South Africa
Country project by: Brittany Morris
History South Africa was settled by the Dutch in 1652 as a stopping point for ships on their way to the East Indies. Fruit and vegetables were grown here to battle the problem of scurvy aboard passing ships. The Dutch first settled the area that was to become Cape Town and with time expanded across the entire tip of southern Africa. After the Napoleonic wars in 1815, South Africa changed and became a British colony. Many of the Dutch had went north to get away from the English. Here they encountered tribes that, over time, had moved south from central Africa. There ensued a period of war between the Dutch Boers and the Zulus, a powerful tribe led by Shaka. The Boers eventually won and created an Afrikaner state in the north. In 1899 there were the Boer Wars as a result of the English trying to annex this Afrikaner state. In 1910 South Africa became a union, a coalition between the English and Afrikaner states. In 1960 South Africa gained independence from British rule and became a republic. This period was to be very difficult time for many people since Apartheid was fully enforced even though it had started in 1948. During the 90’s, with the release of Nelson Mandela (who eventually became president) and the abolition of the Apartheid laws, South Africa went through an amazing transformation and became democratic. South Africa has journeyed through great obstacles of race, economic ups and downs, and has become a nation whose dream of unity and common purpose is still in process today.
Population 55,382,395
Province Population % of total
Ethnicities and % of them African 79.2% White 8.9% Colored 8.9% Indian/ Asian 2.5% Other
0.5%
Adult Literacy 93.73% Median age of females and males
Eastern Cape 12.7% Free State 5.3% Gauteng 23.7% KwaZulu-Natal 19.8% Limpopo 10.4% Mpumalanga 7.8% Northern Cape 2.2% North West 6.8% Western Cape 11.3%
The median age in south africa is 25.9 years.
Religion -
Islam is the religion of 1.5% of South Africans, Hinduism that of 1.2%, African traditional belief 0.3%, Judaism 0.2% and other beliefs 0.6%. In terms of population groups, Christianity is most common among white and coloured South Africans, being the faith of 86.8% of the people in both groups.
Demographic and other indicators towards the population HIV- In 2012 it was estimated that the HIV rate for 2012 was at 12,2,%. That number luckily has gone down for the year of 2015, an estimated 11,2% of the total population is HIV positive that is a total number of 6,19 million people. Approximately one-fifth of South African women in their reproductive ages are HIV positive. For adults aged 15–49 years, an estimated 16,6% of the population is HIV positive Migration- migration is an important demographic process in shaping structure and distribution of the provincial population. High levels of migration can cause problems such as increasing unemployment and potential ethnic strife (if people are coming in) or a reduction in the labor force, (if people are leaving). For the period 2011–2016 it is estimated that approximately 243, 118 people will migrate from the Eastern Cape; Limpopo is estimated to experience an out-migration of nearly 303,151 people. During the same period, Gauteng and Western Cape are estimated to experience an inflow of migrants of approximately 169, 837 and 350, 569 respectively Life expectancy at birth for 2015 is estimated at 60,6 years for males and 64,3 years for females. The infant mortality rate for 2015 is estimated at 34,4 per 1 000 live births.
Capital City
Languages
Pretoria (administrative capital)
The Total Land Area 63.6 %
Afrikaans 13.5% English 9.6% IsiNdebele 2.1% IsiXhosa 16% IsiZulu 22.7% Sepedi 9.1% Sesotho 7.6% Setswana 8% Sign language 0.5% SiSwati 2.5% Tshivenda 2.4% Xitsonga 4.5% other 1.6%
is 1,213,662 Km2 (468,597 sq. miles)
of the population is urban (35,151,862) in 2016
Drinking Age
Voting Age
18
18
Age of Consent 16
The Republic of South Africa is a constitutional democracy with a three-tier system of government. Background history:the National Party led by J.B.M. Hertzog (Nazi sympathizer) in 1914 who in two terms sought to further emancipate South Africa from British imperial control and to provide greater “protection” for the whites from the black Africans and for the Afrikaners from the British) gained power in South Africa in 1948. It consisted of an all-white government that had enforced policies of racial segregation under a system of legislation that it called apartheid. Under apartheid, nonwhite South Africans (a majority of the population) had been forced to live in separate areas from whites and use separate public facilities, and contact between the two groups would be limited. Despite strong and consistent opposition of the people within and outside South Apartheid laws remained in effect for 50 years. In 1994, with the end of Apartheid and the election of a new Government, a new interim Constitution was introduced. The interim Constitution introduced non-racial democracy and represented all men and women of all races on equal terms. Parliament was reconstituted to consist of a Senate and a National Assembly. Parliaments duties is to promote the values of human dignity, non-racialism, equality, the supremacy of the Constitution, non-sexism, multi-party democracy and universal adult suffrage. The Parliament promulgates legislation that prohibits unfair discrimination, upholds citizens’ political rights and the basic values and principles governing public administration, and oversees the implementation of constitutional imperatives. It also facilitates public involvement in legislative and other processes as it has the responsibility to promote the principle of co-operative government and intergovernmental relations. It is required, by the Constitution, to assist and protect the courts and state institutions, to ensure fairness, dignity, independence, accessibility and the effectiveness of these.
