Cambodia is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Cambodia may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Cambodia exports around $6.78 billion and imports roughly $8.9 billion. 0.2% of population in the country are unemployed. The total number of unemployed people in Cambodia is 32,491. In Cambodia, 17.7% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Cambodia is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 2.1% of GDP. The Gini Index of the country is 37.9. Cambodia is experiencing good equality. The majority of citizens in Cambodia fall within a narrow range of income, although some cases may show significant differences. Cambodia has a Human Development Index (HDI) of 0.584. Cambodia has an upper medium HDI score. This indicates that the majority of citizens will be able to attain a desirable life, though some citizens will not be able to achieve high living standards. The Global Peace Index (GPI) for Cambodia is 2.179. The strength of legal rights index for Cambodia is 11. Overall, it is considered to be rather strong - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders quite well; credit information is abundant and easily accessible.

Currency
The currency of Cambodia is Cambodian riel. The plural form of the word Cambodian riel is riels. The symbol used for this currency is ៛, and it is abbreviated as KHR. The Cambodian riel is divided into Sen; there are 100 in one riel.

Credit rating
The depth of credit information index for Cambodia is 5, which means that information is usually sufficient and quite accessible, although occasionally some necessary details may be lacking. According to the S&P credit-rating agency, Cambodia has a credit rating score of B, and the prospects of this rating are stable. According to the Moody's credit-rating agency, Cambodia has a credit rating score of B2, and the prospects of this rating are stable.

Central bank
The prime lending rate of Cambodia's commercial banks is 12.6. In Cambodia, the institution that manages the state's currency, money supply, and interest rates is called National Bank of Cambodia. Locally, the central bank of Cambodia is called ធនាគារជាតិ នៃ កម្ពុជា. The average deposit interest rate offered by local banks in Cambodia is 1.4%.

Public debt
Cambodia has a government debt of 33.7% of the country's Gross Domestic Product (GDP), as assessed in 2012.

Tax information
The corporate tax in Cambodia is set at 20%. Personal income tax ranges from 0% to 20%, depending on your specific situation and income level. VAT in Cambodia is 10%.

Finances
The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Cambodia is $50161 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Cambodia was last recorded at $3 million. PPP in Cambodia is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Cambodia is 15,250 billion. Based on this statistic, Cambodia is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Cambodia was last recorded at $1 million. The average citizen in Cambodia has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Cambodia averaged 7.2% in 2014. According to this percentage, Cambodia is currently experiencing significant growth.

Multinational companies and governments around the world are increasingly looking to Africa as a new business destination. Africa's economy has grown at a rate of around 5.3% per year over the last decade and six of the world's ten fastest growing economies are located here. These countries have a fast-growing middle class that contributes to rapid urbanization that is increasing faster than their cities' infrastructure can keep up. It is a common misconception that many economies in Africa are heavily dependent on energy production. In reality, the oil and gas sector accounted for only 11% of Nigeria's GDP in 2014, while the construction sector accounted for 20%.

When considering doing business in Africa, it is not a matter of choosing just one country or all 54; A regional approach makes more sense. Sub-Saharan Africa, for example, refers to sub-Saharan countries such as Angola, Kenya, South Africa and Nigeria. Many companies already doing business in Africa are separating their businesses in North Africa and Sub-Saharan Africa due to the stark economic, linguistic and cultural differences between the two regions. Here are our top 5 African countries for doing business:

Mauritius
Mauritius is known for offering an extremely favorable business environment for investment and business growth. The process of incorporating a company and starting new business activities in Mauritius is believed to be straightforward and relatively easy. Mauritius' economy is mainly based on textiles, tourism, sugar and financial services, although recently other sectors such as renewable energy and information technology are expanding rapidly. The World Bank ranked Mauritius 49th in its Doing Business 2017 ranking, largely due to its pro-business approach to dealing with building permits, enforcing contracts and protecting minority investors. Another ranking of African countries places Mauritius first based on factors such as law and security, economy, human development and human rights.

Rwanda
Despite nearly a decade of Rwanda's civil war, the country's leaders and citizens alike have worked to achieve a healthy business climate and a strong overall economy. According to the World Bank, Rwanda is the second easiest place to do business in Africa and ranks 56th in the Doing Business ranking. This is because the procedures for registering a property, obtaining credit and trading across borders have been greatly simplified. Tourism is currently the fastest growing sector in Rwanda. According to our research, businesses can be incorporated and operating in as little as three days.

Botswana
Since gaining independence, Botswana has had one of the fastest per capita economic growth rates in the world. As the government works to diversify the country's profitable industries, the mining of diamonds and other precious metals is currently the main contributor to the country's economy. Recently, Botswana has managed to reduce the time it takes for various processes including import and export and business formation procedures. In addition, technological upgrades have reduced the average court length for commercial disputes to 625 days (from 987 days in 2008). Thanks to these improvements, Botswana ranks 71st in the World Bank's Doing Business 2017 ranking.

