Swot Analysis Of Corruption In South Africa

Political

South Africa was a country colonised by England and achieved independence on May 1910. The first all-race multiparty election took place in 1994. This event is now seen as the formal end of apartheid. In 2009, the ruling African National Congress (ANC) won its third consecutive election, electing Jacob Zuma as President.

Corruption is extremely prevalent in the country. Experts calculate that the country may have lost as much as R675 billion as a result of corruption since 1994. Indeed, being implicated in questionable politics might discourage those thinking about investing in South African businesses, or attempting to build one. According to Chapter 14 of the National Development Plan, fighting corruption is a priority to the government,

The South African currency, Rand, is at an all-time low. While the Reserve Bank has the ability to influence Rand, it’s staying neutral as the rand continues to weaken which is problematic. Right now, the currency is subjected by the market forces. But with such low currency and exchange rate, it’s a wonder how businesses will start or stay in demand with the diminishing Rand.

Over the last 20 years, the State has made strides in addressing income inequality. However, income inequality remains a major challenge affecting the country and according to the NDP will continue to be a challenge, at least until 2030.

Importantly, income not only has intrinsic value but is an important determinant on what other social and economic aspects individuals can access. For instance, income is a very important determent for accessing food and healthcare – both necessary for the full development of the person, which further impacts on

TRALAC- Trade Law Centre in South Africa- is a not for profit organization building trade law capacity in the southern African region. One of the major concerns in South Africa is the Governance failure prevalent in the country. A lack of governance leads to a lack of responsibility and accountability the help to assure trade productivity.

Major legal issues in South Africa stem from the fact that the political system is corrupt and lacks stability. Politicians conduct unethical practices, management has a high lack of repercussions for their actions, and fear amongst the working class.

South Africa’s labors laws largely follow that of the United Kingdom. Value added tax (VAT) is included for business initiated in South Africa. Tax rates and policies in South Africa fall in the middle of the scale, this is largely related to the major projects undertaken by the government to increase education and standard of living.

Some other taxes to consider in South Africa:

Stamp duty

Customs and excise