Longyuan South Africa Renewables has completed an in-depth and practical research report recently: Research on Risks and Issues of Chinese State-owned Companies under the South African Investment Environment.
The research report, jointly released with PriceMetrics, focuses on the risks and issues that Chinese companies face in the South African investment environment. It provides an overview of the country's political, economic, regulatory, and social contexts, as well as important features of doing business in the country and foreign investment incentives.
The report collects statistics and information for individuals and companies from China and other countries around the world who are interested in investing in South Africa.
Every effort has been made to ensure that the data and opinions in this report are accurate. Topics like "An overview and the Business Case for Investing in South Africa," "Foreign Investment in South Africa," "Political Institutions and Governance in South Africa," "Taxation," "Immigration, Visas and Permits," "Broad-Based Black Economic Empowerment (B-BBEE)," "Mining, Telecommunications, and Land in South Africa," and "Investment Incentives" are covered in the 23-chapter report.
Longyuan SA Renewables is a subsidiary of China Longyuan and China Energy, the world's largest wind power developer with more than 22GW and 46GW installed wind capacity respectively.
Currently, Longyuan SA invests and operates two wind projects in South Africa: Longyuan Mulilo De Aar Wind Power Projects in Northern Cape (244.5MW in total), which generate renewable energy and help the South African government meet its energy conservation and emission reduction targets, as well as the obligations of the "Paris Agreement."
Despite all the excellent work it has done in providing electricity to national grid, Longyuan has been supplying more than just power to Northern Cape communities, as reported by local media Independent in December of last year.
Through the implementation of various long-term Socio-economic Development and Enterprise Development initiatives, Longyuan has also created many jobs and supported the disadvantaged people and the seniors in South Africa, notably inhabitants in the local community.
The report concludes that there are various prospects for investors, particularly in the energy, mining, and transportation infrastructure sectors. China's major direct investments are welcomed and will contribute to South Africa's economic development.
Investors should be aware of several issues, such as slow economic growth and an imprecise and unpredictable institutional framework, which may or may not stimulate foreign investment in South Africa.
South Africa is home to a lot of multinational corporations, many of which see the country as their African headquarters. Foreign-owned companies' subsidiaries have access to low-cost local borrowing thanks to the liquid banking and financial services industry. As the research suggested, Chinese enterprises interested in investing in Africa could consider establishing a regional headquarters for their activities on the continent in South Africa.
PriceMetrics is an influential South African economic research consultancy offering independent analysis and expertise. The research plays an important role which serves as guidance for Chinese as well as other foreign countries’ investors planning to invest in South Africa, as it compiles and prioritizes the most relevant South African laws, regulations, policies etc for foreign investment; more importantly, the report provides not merely theory, which includes conclusions and recommendations accordingly.