Just cause 2 hosts, in your opinion, don't cut it for you, doesn't mean local hosting as a whole is bad. I don't know of any big (and serious) company who still hosts internationally. The latency and different timezone (for support / billing queries) as well as the foreign languages makes it rather difficult for most people in S.A. to operate a proper business. I can't imagine Pick `n Pay (or any company with an online presence) telling me, when trying to buy something "Sorry Sir, our payment gateway is offline till 6PM, when the USA company wakes up to fix a problem on their side...."
BUT, if you buy something cheap, don't expect something of great value! i.e. if you need uptime, spend money on a good solution. Many, if not most, USA / UK / EU / etc / etc hosting companies have had downtime in the past as well. DDOS attacks are not limited to S.A. only. Nor hardware and software brakedowns.
P.S. I'm not defending Elitehost at all. Have no connection to them whatsoever. But it piss me off when people generalize like this.