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March 12.2025
3 Minutes Read

How KPMG Survey Reveals Business Opportunities for German Firms in South Africa

Mobile news on German business opportunities in Southern Africa.

Optimism Amidst Challenges: German Companies in Southern Africa

In the wake of South Africa’s recent national elections, a new survey reveals a cautiously optimistic outlook for German businesses operating in South Africa and the broader Southern African region. Conducted by KPMG Germany in collaboration with AHK Southern Africa, the ‘German-Southern African Business Outlook 2025’ offers critical insights into the professional climate and investment attitudes of German firms.

Survey Insights: Key Findings from the KPMG-AHK Survey

From November 11 to December 31, 2024, KPMG and AHK engaged 98 companies to explore the pressing challenges and opportunities facing businesses in the region. The results indicate a significant degree of optimism: 64% of participants in South Africa expect an increase in sales within the year, while 58% in the wider Southern Africa region echo this sentiment.

Profit expectations are also uplifting, with 48% of South African respondents anticipating higher profits—this reflects a gradual turnaround as businesses adapt to economic challenges. Furthermore, 44% of firms plan to invest in South Africa over the next three years, with at least €3 million earmarked for projects by 10% of these companies. In contrast, investment interest wanes in other Southern African countries, where only 20% express investment plans.

The Impact of Political Stability on Business Growth

The survey's responses suggest a strong correlation between enhanced political stability and business growth. Almost all respondents (77%) believe the recent election outcomes will favorably impact the economic environment. However, 65% anticipate that improvements will be moderate, illustrating a tempered perspective. Business leaders are hopeful that the newly formed Government of National Unity will spur necessary reforms for sustainable growth as they work to address longstanding issues in infrastructure and crime.

Corruption and Infrastructure: A Business Imperative

As noted by Andreas Glunz, KPMG Germany’s managing partner for international business, one of the most pressing tasks for the new government is to systematically combat corruption and crime. This sentiment resonates with 46% of surveyed companies identifying this as a paramount focus for improvement, clarifying their critical concern for the local business environment. Investment in infrastructure modernization—favored by 39% of firms—also appears essential to facilitate economic expansion.

Challenges Driving Innovation: The Role of Technology

In a world increasingly driven by technological advancements, German businesses are exploring digital solutions as they navigate local challenges. Areas such as cloud computing, data analytics, and cybersecurity are gaining traction, reflecting a need to innovate amidst infrastructural gaps.
For many firms, adapting technologies—like IOT devices for supply chain improvements or AI tools for decision-making—serves as both a response to immediate challenges and a catalyst for long-term growth.

Future Predictions: What Lies Ahead for German Enterprises

As businesses look beyond immediate recovery, the forecast for growth hinges on the government’s ability to stabilize political and economic conditions. The formation of a united government has reinvigorated hopes. Many German companies see South Africa as a gateway to expanding markets across sub-Saharan Africa, capitalizing on a youthful demographic and untapped resources.

While optimism prevails, industry players must remain cautiously vigilant, embracing innovative strategies and digital transformation frameworks that encompass automation, digital skills, and responsible tech investments. A holistic focus on cultural and social adaptation will serve as a foundation for creating robust business ecosystems ready to adapt dynamically.

Conclusion: Embracing Opportunities Amidst Uncertainty

In summary, the KPMG-AHK survey reflects a complex yet promising landscape for German companies in Southern Africa. The confluence of political change and economic opportunity beckons resilience and innovation from business leaders. Understanding and integrating advanced technologies, fostering public-private partnerships, and tackling systemic challenges will determine the region's future success. As executives and professionals hone their strategies, continuing to monitor evolving conditions will be crucial for sustaining growth and tapping into Southern Africa's full potential.

Stay informed and be part of the change—understand how you can engage with the technological advancements that may redefine business landscapes. Join the conversation today by exploring more insights on innovations in the region.

