Law firm Adams & Adams says South Africa is a preferred business desti- nation for German companies in Africa, as it has good-quality roads, telecoms, harbours, banking systems, insurance and shipping infrastructure.

“Foreign investment is supported in South Africa and local citizens support German brands, such as car manufacturers BMW and Volkswagen of South Africa, as well as sports clothing brand Adidas, among others, as they associate these brands with quality and performance,” says Adams & Adams partner and chairperson Dario Tanziani.

Adams & Adams commercial law section partner Michael Gwala explains that, legally, a company incorporated in South Africa by a foreign person or entity will generally have the same status, powers and duties as those of a local company. “Further, for large businesses, special tax offices have been established across the country by the South African Revenue Service to ensure dedicated and efficient service delivery in terms of processing the tax queries and claims of large and high-turnover companies, which may include foreign-owned companies.”

Gwala says the country’s exchange control measures have also been relaxed to stimulate foreign investment. This makes it easier to move money in and out of the country, if the correct procedures are followed.

Exchange control regulations can present a challenge if misinterpreted. However, it is possible to easily comply with them, without nega- tively affecting the foreign company’s aim of establishing a presence in the country.

“South Africa also functions as a hub for commercial traffic emanating from and destined for the European Union, Asia and the US, as well as the East Coast and West Coast of Africa. Other factors include a favourable legal and business environment, sound economic policies, access to markets, the fact that it is a gateway to Africa, trade reform and strategic alliances, cost and ease of conducting business, industrial capabilities, innovative technological advancement and business competitiveness,” says Gwala.

The country also has an effective court and arbitration system for enforcing contractual rights between companies or between them and any State organ. Further, the buying class of South Africa is growing rapidly, owing to the rise of a black middle class and upper class. The number of viable consumers has also increased dramatically in all areas of trade.

“We have seen many new foreign brands emerging in many sectors of the economy that were not available before. The country is a via- ble investment destination if one wishes to capitalise on this new-found spending power,” says Tanziani.

He says German clients place a high premium on their intellectual property rights. They are thorough, meticulous and expect a high level of service and technical knowledge of the law from their attorneys.

“South Africa is one of the founding signatories to the agreement on Trade-Related Aspects of Intellectual Property Rights (Trips), and its intellectual property laws are constantly being updated to comply with Trips. The country is a good destination for high-end technology, for which Germany is known,” he explains.

South Africa is Germany’s largest trading partner in Africa and trade between the two countries worth €12.6-billion, in 2008. In 2010, Germany was South Africa’s fourth-largest trading partner after China, the US and Japan, with trade totalling €3.718- million.

Adams & Adams provides a range of legal services to several well-known German multinational companies, including BMW, Mercedes-Benz and pharmaceuticals company Bayer, besides others. The services range from filing and prosecution to the granting of patent, trademark and registered design applications, enforcement of those rights and anticounterfeiting – especially in the motor vehicle body parts industry.

The firm provides a range of corporate and commercial law services. These include the establishment and maintenance of local affiliates, compliance with the relevant legislation, transactional work, as well as commercial litigation.