France is the business partner you want — in SA or in Europe

South Africans have had their eyes on France recently thanks to all the sporting action that’s been happening in this European hotspot.

Many local fans travelled to France to witness the Springboks’ victory against New Zealand’s All Blacks in the final of the 2023 Rugby World Cup. A few months later, SA tourists were back on the streets of Paris to attend the 2024 Paris Olympics and Paralymics.

Apart from all the sport that’s put France in the spotlight, the country is well known for its art de vivre (art of living well), its citizens’ taste for fashion, cuisine, cheese and wine, and its cultural heritage ranging from enlightenment philosophy to architecture.

Travelling to France, one can appreciate the beauty of Paris and other French cities with vibrant city centres full of cafés and bars, theatres, bookstores and restaurants, where life never stops. There you are encouraged to leave your car in the garage and walk where you like.

But what South Africans might not know is that France also relies on bold and passionate entrepreneurs (a French word by the way) and that the environment for doing business in France has never been easier.

They might also not be aware that the French economic presence in SA is large. In fact, France is one of the main investors in Mzansi, with a direct impact on local job creation. There are about 480 French companies in SA employing more than 65,000 people. 

Since 2019, French companies have proudly committed R70bn in cross-sectoral investments — a testament to the country’s long-term dedication to SA’s transformation. This covers a wide range of sectors including energy, transport, water and waste management, industrial manufacturing, food and beverages, and tourism. You’ll likely recognise the names of French companies such as L’Oréal, LVMH, Clarins, Danone, Air France, Veolia, TotalEnergies, Decathlon, JCDecaux, Alstom, Stellantis, Renault, CMA CGM, Airbus, Air Liquide, EDF, Pernod Ricard, BNP Paribas, Mazars, Societe Generale or Leroy Merlin. 

France is also an economic powerhouse (it’s ranked as the world’s seventh largest economy) and, if you’re considering investing in France, some hard figures should convince you it’s the right move. 

According to EY’s annual attractiveness report, France has been Europe’s leading destination for foreign direct investment projects for five years, ahead of Germany and the UK.

In 2023, 1,815 international investment projects were registered in France. These projects will enable about 60,000 jobs to be created or maintained over three years.

In less than four years, the number of French unicorns (start-ups with a capital of more than $1bn) has grown from four to 33 and counting.

France is also the first market in the EU for capitals raised by start-ups and 44,000 “Talent Passports” (French Tech Visa scheme) were issued for foreign entrepreneurs in 2022, among them dozens of South African citizens.

Ambitious labour market and tax reforms have led to these advances. Several South African business leaders and companies, such as Aspen, Sibanye-Stillwater and CIBA, have chosen to invest in France. Now all you have to do is follow in their footsteps.

After all, thanks to its geographical position, France is the best gateway to the European market — an integrated market of more than 450-million people, with great infrastructure and freedom of movement for people, goods and capital.

However, you could say that the best way to boost economic growth, create jobs and alleviate poverty in SA is to invest in SA. And you would be right. That’s why you should seriously consider the idea of partnering with a French company here in Mzansi. 

The contributions of French companies to SA are among the most significant in the country, such as the Koeberg nuclear power plant, the only one in Africa, or the Gautrain, which is the most efficient urban rail network in Sub-Saharan Africa. Stellantis is gearing up to produce Peugeot bakkies in Gqeberha, and the first Club Med Beach and Safari resort will open north of Durban by 2026. 

More importantly, French companies are in SA to stay. They care about their employees’ training and are committed to environmental sustainability. They invest in the long run for their own interest but with positive outcomes for South African workers. Airbus’s decision to establish a regional hub in Johannesburg, for instance, will provide tailored support and transfer vital skills to the local industry — and this is just one example of the French commitment to SA. 

Many companies offer similar programmes, training local talent and fostering growth. They also bring key sustainable technologies to SA to the benefit of their local partners. Two of the largest waste management companies in Southern Africa are now French, with Suez having acquired EnviroServ and Séché Group acquiring Interwaste. Both are bringing advanced technologies to manage hazardous waste, and other companies like Danone are leading recycling and waste reduction initiatives.

So wait no longer. Whether you invest in France or partner with French companies thriving in SA, you will not be disappointed. France is the choice of innovation and excellence. And if you still have doubts about joining Team France, talk to Business France SA, the French South African Chamber of Commerce or the economic service of the French Embassy — they are all part of one single team determined to promote French excellence in SA. 

This article was sponsored by the French Embassy in SA.