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12.19.2025

Navigating the Global Minimum Tax: Key Insights for Professionals

Update Understanding the Global Minimum Tax and Its ImplicationsOn March 16, 2026, the South African Revenue Service (SARS) is set to launch the registration and notification functionality for the Global Minimum Tax (GMT) through its familiar eFiling platform. This initiative stems from South Africa's commitment to the Global Anti-Base Erosion (GloBE) framework, aimed at countering the challenges large multinational enterprises (MNEs) face regarding taxation, especially in a global landscape that increasingly values fair contributions to public revenues.The GMT will ensure that MNEs generating revenue over €750 million pay a minimum tax of 15% on their global income, addressing the tax base erosion that many nations have witnessed as MNEs exploit gaps in tax legislation.Background of the Global Tax Reform MovementThe GMT initiative is part of a broader tax reform movement that gained traction following discussions by the Organisation for Economic Co-operation and Development (OECD) and G20 nations. This movement leverages a coordinated taxation approach to minimize the occurrence of tax base erosion and profit shifting (BEPS) strategies, where companies shift their profits to low-tax jurisdictions, thus evading fair taxation.In South Africa, the plan, as outlined by the Minister of Finance in the latest budget review, is expected to fortify the country’s corporate tax base by an estimated 8 billion ZAR by 2026/2027. The anticipation surrounding the GMT signifies a shift in how taxation is perceived—no longer as a burden, but as a necessary contribution to societal infrastructure and welfare.Implementation of Registration and NotificationAs SARS gears up for the launch of the GMT registration, the smooth transition to this new system hinges on utilizing existing systems to minimize any potential disruptions. The integration of GMT registration within the eFiling platform is critical for businesses who need clarity and efficiency in compliance. Utilizing software already familiar to tax practitioners could enhance compliance rates.The registration process will also include notification requirements, ensuring that entities maintain accountability regarding their tax obligations. Transparency and proper communication from SARS about the process is essential, as it enhances trust in the government's ability to manage these reforms effectively.Potential Impacts on BusinessesFor local businesses, the GMT represents both challenges and opportunities. Insufficient preparation for compliance could lead to penalties and loss of reputational capital. Businesses must develop strong fiscal strategies ensuring that they adhere to the new standards while continuing to innovate and drive profits.Conversely, those willing to invest in proper systems and personnel to manage their tax obligations could find themselves in a strong competitive position, particularly as international trade dynamics evolve in response to these global tax reforms.Looking Ahead: The Future of Global TaxationThe rollout of the Global Minimum Tax and the subsequent changes to South Africa's tax policies reinforce a growing consensus among nations about the value of fair and just taxation. This paradigm shift may inspire other regions to adopt similar frameworks, potentially leveling the playing field globally.The concerns of citizens regarding the effectiveness of government oversight and corporate accountability can only be adequately addressed through continuous engagement from both the government and citizens alike. As the GMT unfolds, real-time public discourse about its effectiveness will be paramount.Call to Action: Stay InformedIn light of these developments, South African professionals, especially businesses and tax practitioners, are advised to familiarize themselves with the upcoming changes. Engaging with SARS for additional insights or guidance is encouraged to navigate this new landscape effectively. For optimal results, prepare your processes now to avoid last-minute complications on launch day.

12.19.2025

How Southern Africa's Maize Heartland is Stronger Than Ever Before

Update The Resilience of Southern Africa's Maize Producers Southern Africa’s maize-producing regions are witnessing an inspiring recovery, showcasing resilience that bodes well for the food security of the region. In the wake of the catastrophic El Niño drought that devastated crops, farmers in Zimbabwe and its neighboring countries are now filled with hope as favorable La Niña rains invigorate their fields, propelling maize production back on the rise. Zimbabwe's maize production fluctuated considerably over the past five years, showcasing the harsh realities faced by farmers. From 1.53 million tonnes in 2020/21 to a devastating dip of 0.77 million in 2021/22 caused by poor rainfall, recovery seemed uncertain. However, recent figures indicate an increase back to approximately 1.3 million tonnes in the 2024/25 season, which significantly eases the strain on maize imports and stabilizes local grain processors like National Foods and Blue Ribbon. Importance of South Africa's Role Amidst this recovery in Zimbabwe, South Africa remains a key player in the regional maize supply chain, standing unmatched with a projected harvest of 16.44 million tonnes for the 2024/25 season. This robust figure reflects a remarkable increase from previous years, positioning South Africa not only as a regional supplier but a significant buffer against food shortages that can arise during unpredictable climatic shifts. The country's leading agricultural economist, Wandile Sihlobo, notes that this growth can be attributed to improved weather patterns and agricultural practices, which have yielded strong results in core areas like Free State and Mpumalanga. This success is critical, further supporting the agricultural and economic framework of the Southern African Development Community (SADC). Challenges and Opportunities on the Horizon Despite the upbeat forecasts, challenges persist. In particular, early rains have delayed planting and affected germination in certain regions, triggering cautious optimism among farmers. Yet, with the right practices and timely interventions, it is plausible to foresee continued recovery in production levels across the SADC region. Moreover, Zambia's maize yield has also seen a promising bounce back, forecasting 3.66 million tonnes which not only aids in local consumption but also pressures nearby countries to improve their agricultural outputs. The combined resilience from these three nations lays a robust groundwork for regional food security, aiding in tackling hunger while also opening avenues for beneficial trade. Future Trends in Agricultural Economics The shift in agricultural dynamics, shaped heavily by climate patterns, necessitates that producers adopt innovative techniques such as precision agriculture, optimization in water usage, and crop diversity. Embracing technology and data analytics could revolutionize farming in the region, addressing both productivity and sustainability. Tools such as IoT devices can provide farmers with real-time data on soil quality and weather conditions, allowing for more informed decision-making and efficient resource allocation. The Path Forward: Implications and Actions This positive trajectory in maize production provides several actionable insights for executives and decision-makers within the agricultural sector. It underlines the importance of establishing resilient supply chains that can adapt to climatic changes while ensuring profitability. As maize prices stabilize, it opens discussions on future trade agreements and investment in agricultural technology to further enhance outputs. Thus, it is imperative for stakeholders to recognize the ongoing changes, invest in sustainable practices, and leverage technology to build a more resilient agricultural sector. A focus on digital transformation within agriculture may be necessary to ensure the long-term viability of maize production in Southern Africa. As sensor technology and machine learning continue to advance, the potential for smart farming might shape the next agricultural revolution, benefitting not only the farmers but also the larger communities dependent on this vital crop. Call to Action As you reflect on these insights into the resilience of Southern Africa's maize production, consider how innovation and collaboration can foster further recovery and sustainable agricultural practices. Engage with local farmers, support agritech initiatives, and explore investments that can help navigate the complexities of modern farming.

