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SOUTH AFRICA

Since December 1998
Since February 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Competition Act No. 89 of 1998

Competition Amendment Act No. 18 of 2018
It is reported that merger and acquisition-related FDI is scrutinised closely for its impact on jobs and local industry. Sections 13-14 of the Competition Act of 1998 set out the approval mechanism for mergers. In addition, Section 14 of the Competition Amendment Act of 2018 amends Section 18A of the Competition Act, adding a screening in case the implementation of a merger involving a foreign acquiring firm may have an adverse effect on the national security interests of the Republic. National security interests are defined broadly, including "critical infrastructure" sectors.
Coverage Horizontal

SOUTH AFRICA

Since April 2009

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Commercial presence requirement for digital services providers
Companies Act No. 71 of 2008
According to Art. 23.1 of the Companies Act, any external company, defined in the law as an entity incorporated outside the country conducting business within South Africa, must register with the Commission within 20 business days after it begins to conduct business in the country. Additionally, according to Art. 23.3 of the law, each company must maintain at least one office in the Republic and register the address of its office or its principal office if it has more than one office. A company falls under the definition of "external company" when holding a meeting or meetings of the shareholders or board of the foreign company or otherwise conducting the internal affairs of the company; establishing or maintaining any bank or other financial accounts; establishing or maintaining offices or agencies for the transfer, exchange or registration of the foreign company’s securities; creating or acquiring any debts, mortgages or security interests in any property; securing or collecting any debt, or enforcing any mortgage or security interest; acquiring any interest in any property; and entering into contracts of employment.
Coverage Horizontal

SOUTH AFRICA

Reported in 2006, last reported in 2022

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the enforcement of patents
Complaints on enforcement of patents
Practical restrictions on patent enforcement have been recorded in the country, including a lack of transparency, lengthy proceedings, and non-deterrent sanctions. These include:
- Non-infringement opinions: The South African courts have emphasised the importance of obtaining a non-infringement opinion before pursuing patent litigation. Failure to obtain such an opinion may result in an award of costs against the patent owner.
- Limitations on the rights conferred by a patent: Under South African law, the rights conferred by a patent are limited by certain exceptions, such as fair dealing for research and private study. 
- Requirement for specificity: South African courts require patent owners to be specific about the alleged infringing activities, including identifying the infringing products or processes.
- Invalidity challenges: Patents may be challenged on the grounds of invalidity, such as lack of novelty or inventiveness. This may result in the revocation of the patent.
Coverage Horizontal

SOUTH AFRICA

Since March 1999

Pillar Intellectual Property Rights (IPRs)  |  Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
South Africa is a party to the Patent Cooperation Treaty (PCT). However, the country does not consider itself bound by Art. 59 related to disputes.
Coverage Horizontal

SOUTH AFRICA

Since June 1978

Pillar Intellectual Property Rights (IPRs)  |  Indicator Copyright law with clear exceptions
Copyright Act of 1978
South Africa has a clear regime of copyright exceptions that follows the fair dealing model, which enables the lawful use of copyrighted work by others without obtaining permission. Section 12 of the Copyright Act lists the exceptions, which include private reproduction for personal purposes, reproduction and other utilisation for teaching and scientific non-commercial purposes, reproduction, broadcasting, and other communication to the public for informatory purposes, among others.
Coverage Horizontal

SOUTH AFRICA

Reported in 2021, last reported in 2023

Pillar Intellectual Property Rights (IPRs)  |  Indicator Enforcement of copyright online
Lack of adequate enforcement of copyright online
Copyright is not adequately enforced online in South Africa. It has been reported that enforcing copyright online in the country is challenging, particularly in the music, film, and software industries. Online piracy and infringement of copyright laws are prevalent in the country, and many entities, locally and internationally, have expressed concerns about inadequate enforcement mechanisms and legal frameworks. In addition, it is reported that South Africa failed to reach the mandated levels of copyright protection under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), especially regarding the enforcement of online copyright and piracy. Moreover, industry associations such as the Southern African Music Rights Organization (SAMRO) and the Recording Industry of South Africa (RiSA) have also raised concerns about widespread piracy and infringement of copyright laws in the country.
Coverage Software, online media

