In the past five years, Japan’s foreign direct investment position in South Africa has grown impressively at a 24% compound annual growth rate (CAGR). As of the end of 2012, South Africa also represents more than one third of Japan’s outward investment stock in Africa as a whole.
A key feature of the post-2008 recession has been the increase in prominence of Africa as an investment destination. Africa is indeed showing a higher-than-average growth rate, with a significant number of multinationals having declared their organisations’ growing presence in Africa (according to PwC Africa’s The Africa Business Agenda 2013). One example of Japan’s growing investment is NTT's acquisition of South African IT services firm Dimension Data for $3.2 billion in 2010.
At the regional level, the Southern Africa economy is largely dominated by Africa’s largest market, South Africa, which has managed to weather the recent economic uncertainty mainly due to its prudent fiscal and monetary policies. The country has a well-capitalised banking system, effective regulatory systems, and a well-established manufacturing base. In its 2012-13 Global Competitiveness report, the World Economic Forum ranked South Africa first among African countries for the strength of its auditing and reporting standards, efficacy of boards and regulation of securities exchanges.
Overall, PwC is the largest provider of professional services in Africa with close to 450 partners and over 8,500 people in 32 countries. Since mid-2012, the PwC firms across Central Africa and Southern Africa have been governed, led and managed by a single leadership team.