Government break down
The Constitution- mandates that each of the three tiers of government - national, provincial and local is “distinctive”, with a legislative and executive authority of its own. Three levels of government: national, provincial and local (municipal). National government-three separate spheres: law-making (legislative authority), the actual work of governing (executive authority) and the courts (judicial authority). Pretoria( executive capital)-where the Union Buildings house the seat of government and the offices of the president. Bloemfontein ( judicial capital)-home of the Supreme Court of Appeal. Cape Town (legislative capital)-where the Houses of Parliament draft, vote and pass the laws of the country. The two houses of Parliament National Assembly - creates law for the country as a whole National Council of Provinces- ensures those laws will meet the different needs of each province. The presidency and the cabinet President is elected by the National Assembly. He is the executive head of state and leads the Cabinet. The president may not serve more than two five-year terms in office. he Cabinet is made up of the president, the deputy president, and ministers and deputy ministers of national departments. The president appoints Cabinet members, assigns their powers and functions, and may dismiss them. Provincial government All nine provinces has its own legislature, with 30 to 80 members elected according to proportional representation. The legislature in turn elects one of its members as premier, head of the provincial government. Provinces also have exclusive powers over a number of areas, including abattoirs, ambulance services, liquor licenses, local museums, culture and recreation, and provincial roads and traffic. Local government: municipalities municipalities is the local government in South Africa administers cities and smaller regions. There are three categories of municipality. (Metropolitan municipalities) govern the major city regions. (District municipalities)- wider areas outside the cities, like counties in the US and UK. (Local municipalities)
Government & POLITICAL STABILITY
PRESIDENT Jacob Zuma 2009-
NELSON MANDELA CHAMPION OF FREEDOM
After 27 years in prison Nelson Mandela was freed in 1990 and negotiated the end of apartheid in south africa bringing peace to a racially divided country and leading the ffiight for human rights around the world. HE WAS ALSO AFRICAS FIRST BLACK PRESIDENT (1918-2003)
Economic Overview
GDP-US$ 353 billion (2015 estimate) Industrial Production Rate - 2.0% Labor Force- 53% Unemployment Rate- 25.1% Currency South African Rand (1 US dollar buys 15.22 South African
Rands. Against the dollar,)
Budget Revenue- $ 141611 ZAR Million Budget Expenditures- 111665 ZAR Million Budget Deficit-3.90% Taxes 25.5% of GDP Export rate-5.1% Main Crops- corn, wheat, sugarcane, fruits, vegetables; beef, poultry,
mutton, wool, dairy products.
Main Industries- mining (world’s largest producer of platinum,
gold, chromium), automobile assembly, metalworking, machinery, tex tile, iron and steel, chemical, fertilizer, foodstuffs.
Natural Resources-Gold, chromium, antimony, coal, iron ore,
manganese, nickel, phosphates, tin, uranium, gem diamonds, platinum, copper, vanadium, salt, natural gas.
