Over the years now, the South African government has adopted a wide range of domestic policies as well as investment policy in SA and has executed diverse measures to lure foreign investment and support domestic entities, particularly small to medium enterprises, to participate in foreign markets.
The implemented measures by the government include, inter alia, that is the formation of capable institutions, negotiating and participating in foreign investment treaties, the provision of tax incentives, streamlining of access to capital, and the establishment of administrative support agencies and incubators.
From the information in this article, you can begin your investment journey in South Africa by carefully studying these investment Acts in SA.
You will also get to know what the protection of investment Act is and the minimum amount of money you can begin investing in South Africa.
South Africa Investment Policy
According to south Africa Investment Policy, an investment is:
a. any lawful enterprise established, acquired or expanded by an investor in accordance with the laws of the Republic, committing resources of economic value over a reasonable period of time, in anticipation of profit;
b. the holding or acquisition of shares, debentures or other ownership instruments of such an enterprise; or 50
c. the holding, acquisition, or merger with another enterprise outside the Republic, only in so far as such holding, acquisition or merger with another enterprise outside the Republic has an effect on an investment in the Republic.
2) For the purposes of the definition of ‘‘investment’’, an enterprise may possess assets such as, amongst others:
a. shares as defined by the Companies Act, 2008 (Act No. 71 of 2008), stocks, debentures, securities as defined in the Financial Markets Act, 2012 (Act No. 19 of 2012), or other equity instruments of the enterprise or another enterprise;
b. a debt security of another enterprise;
c. loans to an enterprise;
d. movable or immovable property or other property rights such as mortgages, liens or pledges;
e. claims to money or to any performance under contract having a financial value;
f. copyrights, know-how, goodwill, or intellectual property rights such as patents, trademarks, industrial designs, and trade names, to the extent that they are recognized under the law of South Africa;
g. returns such as profits, dividends, royalties or income yielded by an investment; or
h. rights or concessions conferred by law or under contract, including licenses to cultivate, extract or exploit natural resources.
What’s the minimum amount I can invest in South Africa?
The minimum amount that can be invested is R1 000.00 and the investment may not exceed R5 million.
What is Protection of Investment Act?
The Protection of Investment Act 22 of 2015 goals is:
- to provide for the protection of investors and their investments
- to achieve a balance of rights and obligations that apply to all investors
- to provide for matters connected therewith.
Before investing in South Africa, it is of great importance to fully understand the investment policy in SA