with our timely updates. Contents Foreword Africa and South Africa 2 Overview of the African economic. The depleted rand currency and unemployment in South Africa being 25% affects the buying power of the people. We use cookies to give you the best online experience. The South African currency, Rand, is at an all time low. Oct 19, 2022-Middle East and Africa (South Africa, UAE and Saudi Arabia etc.) Published: September 16, 2022 Shoprite Holdings operates in a dynamic environment where it is influenced by - consumer spending behavior, increasing environmental activism among consumers, technological changes, regulatory framework . For example, unemployment is high and the public health system is ailing. The retail industry operates at the bottom of the supply chain management system of distribution, where the retailer completes the selling process. The Parliament includes two parts, the National Assembly and the National Council of Provinces. However, the country faces some environmental challenges such as water pollution, air pollution, land degradation, solid waste pollution, and deforestation. By: M Rahman | Tags: Global Business Issues. In other words, retailer plays a key . The PESTEL/PESTLE Analysis is a strategic management tool that determines the effects of the industry's remote or macro-environment on the company. It's the world's largest industry in terms of revenue and profit. The president appoints a Deputy President and Ministers to, form the Cabinet to administer the state affairs. Application of the PESTLE . PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. To achieve the 2025 Africa vision of water security for all, $64 billion yearly investment is required. Try to edit your document, like adding checkmark, erasing, and other tools in the top toolbar. Click the Get Form button on this page. PESTEL analysis of South Africa. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. This doesnt look promising to new startups. Zimbabwe. Similarly, Bloemfontein is the judicial capital of the country. Introduction Pestle analysis of automobile industry. As of June 2018, the GDP stands at around 371 billion, Australia Moreton Education Group Pty Ltd. A PESTEL analysis is a strategic framework commonly used to evaluate the business environment in which a firm operates. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Consequently, there are great opportunities for online retailers. Many labor laws are similar to the United Kingdoms labor laws, particularly when exporting to South Africa. South Africa is the 34 th largest economy in the world in terms of nominal GDP (Statistics times, 2018). Four major regions in South Africa that generated around 34.5% of the country's GDP were home to 31% of the country's population in 2021. Our Dyson SWOT analysis enables us to see what internal and external factors impact the, Copyright 2020 Weberience LLC. Currency Conversion is for Indicative purpose only. FIVE FORCES and PESTLE ANALYSIS: A PESTLE Analysis of The UAE Jun 10, 2016A PESTLE Analysis of The UAE. This detailed PESTEL analysis of South Africa aims to address some of the political, economic, social, technological, environmental, and legal factors that affect South Africa today. You may also like reading PESTEL analysis of the UK and PESTEL analysis of Canada. Location is good, but the weakened economy holds businesses within South Africa at a standstill. This detailed PESTEL analysis of South Africa aims to address some of the political, economic, social, technological, environmental, and legal factors that affect South Africa today. The company has been changing the lives of people ever since they have started their journey. South Africa is one of the most powerful countries in Africa and plays a considerable role in the global economy and politics. In the PESTLE Analysis of Apple, we found several negative and positive issues. There are 11 official languages in the country and Christianity, Islam, and indigenous beliefs are the major religions. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers. Right now, the currency is subjected by the market forces. Although many retail firms from around the world have established a presence in the East African Community (EAC), not all internalization attempts have been successful. Political environment in South Africa Unsurprisingly, the readers of Telegraph (a British newspaper) rated Cape Town the World Best City in 2016. PESTEL analysis factors are: Political, economic, sociocultural, technological, environmental and legal factors provide a framework to analyses and categories environmental influences This detailed PESTEL analysis of Nigeria aims to address some of the macro factors that have significant impacts on Nigeria. South Africa is improving conditions for budding businesses. If you're in the Commodities industry in South Africa, our research will help you to make informed, intelligent decisions; to recognise and profit from . mining, defence, insurance, broadcasting, telecommunications, and banking. A number of international tech and social networking companies already operate in South Africa often through subsidiaries. Economy | November 1st 2022 Africa chart of the week: mobile penetration Mobile penetration rates in Africa will continue to rise in 2023-27, with 3G remaining the dominant form of connection. We also use your market data in our Strategic Business Process to support our business decisions. It is worth mentioning that South African companies sell a lot of ICT products to growing African markets. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers., COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.. Jun 10, 2016 by Thomas Bush. 1. It identifies the . Other relevant articles for you are: If you liked any of these articles, please feel free to share with others by clicking on the icons provided. https://www.bbc.co.uk/news/world-africa-14094760. http://emergingmarkets.blog.franklintempleton.com/2017/03/16/south-africa-key-issues-and-challenges/, https://www.statista.com/statistics/1072248/life-expectancy-south-africa-historical/, http://taxsummaries.pwc.com/ID/South-Africa-Corporate-Taxes-on-corporate-income, http://statisticstimes.com/economy/countries-by-projected-gdp.php, https://www.thesouthafrican.com/these-are-the-seven-biggest-business-opportunities-in-sa-right-now/, https://www.export.gov/article?id=South-Africa-information-technology, https://www.worldometers.info/world-population/south-africa-population/, Effects of government intervention in markets. Indeed, according to many sources, Cape Town is regularly voted as one of the top holiday destinations in the world for families, couples and solo travellers. At the G20, it was found South Africa is low-risk for investors looking to breakthrough. Similarly, Bloemfontein is the judicial capital of the country. Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. PESTEL Analysis, SWOT Analysis and Risk Analysis of South Africa South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa, with over 1,739 miles of coastline that stretches along the South Atlantic and Indian oceans. I. PESTLE ANALYSIS OF SOUTH AFRICA 1. Legal environment is the last element to discuss in the PESTEL analysis of South Africa. Online shopping is on the rise in South Africa. Financial intermediation, real estate and business activities contributed 24.4% to the gross value added (GVA) in 2021, followed by mining, manufacturing and utilities (23%), wholesale, retail and hotels activities (13.2%). But with every election, there are people who want the corrupt to stay in power. The Parliament includes two parts, the National Assembly and the National Council of Provinces. Understand the political system in South Africa through analysis of key figures in the country and governance indicators. Grishma Rane Follow Working at Axis Bank Advertisement Recommended Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. PESTLE analysis involves examining any company, event or any factor in terms of 6 factors which include Political, Economic, Social, Technological, Legal and Environmental factors. Along with providing the countrys snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business. South Africa is in the midst of local elections. Introduction The PESTEL analysis of a business organization is pretty significant to understand its prospects. mining and long-term insurance. Exhibit 1: South Africas performance in terms of its country risk analysis in comparison to Middle East and Africa and the World, Exhibit 2: Performance overview (score: 1-100), Exhibit 3: Broad categories and weights behind the index, Exhibit 5: Key sectors contribution to the economy (2016-2023f), Exhibit 6: FDI inflows to South Africa, FDI outflows from South Africa, and FDI inward stock, FDI outward stock (2017-21), Exhibit 7: Value and number of greenfield FDI projects in South Africa and value and number of net cross border M&As purchase in South Africa (2017-21), Exhibit 8: Key infrastructure indicators (2020), Exhibit 9: Real GDP and household consumption growth rate (2017-24f), Exhibit 10: Real GDP growth rate comparison (2021), Exhibit 11: Export, import and trade balance (2017-24f), Exhibit 12: Current account balance (2017-24f), Exhibit 13: Top three commodity exports, % of total exports (2017-21), Exhibit 14: Natural pearls and precious stones, % of total exports (2021), Exhibit 15: Interest rates (September 2017 September 2022), Exhibit 17: General government deficit (2017-24f), Exhibit 18: General government debt (2017-24f), Exhibit 20: Average annual wages (2017-24f), Exhibit 22: Rural/urban share of total population (1995, 2005, 2015, 2025f), Exhibit 23: Age-group share of total population (1995, 2005, 2015, 2025f), Exhibit 24: Gender split (1995, 2005, 2015, 2025f), Exhibit 25: Internet users as a percentage of total population, mobile penetration rate and broadband penetration rate (2021), Exhibit 26: Number of patents granted per million population (2021), Exhibit 27: High-technology exports, % of manufactured exports (2020), Exhibit 28: Doing business in South Africa (2020), Exhibit 29: Corruption perceptions index (rankings) (2021), Can be shared by unlimited users within one corporate location e.g. Personal and transaction information are kept safe from unauthorised use. Businesses started within South Africa follow the Value Added Tax (VAT). Archbishop Desmond Tutu first coined the term to describe South Africas multicultural diversity. How to Edit Your Pestle Analysis South Africa Online Lightning Fast. This shows the impact of global lockdown on the countrys economy in 2020. It is a mnemonic including factors like political, economic, social, technological, legal and environmental. This could stifle the rising interest in entrepreneurship. PESTEL stands for - Political, Social, Economic, Technological, Environmental and Legal factors that impact the macro environment of the organization that it operates in. People in general in the country desire for better education for their children, rewarding employment opportunities and faster economic growth that offer great opportunities for both local and international organisations. https://content.next.westlaw.com/Document/I2ef128301ed511e38578f7ccc38dcbee/View/FullText.html? This is not helping the 27% unemployment rate at all. Some of the top imports of South Africa are machinery and equipment, chemicals, petroleum, scientific instruments, and food materials. GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. PESTLE analysis is a framework which is imperative for companies such as KFC, as it helps to understand market dynamics & improve its business continuously. (2020) Life expectancy in South Africa from 1870 to 2020, available at: https://www.statista.com/statistics/1072248/life-expectancy-south-africa-historical/ (accessed 03 February 2021), PwC (2020) South Africa Corporate: Taxes on corporate income, available at: http://taxsummaries.pwc.com/ID/South-Africa-Corporate-Taxes-on-corporate-income (Accessed 01 February 2021), Statistics Times (2020) List of Countries by Projected GDP, available at: http://statisticstimes.com/economy/countries-by-projected-gdp.php (Accessed 02 February 2020), The South African (2017) These are the seven biggest business opportunities in SA right now, available at: https://www.thesouthafrican.com/these-are-the-seven-biggest-business-opportunities-in-sa-right-now/ (28 June 2018), The International Trade Administration, (2020), South Africa Information Technology, available at: https://www.export.gov/article?id=South-Africa-information-technology (Accessed 02 February 2021), Worldometer (2021) South Africa Population, available at: https://www.worldometers.info/world-population/south-africa-population/ (accessed 02 February 2020). You will be forwarded to our PDF editor. However, a lot of things have changed since the, countrys first fully democratic election in 1994, Pretoria is the administrative capital of South Africa, while Cape Town is the legislative, capital. It is expected to be the first superpower in Africa soon. However, small businesses pay a lower rate of tax. all employees of a single company, reportstore@globaldata.comTel +44 (0) 20 7947 2960. It may help them carry out a more comprehensive analysis. All Rights Reserved, Economical factors: rand (currency) is in limbo, Social factors: high entrepreneurship spirit, Walgreens SWOT Analysis: Startling Brand Found in Soaring Competition, Aldi SWOT Analysis: Hidden Threats for the Discount Retailer, 5 Ways You Can Improve Relationships With Customers. However, putting these challenges aside, South Africa offers these days good business opportunities in industries such as building and construction supplies, eye care, beauty and cosmetics, automotive, telecommunications, education and utility services.
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