Socio Economic Stablility In recent months it seems that economic issues has really been swarming this country. Some sources say that is is because there is still racial inequality which may be a risk that is effecting the economy. While South Africa’s black middle class has grown since the end of apartheid in 1994, in 2008 White per capita income in was about $9,400, compared with $1,220 for blacks, according to the South African Institute of Race Relations. Today, blacks on average still earn six times less than whites, according to the statistics agency. Persistent racial inequality and racism can also shatter South Africa’s stability as well as its economic growth. Reports of racism have increased at universities, schools, parking lots, restaurants ,office blocks, and on Facebook and Twitter, according to the South African Human Rights Commission. There have been reports of a Pretoria school segregating classes based on race; an office building in Limpopo province with a whites-only toilet. South Africa has become more divided as the economy has failed to deliver the growth and jobs required to bring greater financial equality. The report from a survey has showed that the racial inequality is starting with the youth with whites (at 61%) and Indians (at 58%) attained employment in the private sector, while only 35% of Africans and 45% of colored graduates were able to attain employment in the private sector. And this is the reason that unemployment is so low that more than 10 million people are unemployed and half of them are between the ages of 15 and 24. It got so bad that South Africa had to make the Employment Equity Act , If it wasn't for this act records show that the unemployment rate for colored and African people would be significantly larger, this act ensure employment of a large number of African (at 42%) and colored (at 45%) graduates. South Africa is projected to have the 8th highest unemployment rate in the world in 2015, according to a new report issued by the International Labour Organization (ILO). Depressingly, the report forecasts that the situation is not expected to change for the next five years. Another problem is the cost of living and living environments , in the past year, the South African currency, the rand, has lost 20% of its value, largely due to the withdrawal of stimulus in the US. This effect has pushed up the price of goods, and South Africans are now paying much more for food, housing and transport. If the situation worsens the Reserve Bank will have to make interest rates go up in order to support the currency. In turn consumer spending will slow down. Another problem is that fewer than 20 municipalities out of 284 have a clean balance sheet which has resulted in failure to provide water, electricity, housing and schooling in many areas. A report by South Africa’s Statistician General found that 94 percent of white children have access to piped water in their home, whereas only 27 percent of black children do. In recent years, that has spurred on hundreds of service delivery protests in townships, where the poor, black masses live, and where most of the country's unemployed population are likely to be found.The government’s concern is that unless solutions are found, a generation of young people who are agitated, jobless and in despair could lead to an democratic uprisings to arise independently across South Africa in the future. But despite all the bad 3 million houses have been built for the poor to put a lead in a good new direction.
State Of the Apparel and Textile Industry Since 1994 1 billion dollars has been spent on building and modernizing SA’s textile, clothing and footwear industry so that it is efficiently ready to compete internationally. The local textile and clothing industry has grown accordingly to offer the full range of services, from natural and synthetic fibre production to non wovens, spinning, weaving, tufting, knitting dyeing and finishing. Technological developments has made local textile production evolve into a capital-intensive industry, producing synthetic fibers in increasing proportions. Even though businesses booming in SA the industry is still relatively small compared to china and the U.S.A it has some impressive results in the world markets. Achievements •Local yarn manufacturer Sans Fibres supplies 80% of the sewing thread used in the world's apparel sewing operations. •Local fabric mill Gelvenor Textiles supplies more than 50% of the world's demand for parachute fabrics. •Local suit manufacturer House of Monatic has delivered its one millionth suit to the UK market. South Africa has trade agreements with the European Union and the United States which give it an 17.5% duty advantage. In the case of the US, textile exports have increased by 62% since the advent of the Africa Growth and Opportunity Act (Agoa). South Africa has preferential access to the Southern African Development Community (SADC) region, thanks to the SADC Free Trade Agreement, that went into full operation in 2008. This means producers and consumers pay no import tariffs on about 85% of all trade goods between the 11 countries. Competitive Advantages labour costs and Ready availability of natural fibre raw materials. Cotton South Africa produces in the region of 40,000 tons of cotton a year , providing the potential for the local cotton pipeline to become increasingly export-oriented. Cotton fibers and yarn can also be imported from the SADC region to supplement production for Agoa (African Growth and Opportunity Act) purposes. Leather When it comes to leather because South Africa is home to so many raw materials needed to produce any type of footwear, from low end to high end. Bovine, ostrich, Nile crocodile, game leather, textile PVC (plastic) and PU (i-cast leather) synthetic raw materials just to name a few can all be sourced locally without difficulty. Vegetable fibres SA is successfully growing and processing natural fibers such as flax and hemp. Even though this is for the textile sector it was also produced in response to an increasing demand of the automotive and aeronautics industries for environmentally friendly body parts. Wool and Mohair South Africa is the world's largest mohair producer and the fifth largest producer of wool. gional African manufacturers and keeps growing. This good because they are looking for a quicker route to market and the freedom to order smaller quantities of merchandise, which saves on inventory costs and offers greater flexibility.
