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Competition in South Africa’s highly concentrated banking sector has led to it having the highest penetration rates – both in terms of credit to GDP and banked customers – of any African country. The sector had recovered from the effects of the global financial crisis on the real economy by the start of 2012, but significant uncertainties remain, stemming mainly from the flat growth outlook in the EU, the key market for South Africa’s exports. Despite downside economic risk on the domestic and external fronts, South African lenders remain more profitable than their Western peers. Complying with a raft of new rules will pose its own challenges and bring associated costs, yet remaining at the forefront of regulatory change globally should cement the country’s position as the continent’s most transparent and resilient segment. This chapter contains interviews with Gill Marcus, Governor, South Africa Reserve Bank; and Riaan Stassen, Chief Executive, Capitec Bank; as well as a roundtable with Maria Ramos, CEO, Absa Group; Sizwe Nxasana, CEO, FirstRand; Michael Brown, CEO, Nedbank Group; and Sim Tshabalala, Joint Group CEO, Standard Bank.

With a gross GDP of approximately R3.2trn ($390bn) as of year-end 2012, South Africa has the largest economy in Africa and the 28th largest globally. Industrial strife and policy uncertainty, however, have become key sources of investor concern of late. Recent years of slowing growth have failed to make much of a dent in structurally high unemployment and inequality, although a new government-endorsed development plan seeks to broaden inclusion and establish the foundations for higher-value-added growth. Despite significant downside risks, the development agenda laid out in the 2013 budget and other government policies are designed to steer both its economic planning and private sector investment for the next two decades. This chapter contains interviews with Pravin Gordhan, Minister of Finance; and Rob Davies, Minister of Trade and Industry.

Among the cultural attractions that Colombia has to offer, its array of music and dance styles are the most representative. In addition to an introduction to Colombia’s most distinguished dances, this chapter contains helpful information for visitors to Colombia, including information on dress code, language, visas, communications, currency and traffic. It also features hotel listings and contact information for various institutions, including embassies and regional agencies.

Since 1990 Colombia has attempted to modernise its legal system to promote economic growth and attract foreign investment. The array of recently signed free trade agreements as well as reforms to increase transparency and participation are redefining the legal landscape, which, having undergone significant improvements, still suffers from a weak judicial system in enforcement of contracts and significant bureaucratic delays. This chapters features a viewpoint from Martín Carrizosa, Partner, Prietocarrizosa on the significance of the Pacific Alliance.

This chapter offers a comprehensive overview of the tax reform introduced in 2012, which sought to increase transparency and participation and affected a number of important areas, such as capital gains, mergers, share acquisition, branch profits and equity contributions. Among other changes, the reform reduced the capital gains tax, introduced the concepts of thin capitalisation and income tax for equality, as well as a registration tax on cash contributions. This chapter features a viewpoint from Eduardo Calero, Partner, PwC, on the implications of the reform.