Transcript Doing Business in South Africa

South Africa in the 21st Century:
Business or Monkey Business?
Lucie M. Newcomb
Global Software & Services Marketing
The Global LightWorks Foundation
[email protected]
October 2004
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Just the Facts
Population:43,586,200 (2003)
Provinces: 9
Languages:11 official languages,
including Afrikaans, English,
Ndebele,
Pedi, Sotho, Swazi, Tsonga, Tswana,
Venda, Xhosa and Zulu
Area:1,219,912 sq km
GDP:$427.7 bil
Currency: Rand (ZAR)
(c) Lucie Newcomb 2004
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Running the Numbers: Export & Import YTD*
Food and Live Animals
71.68
71.18
Beverages and Tobacco
12.96
24.89
Crude Materials, Inedible, No Fuels
33.41
209.37
Mineral Fuels, Lubricants & Matls
47.85
Animal/ Veg Oils, Fats & Waxes
4.52
30.93
0.45
Chemicals/ Related Products, N.E.S. 261.16
206.69
Manufactured Goods by Material
160.05
2,101.2
Machinery and Transport Equipment
844.41
498.42
Misc Manufactured Articles
171.58
157.85
Commodities & Transactions, N.E.S.
TOTAL
84.19
98.76
1,691.81 3,399.84
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KEY PROSPECTS
• Equipment & Scientific Instruments
• Security-related Products
• Chemicals
• Professional Services (except Legal, Acctg)
(c) Lucie Newcomb 2004
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INFLUENCING FACTORS
• 1st and 3rd World conditions in parallel
• -great infrastructure (Banks, JSE, Utilities, Law)
• - high illiteracy rate; many in impoverished conds.
• Heavy Commonwealth/EU influence
• - The Queen’s English+/• - EU Business standards (A4 paper, bureaucratic)
• Recovering from isolation/apartheid
• Price- (NOT value-) driven
• HIV-AIDS Pandemic-The Corporate Side
(c) Lucie Newcomb 2004
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WHAT’S WORKING
• Very stable currency, low debt
• Good Political Stability/Low Risk
• Expanding markets/trading options
(c) Lucie Newcomb 2004
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WHAT’S CHALLENGING
• High Crime rates/personal violence
• Black Empowerment (BEE) Bumps
• Transformation as Evolution
(c) Lucie Newcomb 2004
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Life Standard Measurements- 2004*
LSM 1 (9.1%)
•DEMOGRAPHICS: Female 16-24, 50+
•SCHOOLING: Primary Completed
•HOME: Rural •Traditional Hut
•INCOME: R879 per month
•GENERAL: Little access to services.Little
ownership of durables, except radio sets
•ACTIVITIES: Gardening
*SAARF 2004
(c) Lucie Newcomb 2004
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Life Standard Measurements- 2004*
LSM 2 (12.7%)
•DEMOGRAPHICS: Male •16 - 34
•SCHOOLING: Primary Completed
•HOME: Rural
•INCOME: R1 068 per month
•MEDIA: Radio: African Language
•GENERAL: Water on plot. Little ownership
of durables, except radio sets and stoves
•ACTIVITIES: Gardening
*SAARF 2004
(c) Lucie Newcomb 2004
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Life Standard Measurements- 2004*
LSM 3 (14%)
• DEMOGRAPHICS: Female 16 - 24
• SCHOOLING: Up to some high school
• HOME: Rural
• INCOME: R1 408 per month
• MEDIA: Radio: ALS stations •TV: SABC 1
• GENERAL: Electricity, water on plot
•Minimal ownership of durables, except radio
sets and stoves
• ACTIVITIES: minimal
*SAARF 2004
(c) Lucie Newcomb 2004
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Life Standard Measurements- 2004*
LSM 4 (14.7%)
•DEMOGRAPHICS: 16 - 49
•SCHOOLING: Up to some high
HOME: some Urban