There is not much to say about South Africa’s Textile and apparel industry because as I have said before its still growing. Even though South Africa is known for raw materials; according to manufacturers and retailers the domestic textile industry is burdened with high labour costs, low productivity and crippling tariffs of 22% on imported fabrics even though they are apart of SADC. The South African industry has also failed to keep pace with the technological developments seen in its Chinese counterparts, resulting in comparatively poor efficiency.Chinese products are also seen as a good choice for consumers, especially South Africa's large number of low-income earners seeing as the rand value has weakened. According to a local industry association in SA (Cape Clothing Association) China's share of clothing imports in South Africa was 67% by value and 81% by volume in 2013 when the rand was stronger. Now, the next largest source of imported clothing in South Africa was Mauritius, whose share of clothing goods was just 9% by value. Another obstacle is that the Chinese clothing manufacturing sector is also dominant in SA. There is only a few manufacturers left in South Africa that is domestic leaving local retailers with no choice other than to source from abroad, especially from China because of cheap prices on legal and illegal imports. However, recently local manufacturing had been picking up again, because local suppliers can achieve quicker turnaround times in the supply chain in South Africa. Retailers of SA feel they can beat Asian suppliers on speed to market if the number of South African retailers who are now looking to buy, buy from regional African manufacturers and keeps growing. This good because they are looking for a quicker route to market and the freedom to order smaller quantities of merchandise, which saves on inventory costs and offers greater flexibility. Another factor that makes South Africa’s textile industry so unique is that some of there textiles are hand made South Africa is the home of a lot of textile artisans
Country transportation South Africa has a modern and well-developed transport infrastructure. The air and rail networks are the largest on the continent, and the roads are in good condition. The country's ports provide a natural stopover for shipping to and from Europe, the Americas, Asia, Australia and both coasts of Africa. The transport sector has been highlighted by the government as a key contributor to South Africa's competitiveness in global markets. It is regarded as a crucial engine for economic growth and social development, and the government has unveiled plans to spend billions of rands to keep building the country's roads, railways and ports.
Ports and shipping
Approximately 96% of the country's exports are conveyed by sea, and the eight commercial ports are the channels for trade between South Africa and its southern African partners as well as the center for traffic to and from Europe, Asia, the Americas and the east and west coasts of Africa. The commercial ports are: Richards Bay and Durban in KwaZulu-Natal; East London, Port Elizabeth and the Port of Ngqura in the Eastern Cape; and Mossel Bay, Cape Town and Saldanha in the Western Cape.The state-owned Transnet National Ports Authority (NPA) manages the ports, while Transnet Port Terminals, formerly known as SAPO, is responsible for managing port and cargo terminal operations. The Port of Ngqura was completed in 2006. Developed off the coast from Port Elizabeth in the Eastern Cape, Nqura is the deepest container terminal in Africa, and is a key part of Coega, one of the country's strategic industrial development zones (IDZs). Durban is Africa's busiest port and the largest container facility in southern Africa, while Richard's Bay is the world's largest bulk coal terminal. Located between these two ports is the Dube Trade Port. Launched in March 2012, the port includes King Shaka International Airport. Operated by the Dube Trade Port Corporation, a state-owned company, the port includes a cargo terminal, trade zone, agrizone and IT and telecommunications platform. The old Durban International Airport will be turned into a multibillion-rand dug-out port by Transnet. Expected to be ready by 2019, development plans include the creation of an automotive component supplier park around the port.
Roads
South Africa's total road network is about 747 000km, the longest network of roads of any African country. The drive from Musina on South Africa's northern border to Cape Town in the south is a 2 000km journey on well-maintained roads. While the Department of Transport is responsible for overall policy, road-building and maintenance is the responsibility of the South African National Roads Agency (Sanral) as well as the nine provinces and local governments. Sanral is responsible for the country's network of national roads, which cover around 16 200km. There are about 185 000km of provincial roads, and the municipal network totals around 66 000km, according to the SA Institute of Civil Engineering. Around 19% of the national roads are toll roads, most of which are maintained by Sanral, while the rest have been concessioned to private companies to develop, operate and maintain. A multi-billion rand freeway improvement scheme has significantly eased congestion on the roads in Gauteng, the country's busiest province. S’hamba Sonke (“walking together”) is a labour-intensive road maintenance program, with projects run by the provinces to upgrade and repair roads in rural areas.
