Gauteng Business 2016 edition

SPECIAL FEATURE
The cost of doing business
in Gauteng
The cost of doing business in Gauteng is of key interest to investors and business owners
looking to explore opportunities within this diverse economy – and the good news is that it
is cheaper to do business here than in many of its overseas competition.
With an average petrol price of US$5.06 per gallon (approximately
R11.75 per litre), South Africa ranked 19th out of 60 countries in a
2013 study comparing petrol prices. According to the study, petrol in
South Africa is more expensive in comparison to Egypt (ranked 3rd)
and Nigeria (ranked 6th), the other African countries included on the
list. South Africa fares somewhat more favourably when compared
with her BRIC counterparts (except Russia): petrol prices are higher in
Brazil (ranked 21st at R12.54 per litre), similar in India (ranked 18th at
R11.61 per litre) and China (ranked 15th at R11 per litre), and considerably
lower in Russia (ranked 10th
at R8.06 per litre).
Electricity supply
and tariffs
With infrastructure spend of key importance to government,
every effort is being made to create as competitive
working environment as possible in the bustling
greater Gauteng region, to stimulate further growth
and aid job creation. This article explores some of the daily costs that
companies and commuters can expect to pay.
Petrol prices and other transport costs
In recent years, South Africa’s
electricity supply capacity has
come under increasing pressure,
with moribund infrastructure
and capacity shortages necessitating
the introduction of loadshedding
around two years ago.
As a result, Eskom, South Africa’s
state-owned power generator
and transmitter, has faced growing
pressure amid ever-increasing
demand for electricity.
Labour, water and
communication costs
A 2012 report by UBS indicated
that in 2009, Paris (France) had the
shortest annual working hours of
1 558 hours a year. Johannesburg
(South Africa) reported an average
1 887 hours a year, whereas Seoul
reported 2 308 working hours a
year. Comparing telephone costs
for local calls globally, South Africa
charged 7 US cents per threeminute
call. The United Kingdom,
on the other hand, charged 17 US
cents for the same call.
GAUTENG BUSINESS 2016
40