•HOME: R1 774 per month
•MEDIA: •Radio: ALS stations, Metro fm, P4
Radio KZN 99.5, •TV: SABC 1,2, ETV
•GENERAL: Electricity, water on plot, flush
toilet •TV sets, hi-fi/radio set, stove, fridge
•ACTIVITIES: - stokvel meeting, lottery
*SAARF 2004
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Life Standard Measurements- 2004*
LSM 5 (13.1%)
•DEMOGRAPHICS: Female 25-49
•SCHOOLING: to Matric
•HOME: Urban
•INCOME: R2 427 per month
•MEDIA: Radio: many TV: SABC 1,2,3+
•GENERAL: Electricity, water on plot, flush
toilet •TV sets, hi-fi/radio set, stove, fridge
•ACTIVITIES: exercise, painted interior of
house, stokvel meeting, tapes/ lottery tix
*SAARF 2004
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Life Standard Measurements- 2004*
LSM 6 (14 %)
•DEMOGRAPHICS: Male 25-49
•SCHOOLING: Matric+
•HOME: Urban
•INCOME: R4 075 per month
•MEDIA: Radio: community TV: SABC 1,2,3
•GENERAL: Electricity, water on plot, flush
toilet, many durables + cell phones
•ACTIVITIES: - many
*SAARF 2004
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Life Standard Measurements- 2004*
LSM 7 (6.2 %)
•DEMOGRAPHICS: Male 25+
•SCHOOLING: Matric+
•HOME: Urban
•INCOME: R6 455 per month
•MEDIA: Radio - wide range TV: SABC
SABC 1,2,3, e.tv, M-Net •Daily/Weekly
Newspapers, Magazines • internet 4 weeks
•GENERAL: Electricity, water on plot, flush
toilet •TV sets, hi-fi/radio set, stove, fridge
•ACTIVITIES: - many
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Life Standard Measurements- 2004*
LSM 8 (4.8 %)
•DEMOGRAPHICS: Female 35+
•SCHOOLING: Matric+
•HOME: Urban
•INCOME: R8 471 per month
•MEDIA: Radio: wide range TV: SABC1,2,3,
e.tv, M-Net, DStv
•GENERAL: •Full access to services •Own
many durables, incl. DVD, PC and satellite
•ACTIVITIES: - Many
*SAARF 2004
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Life Standard Measurements- 2004*
LSM 9 (5.9 %)
•DEMOGRAPHICS: Male 35+
•SCHOOLING: Matric+
•HOME: Urban
•INCOME: R11 566 per month
•MEDIA: •Radio:many •TV:SABC 2,3, e.tv,
M-Net, DStv •Daily+Newspapers,
Magazines • internet 4 weeks
•GENERAL: Full access to services •Owns
many durables, •Incl. PC, DVD and satellite
•ACTIVITIES: - many but not stockvel mtgs
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Life Standard Measurements- 2004*
LSM 10 (5.3%)
•DEMOGRAPHICS: Female, Male 35+
•SCHOOLING: Matric +
•HOME: Urban
•INCOME: R18 649 per month
•MEDIA: •Radio: wide range •TV: SABC 2,3
etv, M-Net, DStv
•GENERAL: Full access to services, Own
many durables incl DVD, PC, satellite
•ACTIVITIES: - Many, not stokvel mtgs
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*SAARF 2004
KEY PHRASES
• Hello: -Malo (Xhosa)
- Mora (Afrikaans)
- Howzit? (Slang English)
- Good Day (Standard English)
• Thank you: - Baye Dankie (Afrikaans)
- Nkosi (Xhosa)
• Miscellaneous: - Just Now - 90 minutes+
- Ubuntu - Consensus/Tribe
- Braii - BBQ
- Lekker-great! (Afrikaans)
(c) Lucie Newcomb 2004
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CONCLUSION
Doing Business in South Africa is much like
an old African proverb about how to eat an
elephant:
Best done one bite at a time!
NKOSI
(c) Lucie Newcomb 2004
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USEFUL RESOURCES
• saarf.co.za- SA Ad Research Foundation
• buyusa.gov/southafrica - US DOC CS
• southafrica.co.za - All Things S African
• iol.co.za - SA Daily Newspaper(s)
• link2southafrica.com - SA Embassy in US
(c) Lucie Newcomb 2004
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