Railways
South Africa has an extensive rail network it is the 14th longest in the world . The country's rail infrastructure, which connects the ports with the rest of South Africa, represents about 80% of Africa's total. Improving the country’s 20 247km rail network is a top government priority, with projects aiming to increase freight rail volumes and increase market share of container traffic. The rail network is managed by the Department of Public Enterprises via Transnet. Transnet Freight Rail is the largest railroad and heavy hauler in southern Africa, with about 21 000km of rail network, of which about 1 500km are heavy haul lines. Just over 8 200km of the lines are electrified. Passenger rail is also being completely overhauled, with a 20-year fleet renewal program in place to buy more than 7 200 new trains. Managed and implemented by the Passenger Rail Agency of South Africa (Prasa), the focus is on revitalizing the local industry through local manufacturing of components. The existing rail network will be upgraded to take advantage of the new coaches’ technological features. Around 2.2-million people travel by train every day in South Africa. Metro-rail commuter services can be found in Cape Town, the Eastern Cape Province, Durban, and greater Johannesburg and Pretoria, focusing mainly on poorer South Africans. Tourists and well-heeled passengers can travel on the Blue Train, one of the world's most famous luxury trains, while Shosholoza Meyl transports passengers between the country's major cities. The Gautrain, Africa’s only high-speed train, was opened just days before the start of the World Cup in 2010. Servicing Johannesburg, Pretoria and OR Tambo International Airport, it is supported by a network of feeder buses. About 40 000 people use the service every day. The Gautrain can travel at speeds of 160 km/h, enabling commuters to make the trip from Johannesburg to Pretoria in less than 40 minutes.
Airports and airlines South Africa's 10 airports handle more than 98% of the country's commercial traffic, with 200, 000 aircraft landings and 10-million departing passengers annually. State-owned Airports Company of South Africa (ACSA) is responsible for managing the country's airports and improving productivity of its airports. Other airports include Lanseria (Midrand), Gateway (Polokwane), Nelspruit and Kruger (Mpumalanga). In 2012, South African Airways (SAA) was voted the best airline in Africa for the 10th year in a row by UK global aviation research organisation Skytrax. South African Airways (SAA) is by far the largest air carrier in Africa, with connections to more than 28 cities across the continent. As a Star Alliance member, SAA also offers its customers 1 356 destinations in 193 countries and 21 500 flights daily.
Main Suppliers
Global Garments Co. (Pty) Ltd.
Franz Falke Textiles Pty, Ltd. Top products-falke (tights, socks etc.), socks,hosiery Customers Balega International Llc, Implus Footcare Llc, One Pampered Sole Llc Phone +27 21 951 2137 Address T/A Falke Eurosocks,, Cnr Oop Fabriek Street,, Bellville South, South Africa
Phone +266 2231 2544 Address Thetsane Industrial Area, Maseru, Lesotho Country Lesotho Top products-jeans,boys woven, woven, jeans, woven garments, boys woven jeans Customers- The Children’s Place Services Co., Levi Strauss & Co., Dress Barn Inc., Old Navy (Canada) Inc.,The Gap Inc., Denim Group Ltd.
Expeditors International Durban (Dur)
Tzicc Clothing Manufactureres (Pty) L
Phone +27 31 902 8061 +266 2231 2196 +27 31 902 8041 +44 117 982 5778 Address 47 Jeffels Rd Prospecton Durban 27 Country Lesotho Top products-knit,cotton,polyester,mens, pants Customers-Expeditors International Expeditors International De Mexico, Sa De Cv
Phone +266 2232 6159 Address Mohlomi Rd Industrial Area Maseru West Lesotho Country Lesotho Top products-knit, spandex, pants, lady knit, knit pants Customers- JC Penney PurchasingCorp., The Cato Corporation, Wal Mart Stores, Inc., BonWorth, Inc.