SOUTH AFRICA

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Copyright Treaty
Lack of ratification of the WIPO Copyright Treaty
South Africa has signed the World Intellectual Property Organization (WIPO) Copyright Treaty in December 1997, but has not ratified it.
Coverage Horizontal

SOUTH AFRICA

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of ratification of the WIPO Performances and Phonograms Treaty
South Africa has signed the World Intellectual Property Organization (WIPO) Copyright Treaty in December 1997, but has not ratified it.
Coverage Horizontal

SOUTH AFRICA

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Comprehensive protection of trade secrets under common law
South Africa does not have specific legislation governing trade secrets or know-how, though they can be effectively protected under South African common law.
Coverage Horizontal

SOUTH AFRICA

Since February 2000
Since January 2004
Since November 2022, entry into force in January 2023

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Preferential Procurement Policy Framework Act of 2000

Broad-Based Black Economic Empowerment (B-BBEE) Act of 2003

Preferential Procurement Regulations, 2022
Section 2 of the Preferential Procurement Policy Framework Act (PPPFA) of 2000 establishes a framework for implementing preferential procurement policies in South Africa. The PPPFA requires government entities to set criteria for evaluating tenders to protect and benefit "persons, or categories of persons, historically disadvantaged by unfair discrimination on the basis of race, gender, or disability".
In order to enforce the PPPFA, the Broad-Based Black Economic Empowerment (B-BBEE) Act was passed in 2003. Under Section 10 of the Act, a certain percentage of government contracts must be awarded to black-owned businesses. However, the exact percentage is not specified in the agreement because it is formula-based. The Act uses a scorecard system to measure the level of black economic empowerment (B-BBEE) of companies. It requires that government institutions give preference to companies with higher B-BBEE scores when awarding contracts.
In 2017, the Minister of Finance introduced more detailed Preferential Procurement Regulations, which include pre-qualification criteria for preferential procurement and specific procurement policies for designated sectors and tenders. However, the Constitutional Court struck down some provisions of these regulations in February 2022. As a result, the government published a new draft of the Preferential Procurement Regulations in November 2022, which came into effect in January 2023. Under the 2022 regulations, preference points continue to be awarded based on the offered price (80 or 90 points out of 100), with additional preference points (20 or 10 points) granted based on the achievement of specific goals set in the tender invitation, rather than solely on the B-BBEE score. These goals include contracting with historically disadvantaged individuals and implementing the Reconstruction and Development Programme (RDP). Furthermore, the 2022 regulations eliminate the use of 'prequalification criteria' in tenders, providing more discretion for state organs in applying their procurement policies. These regulations are placeholders until a new public procurement bill is finalised.
Coverage Horizontal

SOUTH AFRICA

Since March 2020

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Practice Note on Local Content for Electronic and Information Technology Goods
Annex A of the Practice Note on Local Content for Electronic and Information Technology Goods published by the Department of Trade and Industry defines guidelines on local content for electronic and information technology goods in public tenders. The note requires a certain percentage of the value of ICT products to be of local origin. The local content requirement varies depending on the product and can range from 30% to 100%.
Coverage Electronic and information technology goods

SOUTH AFRICA

Reported in 2023

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Lack of transparency in tenders
It is reported that the Preferential Procurement Regulations have created uncertainty regarding the criteria for identifying "specific previously disadvantaged groups" eligible for preference margins in procurement processes. Although the regulations do not mandate the use of the Broad-Based Black Economic Empowerment Act of 2013, state entities may still consider it alongside other objectives, such as employment equity, green procurement, and local content. While these regulations offer more flexibility, there are ongoing concerns that the allocation of preference points may not be fair, equitable, or transparent.
Coverage Horizontal
"SELECT DISTINCT(post_id) FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'ZA')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
[{"post_id":"104949"},{"post_id":"104950"},{"post_id":"104951"}]
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'impact' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'ZA')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2')\n\t\t\t\t\t\t\t\t)"
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'ZA')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
ITA: [{"meta_value":"1.00"}]

SOUTH AFRICA

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
1.58%
Coverage rate of zero-tariffs on ICT goods (%)
74.97%
Coverage: ICT goods

SOUTH AFRICA

N/A

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in the Information Technology Agreement (ITA) and in ITA Expansion Agreement (ITA II)
South Africa is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).
Coverage ICT goods

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