Developing South Africa as a Gateway for Foreign Investment in Africa: A Critique of South Africa’s Headquarter Company Regime

Abstract

Multinational enterprises which seek to invest in a geographical region often choose certain countries as a base from which they can expand their investments to the other countries in the region. When it comes to the African continent, South Africa is considered ‘the economic powerhouse of Africa’. Its ‘sizable economy, political stability and overall strength in financial services’ makes the country a potential location from which foreign investors can extend their investments into the rest of Africa. Foreign investors would also be able to make use of South Africa’s network of double taxation treaties to trade with other African countries.