Sans Fibres (PTY) LTD. Phone+266 2231 2196 Country Lesotho Top products- yarn ,ispm yarn cif, nylon yarn, high tenacity,thread Customers-Sans Fibers Inc. Marionette Co. Inc. Silk Road Textiles Brawer Bros. Inc. Brawer Brothers
Mediterranean Shipping Company Contact information: Mediterranean Shipping Company (Pty) Ltd., MSC HOUSE, 54 Dr Langalibalele Dube Street, 4001 DURBAN South Africa Lead time (New York): 28 days Price (40’ container): $3,041.90 (USD) Lead time (Savannah, GA): 31 days Price (40’ Container): $ 3, 458. 05 (USD)
SHIPPING RESOURCES
Rennies Ships Agency
Millweed House 196-173 Maydon Road Maydon Wharf Durban 4001 Tel: +27 31 328 0400 Lead time (NewYork): 27 DAYS Price (40’ Container): $3,458 (USD) Leadtime(Savannah): 25 DAYS Price (40’ container): $3,406 (USD)
Diamond Shipping Services
2nd Floor, Building A, Upper Grayston Office Park, 150 Linden Street, Johannesburg, South Africa Tel : +27 11 2638500 Fax : +27 11 2638525 Contact : Sriram Murali Lead time (New York) 28 days Price (40’Container) : $ 3, 523.71 (USD) Lead time (savannah): 22 days Price ( 40’ container): 3,614,11 (USD)
Trade Agreements
Type of Agreement Countries Involved Main Objective/Terms Products Involved Customs Union (in order)
Non-reciprocal Trade Arrangement
Generalized System of Preferences (GSP)
Unilateral preferences granted under the enabling clause of the WTO that are not contractually binding upon the benefactors Offered to South Africa as developing country by the EU, Norway, Switzerland, Russia, Turkey, the US, Canada and Japan Products from developing countries qualify for preferential market access Specified industrial and agricultural products
Southern African Development Community (SADC) FTA
Free Trade Agreement Between 12 SADC Member States A FTA, with 85% duty-free trade achieved in 2008. The 15% of trade, constituting the “sensitive list”, is expected to be liberalised from 2009 to 2012 SADC attains the status of a fully-fledged FTA with almost all tariff lines traded duty free. Most products
Africa Growth and Opportunity Act (AGOA)
Unilateral assistance measure Granted by the US to 39 Sub-Saharan African (SSA) countries Preferential access to the US market through lower tariffs or no tariffs on some products Duty free access to the US market under the combined AGOA/GSP programme stands at approximately 7,000 product tariff lines.
Southern African Customs Union (SACU)
Customs Union South Africa, Botswana, Lesotho, Namibia and Swaziland Duty free movement of goods with a common external tariff on goods entering any of the countries from outside the SACU All products
Trade, Development and Cooperation Agreement (TDCA)
Free Trade Agreement South Africa and the European Union (EU) The EU offered to liberalise 95% of its duties on South African originating products by 2010. In turn, by 2012, South Africa offered to liberalise 86% of its duties on EU originating products. There is currently a review of the agreement underway, which is aimed at broadening the scope of product coverage. This is taking place under the auspices of the Economic Partnership Agreement (EPA) negotiations between SADC and the EU
Business Etiquette and Protocol when Conducting Business
Dress Etiquette
Even though business attire is becoming more informal in many companies, for the first meeting, it is best to dress more conservatively. Men should wear dark colored conservative business suits. Shirts are usually light in color. If you are not wearing a jacket, be sure to wear a long sleeved-shirt. If you are invited to dinner at someone’s home, a dinner jacket is usually expected. It is preferable for women to wear dresses and skirts rather than pantsuits and the former should not be sleeveless, too tight, or very short.
Relationships and Respect
South Africans are transactional and do not need to establish long-standing personal relationships before conducting business. Afrikaners and black South Africans may take relationship building even more seriously and often expect to establish strong bonds prior to closing any deals. Since South Africans may initially be very cautious when dealing with foreigners, gaining their trust and establishing good will is going to take time. It is very important for you to emphasize frequently the long-term benefits and your commitment to the business relationship you are seeking to build. Business relationships in this country exist both at the individual and at the company level. If is so happens your company replaces you with someone else over the course of a negotiation, it may be easy for your replacement to take things over from where you left them. Likewise, if you introduce someone else from your company into an existing business relationship, that person may quickly be accepted as a valid business partner. Most South Africans, regardless of ethnicity, prefer face-to-face meetings to more impersonal communication mediums such as email, letter, or telephone.
