Posted Tuesday, May 02, 2006; 4:18 p.m.

Business in SA:
President Thabo Mbeki welcomes foreign investment in South Africa.

By Rocio Zamora
The L.A. Pilot

CAPE TOWN --It's been 12 years since the African National Congress was elected into power after the demise of the Apartheid regime in South Africa.
Since then, political reforms of the post-Apartheid era have helped boost the country’s economy. In their 87th month of straight growth, South Africa has become one of the most productive and advanced economies in the continent.

Foreign Investment in SA
Economic reforms have come to South Africa in the form of tax reductions, relaxed exchange controls, lowered tariffs, and a fiscal deficit that is now under control, making it one of the world's most promising markets.

The government has also focused its efforts to providing all South Africans with social services like light and running water. The post-apartheid government has provided 1.9 million new homes, 4.5 million households with electricity, and 11 million homes with running water since it took office in 1994, according to an article in The Economist.

“South Africa has to be one of the most attractive investment destinations in the world just now,” said Niall Fitzagerald, chairman of Reuters, in the South Africa.info website. “It’s got low costs, great climate, hugely creative people supported by an economy which has been skillfully managed – and it’s the gateway to 200 million people in southern Africa.”

Barclays, a British Bank, and Vodafone, a mobile operator from Britain, are currently two of the biggest investor in the country.

But with all South Africa’s advancements critics are still quick to point out that many residents still live in poverty and the country often seeks to employ foreigners due to the shortage of skilled labor plaguing the country.

Last year the government came up with a new strategy to deal with these issues. The country will begin to concentrate on economics at a local level. This means investing more in small businesses and in developing the skilled labor the country seems to be lacking.