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africa1According to a report released by the Economist, current growth rates suggest that Africa may soon become the world’s new investment frontier.

The publication found that six of the ten fastest-growing economies of the world were in Africa, with the International Monetary Fund projecting that the continent may soon occupy seven out of the total number of places, overtaking Asian competitors in terms of future business opportunities.

International investors have started noticing this trend and are seeking new opportunities in the region.

Dennis Nally, chairman of PricewatersCoopers (PwC) International, said, “Africa is an important frontier for economic growth. We believe the regional economy could double by 2020 to nearly US$3 trillion, and we are getting a clear signal from our international clients that Africa is an increasingly important market for them.”

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africaAs a continent, Africa is seeing huge growth, with a collective GDP of $1.6 trillion in 2008 roughly equal to Brazil`s or Russia`s. Fiona Murchie analyses the challenges and rewards of doing business in this exciting emerging economy, from both the employer`s and the employee`s perspective.

A recent McKinsey report, Lions on the Move: the progress and potential of African economies, powerfully highlights Africa`s future role as a world player, leaving no doubt that the continent is creating substantial new business opportunities, which are often overlooked by global companies. The secret of success, it concludes, is to embrace the spirit of Africa and all the complexities of operating there, in order, ultimately, to gain the rewards and support the continent`s development.

Mobility issues for companies relocating employees to Africa are considerable. The move can be financially rewarding for the company and the assignee, but it is expensive  to send people, and there are tax and payroll issues, as well as currency fluctuations, to take into account. For those moving to Africa and working there, huge social adjustments are necessary, particularly when operating in remote and underdeveloped locations. The variation in quality of life from country to country must be taken into account, as must the cost of living and the cultural differences. These were the insights of Carol Hondonga, recruiting and talent manager, Rio Tinto, based in Johannesburg, speaking about deploying talent in African markets at the EMEA workforce summit run by ERC in Frankfurt in June.

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table top mountain south africaStephen Levitt, CEO of removals expert Clark & Rose, has provided the following guidance for those relocating to South Africa on what can, and cannot, be imported into the country.

What can I take with me?

If you are immigrating to South Africa, you are permitted to import your household goods and personal effects (excluding alcoholic beverages and tobacco products) without the payment of import duties.

It is essential that you are in South Africa when your consignment arrives. Should you wish to import your effects after your arrival, you have six months to complete the relocation. After that period, you will need special permission to make use of the import concession.

You are prohibited from shipping, among other items, two-way radios, feathers, furs, animal skins and ivory, and any product from a protected species.

For further details, see the South African Revenue Services website, www.sars.gov.za

Can I take my car or motorbike?

If you`re a first-time migrant to South Africa, you can import one motor vehicle per family free of duty.

First, before the vehicle is shipped to South Africa, you must get a letter of authority (LOA) issued by the South African Bureau of Standards (SABS). This LOA has to be submitted to customs at the time of clearance. You will also require an import permit issued by South Africa`s Department of Trade and Industry.

Duties and VAT on importing a vehicle are calculated upon the value accepted by customs plus 10%, which is called the customs value. Duty is then charged at 58% of this customs value. To calculate the VAT, this duty amount is added to the customs value, then 14% VAT is applied to the combined customs value and duty.

To avoid paying duty and VAT on your car, you will need to prove to South African customs that when you departed from South Africa you had no intention of ever returning. That will include proving that you closed all bank accounts in South Africa and retained no property in South Africa. Also, you will need to prove that you owned a home and obtained permanent status in your country of origin. It`s also worth noting that no left-hand drive vehicles purchased after 1 January 2000 will be allowed entry.

For further information, see www.sabs.co.za

What about duties, VAT and tax?

A peculiar feature of importing goods into South Africa is that the owner of the shipment must be in South Africa before customs clearance can take place. Provided that this is the case, household goods and personal effects can be imported duty free.

If you`re a returning resident, you must have been absent from South Africa for an unbroken period of at least six months, and, to avoid paying duty and VAT, you will need to prove to South African customs that when you departed from South Africa you had no intention of ever returning. This will include proving that all bank accounts in South Africa were closed and that no property was retained in South Africa. Also, you will need to prove that you owned a home and obtained permanent status in your country of origin.

For more information, including a comprehensive guide to shipping methods, go to www.clarkandrose.co.uk/south-africa

 

Africa - Migration of WildebeastSteve Blackmore, international sales manager at removals and storage specialist Fox International, shares some tips for ensuring a trouble-free move to Africa. Make sure you pass them on to your assignees.

Relocations to Africa are increasing as its many emerging markets continue to develop. An estimated eight million expats currently live in Africa, and removals have mirrored this growth over recent years.

Once you have obtained your visa or work permit, you may be considering shipping personal effects to one of the 50+ countries that make up Africa.

Shipping by sea is the most economical method of transporting your belongings, but it isn`t the only one. Companies in the UK are able to cater for moving your possessions from anywhere in the world to your new home, wherever it is on the continent of Africa. Whether you are looking at taking a few pieces by air or sending the entire contents of your home and/or business, international removals companies are able to offer a tailor-made solution to your relocation needs.

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Traveling to Africa  adviceTravis Vincent, director of security services at International SOS, has some good advice for those travelling in this often-unpredictable part of the world.
  1. Awareness - The security situation can change quickly in remote areas. Know what the threats are and how to mitigate them
  2. Profile - Individuals are less likely to draw the attention of criminals if they look less of a worthwhile target
  3. Routine - Vary your daily routine, so your movements do not become predictable
  4. Layers of protection - Good personal security involves layers of protection, including awareness, procedural and physical measures
  5. Planning - Planning all aspects of a journey is key to reducing an individual`s risk profile

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