Conventions and rules regarding race and color can be very strict
It is usually best to follow the lead of your host concerning these matters. Though Whites, particularly Afrikaners, sometimes retain a paternal or caretaker attitude toward blacks, you will rarely hear openly racist comments. When dealing with black businesspeople, try to show understanding and sensitivity toward the fact that this group long represented an oppressed majority. In addition, remember that South African blacks felt betrayed by most of the western world at some point. In South Africa’s business culture, the respect a person enjoys may depend strongly on his or her education. People of British decent highly respect status and rank, while others may be more impressed with personal knowledge and accomplishments.
Communication
English is widely spoken, it is only one of eleven official languages of the country. Most white South Africans are bilingual, speaking English and Afrikaans, which is closely related to Dutch. Blacks speak their own native tongue and may have a working knowledge of Afrikaans and English. While most South Africans avoid confrontation, but levels of directness may vary greatly. Afrikaners are often much more direct and may be very blunt. They do not find it difficult to say ‘no’ if they dislike a request or proposal. Afrikaners value straightforwardness and honesty much more highly than tact or diplomacy. They dislike vague statements and openly share opinions, concerns, and feelings with others. British South Africans are often somewhat vague and can be hard to read. While you may occasionally get a direct ‘no,’ evasive responses like ‘I’ll get back to you’ could indicate a lack of interest in what you have to offer. Black South Africans, on the other hand, can be more indirect than the other groups. Instead of ‘no,’ they may give seemingly ambiguous answers such as ‘I am not sure,’ ‘we will think about it,’ or ‘this will require further investigation.’ Each of these could mean ‘no,’ as does a ‘yes’ that sounds hesitant or weak. Alternatively, a respondent may deliberately ignore your question. With Blacks, extended silence likely communicates a negative message. Gestures are usually subtle, especially among British South Africans. Physical contact is rare among Whites but can be frequent among Blacks. However, never touch someone’s head, not even that of a child. and do not use your fingers to point at others. Instead, point with your head. Eye contact should be frequent as this conveys sincerity.
Initial Contacts and Meetings
Scheduling meetings in advance is required. However, you can sometimes schedule a meeting on short notice if the parties had previous business interactions. Since South Africans want to know whom they will be meeting, provide details on titles, positions, and responsibilities of attendees ahead of time. Agreeing on an agenda upfront can also be useful. because that agenda will usually be followed. While meetings may not start on time, South Africans generally expect foreign visitors to be punctual. Avoid being more than 5 to 10 minutes late, even though Black South Africans may be less concerned with time displaying anger if you have to wait or on your lateness reflects poorly on you. Names are usually given in the order of first name, family name. Use Mr./Mrs./Miss plus the family name. If a person has an academic title, use it instead, followed by the family name. Introductions are accompanied by firm handshakes but men should always wait for women to initiate handshakes. The exchange of business cards is not an essential step, but it is best to bring a sufficient supply. They may sometimes be exchanged at the end rather than the beginning of the meeting. Having your card printed in English is usually sufficient. Show doctorate degrees on your card and make sure that it clearly states your professional title, especially if you have the seniority to make decisions. Offer your card to everyone that is presented in the meeting. If someone does not give you his or her card, this may signal that the person does not want to do business with you. When presenting your card, smile and keep eye contact, then take a few moments to look at the card you received if given one. Keep your presentation short and to the point.