12.18.2025

South Africa Takes the Lead as Israel's Largest Coal Supplier Amid Controversy

Update South Africa's Rising Coal Exports: A Complicated Situation In a surprising turn of events, South Africa has emerged as Israel's largest coal supplier, absorbing Colombia's former position after the South American nation implemented a strict coal export ban. This transition directly correlates with heightened tensions and accusations surrounding Israel's military actions during the Gaza conflict, which have sparked international condemnation—including a high-profile lawsuit initiated by South Africa against Israel at the International Court of Justice. Coal Export Trends Amid Political Turmoil According to recent reports, South African coal exports to Israel surged by an impressive 87% during the three months leading up to November, bringing shipments to 474,000 metric tonnes—a dramatic increase fueled by Colombia's decision to halt its coal exports to Israel due to humanitarian concerns raised by the ongoing conflict. This spike in exports positions South Africa to account for more than 55% of Israel's coal imports from maritime sources, a significant increase from previous years. The shift underscores a complicated dichotomy in South Africa's foreign policy and its ongoing condemnation of Israel's actions, leading many critics to label this as hypocrisy. The Growing Tensions: A Closer Look A critical examination of this situation reveals a profound contradiction: South Africa accuses Israel of committing genocide against Palestinians, yet it simultaneously increases coal exports to this very nation. This inconsistency raises ethical questions about the implications of trade in the face of international humanitarian crises. Colombia's cessation of coal shipments stemmed from a firm stance taken by President Gustavo Petro in response to allegations of war crimes, a move that forced Israel to seek alternative sources to meet its energy needs. While South Africa capitalizes on this commodity gap, it is difficult to ignore the moral complexities involved in aligning economic interests with humanitarian stances. The Potential Economic Impact on South Africa The implications of this surge in coal exports extend beyond the immediate economic benefits. In a country grappling with its energy supply challenges, encapsulated in the ongoing Eskom crisis and load shedding problems, the decision to increase coal production may bring short-term financial relief. Yet, it raises larger questions about South Africa's energy strategy and commitment to renewable alternatives amidst ongoing conversations about climate change. As coal remains a contentious energy source due to its environmental impact, experts argue about the need for a more sustainable strategy that minimizes pollution and advances South Africa’s goals for economic recovery and energy diversification. Public sector policies and interventions are vital in navigating these challenges as the nation manages both economic and moral recovery. What Lies Ahead for South Africa-Israel Relations? South Africa’s growing coal trade with Israel draws attention to the broader questions of international diplomacy and foreign relations. The dynamics shift considerably as geopolitical interests intermingle with humanitarian discourse. Analysts suggest that South Africa may need to reconsider its coal dependency in light of both reputational and environmental concerns, particularly as climate commitments grow increasingly imperative. The developments in this coal trade are emblematic not only of South Africa's changing role in global trade dynamics but also of the urgent need to engage in dialogues surrounding ethical consumption and energy sourcing. As countries navigate the intersection of commerce and moral responsibility, South Africa's example could serve as a critical case study in balancing national interests with global ethical considerations. Calls for Action and the Path Forward Ultimately, the evolving scenario presents an opportunity for South Africa to reassess its energy policies and foreign relations. Stakeholders—ranging from government officials to civil society—must engage in conversations about the implications of this dynamic. Advocating for sustainable energy practices while addressing immediate economic benefits can lay the groundwork for a more comprehensive strategy that reflects both national interests and global responsibilities. As citizens, it is crucial to engage in dialogue about energy sourcing and to press for greater accountability from both our government and industry leaders. Awareness and advocacy can lead to the strengthening of policies that align economic empowerment with ethical responsibility.

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