<strong>By: Gasant Orrie, Cape Managing Partner and Director of the Corporate and Commercial Practice at Cliffe Dekker Hofmeyr (CDH)</strong>

<h2><em>Is this a realistic goal?</em></h2>

President Cyril Ramaphosa delivered his response this week to Parliament’s post-SONA debate, using the opportunity to provide concrete actions and delivery dates for priority areas. One of these, he said, was reducing red tape for doing business in South Africa.

<a href="https://www.worldbank.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf" data-saferedirecturl="https://www.google.com/url?q=https://www.worldbank.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf&amp;source=gmail&amp;ust=1562319989841000&amp;usg=AFQjCNF1ZtbF7uZZXxQDMrxejjjMEKsNkA">The 2018 World Bank’s Ease of Doing Business Index (EDB</a>) sees South Africa’s ranking at 82nd out of 190 economies. Ramaphosa indicated he would like to be in the top 50 within the coming months.

<a href="https://www.cliffedekkerhofmeyr.com/en/people/gasant-orrie.html" data-saferedirecturl="https://www.google.com/url?q=https://www.cliffedekkerhofmeyr.com/en/people/gasant-orrie.html&amp;source=gmail&amp;ust=1562319989841000&amp;usg=AFQjCNGIsrh3KAep8srEnlzO_pcMZF5MBA">Gasant Orrie, Cape Managing Partner and Director of the Corporate and Commercial Practice at Cliffe Dekker Hofmeyr (CDH)</a>, says that while there has been a mixed response to Ramaphosa’s plan of action, South Africa faces several challenges in order to reach the Top 50.

“South Africa has several challenges that have the potential to deter investment, such as policy uncertainty in certain key sectors, the recent news about a dismal GDP, concerns about continued corruption, and the plans for dealing with the instability of several state-owned enterprises,” says Orrie.

That said, Orrie believes that the country also boasts several positive factors which still provide a level of comfort for investors. Referring to CDH’s latest <a href="https://www.cliffedekkerhofmeyr.com/en/news/publications/2018/doing-business-in-south-africa-2018-edition.html" data-saferedirecturl="https://www.google.com/url?q=https://www.cliffedekkerhofmeyr.com/en/news/publications/2018/doing-business-in-south-africa-2018-edition.html&amp;source=gmail&amp;ust=1562319989841000&amp;usg=AFQjCNF4I93gwshtUeWJee6wjHqv2O5GQg"><em>Doing Business in South Africa Report</em></a> - an annual publication that explores the country’s commercial legal landscape - Orrie explains that the attractiveness of a destination is in part determined by the country’s legal framework, political landscape and infrastructure.