Pace of Negotiation
Traditional companies may be very slow, spending considerable time gathering information, bar- gaining, and making decisions. Attempts to accelerate the process may be counterproductive, so be patient, and allow plenty of time. On the other hand, South Africans can be decisive and quick on their feet, so you may be able to finish the negotiation in a short time span once you have managed to win their trust. Bargaining Prices may only move by about 20 or 30 percent or so between initial offer and final agreement. While Afrikaners are not overly fond of bargaining and dislike haggling, they can be quite good at both. Of all cultural groups in the country, Blacks may be most fond of both bargaining and haggling. When negotiating with someone from this group, be prepared that prices may move by 40 percent or more. Opening with an extreme offer may be viewed as ungentlemanly or even childish. Agreements and Contracts Handshakes and verbal agreements may be considered binding, especially among Blacks. Verify agreement repeatedly since there is always a risk of misunderstandings, but remain flexible and do not insist that everything be put in writing. Keep your commitments, whether made orally or in writing is a big indicator on whether or not a foreign company that people consider a ‘deal breaker’ will find it very difficult to continue doing business in the country. Signing the contract is often only a formality. South Africans believe that the primary strength of an agreement lies in the partners’ commitment rather than in its written documentation.
Women in Business
South Africa is a very male-dominated society. Although South Africa is known to have equal rights, women may be considered inferior and still have a hard time getting working positions of similar income and authority as men. As a visiting businesswoman, it may help a little if you emphasize your company’s importance and your role in it. However, you will still have to work hard to gain personal respect. Compliments about appearance and remarks with sexual connotation may represent little more than attempts to test your confidence. It is important to be gracious and act professionally in business and social situations. Displaying confidence and an appropriate deal of assertiveness is very important, since South Africans admire people who are tough, confident, and capable without being overly aggressive.
Risks and benefits Weaknesses
• • • •
Poverty, inequalities, sources of social risks (crime, demonstrations) High level of unemployment and shortages of skilled labour Infrastructure shortcomings (transport, energy) Dependence on volatile foreign capital flows
Even though South Africa is a beautiful country I would think twice about doing business here. The poverty and unemployment level is extremely low and is said to continue to be low for the next five years. There is also a high level of unskilled labour works because of so much poverty and unemployment no one is working so no one is really learning how to do the the trade to make money for their work. Also finding out information about the inequalities has also determined my reasoning for not wanting to work here seeing as a little inequality is in every country it seems in South Africa it is very deep routed and everything else including fair wages and the economy is being affected by it. Infrastructure shortcomings for a business to strive technology must be fast customers want their products when they are expected to receive them, that is a big indicator on whether or not they would want to buy something with that company again. Last but not least because SA value of the dollar is so up and down their economy right now can not with stand on its own and work properly it needs assistants from other companies imports to make money.
Strengths
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Economic and political power Natural resources (gold, platinum, coal, chromium, etc.) Developed services sector (in particular financial) Legal system provides protection for investors
The number one good thing about South Africa Is that they are putting so much money in building their textile, clothing and footwear industry. One classification that would make me want to have my products manufactured and produced in South Africa is they have a substantial amount of raw materials. Since my company is sustainable and SA is a big supplier of cotton that would be a help to my business because not only do we use soy beans organic cotton is also added into the finishing process also. Another good thing about South Africa is hand-made Textiles if me and my company wanted to add some texture to our bedding more than likely we would get it from here.
Indicators To Keep In Mind High-quality tap (faucet) water is available in South Africa's urban areas, but not all water in rural areas is safe to drink straight from the tap. In some areas, the water is mineral-rich, and you may experience a bit of gastric distress for a day or two until you get used to it. Bottled mineral water, both sparkling and still, is readily available in most places. Drinking water straight from rivers and streams could put you at risk of waterborne diseases – especially downstream of human settlements. The water in mountain streams, however, is usually pure and wonderful. In the Cape, particularly, the water contains humic acid, which stains it the color of diluted Coca-Cola – this is absolutely harmless, and the water is wonderful. You may also find this coloring in tap water in some areas. It The responsibility to provide clean water rests with local water services authorities, which regularly monitor the quality of drinking water. They are rated by the Department of Water Affairs according to the Blue Drop Certification System.
Travel Requirements Tourist Visa Required no Business Visa Required no
Recommended Vaccines
Shipping Details
• Hepatitis A • Hepatitis B • Malaria • Rabies • Routine Shots • Typhoid
In case of export by sea or air, the exporter must submit the 'Shipping Bill', and in case of export by road he must submit 'Bill of Export' in the prescribed form containing the prescribed details such as the name of the exporter, consignee, invoice number, details of packing, description of goods, quantity, FOB value, etc. Along with the Shipping Bill, other documents such as copy of packing list, invoices, export contract, letter of credit, etc. are also to be submitted.
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