EU recovery a boost for S.Africa economy - CNBC Africa

EU recovery a boost for S.Africa economy

Southern Africa

by Trust Matsilele 0

European Union recovery could be a boost for the South African economy. PHOTO: Cherryflava

Edward Dreyer, partner and director at the company noted that even though South Africa has gone through tough times networks suggested otherwise.

“We have the skills and the fundamentals especially in banking and regulatory systems,” Dreyer told CNBC Africa.

He added that Africa’s second largest economy had reported an increasing number of interested enquiries from Europe.

“In the last few months we have seen an increase in the number of business enquiries from companies coming from the Eurozone,” said Dreyer.


He noted that South Africa was still viewed by its European partners as the hub to grow into Africa partly because of its skills base and advanced infrastructure.

(WATCH VIDEO: Improving trade relations between SADC and EU)

However, Dreyer lamented the challenges posed by the country’s regulative regime making it difficult for foreign companies to register companies in time.

“One of the biggest challenges faced by businesses from Europe comes with setting up businesses in Africa as the process takes some time,” he noted.

South Africa's trade relations with the European Union (EU) are governed by the Trade, Development and Co-operation agreement concluded with the EU in 1999.

The EU commission explained that South Africa's exports to the EU are growing and the composition of these exports is becoming more diverse.

(READ MORE: S.Africa-EU summit to strengthen strategic relations)

The commission website states, “South Africa is gradually moving from mainly commodity-based products to a more diversified export profile that includes manufactured products.”

Currently South Africa has poor economic fundamentals such as the weakening currency, rising inflation and labour strikes affecting productivity by mining and industrial companies.