South Africa
South Africa's key industries are automobile manufacturing, tourism, mining and information and communication technologies. South Africa has managed to simplify its import and export procedures, resulting in less time and fewer documents required. In addition, the South African authorities have simplified tax legislation, reducing the number of hours required to prepare tax reports. The World Bank ranked South Africa 74th for ease of doing business in 2017.

Kenya
Another country to keep an eye on is Kenya, which is currently making huge investments in sectors such as telecom, transport and energy. With a tech-savvy workforce and high-speed internet, Kenya stands out as one of the top countries in Africa for tech startups, while its diversified economy, strong ownership rights, excellent tourism sector and improving infrastructure make it a great location for general start a new company. If you have further questions about company formation or banking in Africa. Please contact us now.

If you are setting up, doing business, or dealing with partners from that country in South Africa, it is imperative to understand the basics of corporate culture in this particular area. Business meetings and negotiations often start with both parties having unspoken assumptions and certain expectations of their partners. In-depth knowledge of South African business culture can make all the difference between a successful business meeting and a lost business.


Practical advice on business etiquette in South Africa

Below is our list of pieces of advice to keep in mind when dealing with South African partners:


South Africans are unlikely to do business with people they haven't met personally. It is advisable to have a friend introduce you in order to build successful business relationships. If possible, try to draw the partner's attention to South African business references that you already have in your portfolio.

It is highly recommended that you receive letters of recommendation in case you have done business with mutual contacts of the company or entrepreneur with whom you wish to develop a relationship.

Most of the time, a first business meeting is more about personal contact and getting to know one another than a direct discussion of business issues. The chances that South Africans will do business with you are much higher if they trust you as a person.

Keep in mind that almost everything is closed from mid-December to mid-January, as well as during the Easter and most Jewish holidays. Therefore, do not plan your business trips and meetings on these dates.

Working hours in South Africa are almost the same as in Western countries, including the fact that most of South African companies are closed during weekends. Major exceptions are banks and state office employees, because banks and state authorities are often open in until noon on Saturdays.

You may face quite a challenge to locate a certain address in South Africa. This may happen because of the way in which the address system works. In case you are driving to a meeting with clients/partners, you better leave early to make sure you have some extra time to find your destination address and to park your car safely. We would recommend taking a cab rather than driving yourself.

Remember that acceptable business clothes are suits and ties. Shirts preferably in light colours. If you aren’t wearing a jacket, make sure to put on a long sleeved-shirt. In case you are invited to a dinner at someone’s house, a dinner jacket is normally expected. It is advised for women to put on dresses and skirts instead of pantsuits and the former should not be sleeveless, too tight, or very short, as it is considered a bad taste. Keep in mind that winter in South Africa starts in June and lasts until August, so do not forget to dress something warm in case you are visiting during these months.

Most locals speak English quite well, therefore, it is not required for you to translate documents or materials into any of the African languages.


South Africans are quite friendly and open, meaning they often express emotions openly. It is a quite common situation when your business partner slaps you on the shoulder, shakes your hand tight, or even holds your hand as a gesture of trust and friendship.

It is considered polite to offer small gifts to your partners. If you are invited to a house for dinner, do not forget to bring some gift: a box of chocolate, wine, or something similar – it is considered a good gesture and it shows respect for the hosts.

Always show respect to elders, even in situations when they are not actually a part of the company. Elders are widely respected and usually considered to be extremely wise and experienced; those who disrespect elders openly are often end up being classified as undesirable business partners.

Speaking of table etiquette and cutlery, the knife should always be kept in the right hand and the fork in left — never switch hands and never wave your hands around while holding cutlery. It is also considered a minor insult to leave food uneaten – so it is advised to plan prior to ordering dishes. Smoking is generally accepted, but only after all the guests has finished their food. Never chat or talk with waiters during the meal.

It is generally considered impolite to point your finger at anyone, also the V for victory gesture is considered offensive. Remember not have a dialogue while having hands in your pockets.

With the right documentation and initial expenses, it is possible for a foreign citizen to open a bank account in South Africa. This international account and investment opportunity offers several advantages based on economic regulations and tax structures. Interest rates, tax laws and fees vary depending on the country in which you invest; Careful research and strategic financial actions could result in significant portfolio growth.

Legal structures in South Africa
Each international jurisdiction adheres to different legal structures for taxation and banking. Confidus Solutions helps you understand the nuances of each country's legal structure. In order to do business in South Africa, it is crucial that you have a thorough understanding of the financial and legal ramifications.

Initial investments
The vast majority of bank accounts in South Africa require an initial financial outlay to secure the account opening. This value differs from bank to bank and also depends on variable exchange rates. An international financial expert will help navigate these conversions, as well as the various fees and minimums associated with maintaining a bank account. Make sure you understand the interest and growth rates associated with each prospective international bank account so you can maximize your returns while minimizing risk.

Tax structures in South Africa
To get the best results and avoid bureaucratic and legal pitfalls, enlist the support of an expert in international finance and economics. This initial investment in proper processes and research will help avoid a litany of long-term costs and fees related to unforeseen errors and legal errors. Language skills, financial know-how and bureaucratic experience ensure that your account opening is processed smoothly and without unintended consequences.