Underlying the formal legislative system is a flexible common law system governing fields such as contract. The common law is fair and logical and will hold no surprises for anyone doing business in South Africa.

Since achieving democratic government in 1994 the Republic of South Africa has had the benefit of a modern Constitution which includes a Bill of Rights which is the cornerstone of democracy. The Bill of Rights enshrines the rights of all people and affirms democratic values of human dignity, equality and freedom. Fundamental rights are thus protected. The Bill of Rights governs the actions of Government as well as private relationships.

Our country has highly sophisticated mining, commercial, financial and industrial sectors which compete with the best throughout the world and attract considerable interest by overseas investors. These sectors operate against a background of political and economic stability that encourages investment.

South Africa has developed equitable labour and employment laws. While in comparison with some other economies the cost of labour is high, investors can operate in South Africa free of any potential criticism regarding the exploitation of labour.

South Africa has become the favoured staging post for investment in Africa south of the Sahara and provides opportunities for trading with Africa, second to none. Southern Africa as a whole, rich as it is in minerals and natural resources, is becoming a strong economic force to the benefit of everyone involved in this region, including overseas investors.

Legislation and associated industry charters have been introduced in South Africa to ensure an equitable participation in ownership and management by historically disadvantaged individuals in commerce and industry. It is essential that these requirements, to which reference is made in this publication in the sections “Black Economic Empowerment” and “Labour and Employment Law”, are well understood by prospective investors in this country.

A new Companies Act is currently going through the legislative process and, although not imminent, will ultimately bring South African company law even closer to current international practice.

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