Lynsey Sheriden

1
Group 7

• Lynsey Sheriden
• Susan Guest
• Irina Pobol

Emma Moor Michela Bacci David Cherrie Suh Cheong
Chong
2
History
Vasco de Gamma Spice Route
Mandela
Union of South Africa
Anglicization of Government Freeing of
Slaves Afrikaners make Great Trek
H.F. Verwoerds Establishment of rigid racial
laws
F.W. de Klerk scraps Apartheid
Discovery of Diamonds Gold Mines
European Settlers Boers
Withdrawal from British Commonwealth
Mbeki
Botha increases Presidential Power
1498
1910
1652
1814
1867
1961
1963
1991
1987
1994
1999
3
South Africa

• Literacy - 81.8
• Languages
• 11 official languages
• Ethnic Groups
• Black 75.2, White 13.6, Coloured 8.6, Indian
  2.6
• Religions
• Christian 68.0, Muslim 2.0, Hindu 1.5,
  Indigenous beliefs and animist 28.5
• Currency Rand

4
Resources

• Natural resources
• platinum, gold, chromium, coal , iron ore,
  manganese, nickel, phosphates, tin, uranium,
  diamonds, copper, natural gas.
• Population
• 43,421,021
• Growth rate 0.5
• Net migration rate -1.9/1000 population
• Life expectancy 51.1 years

5
Resources contd

• Labour Force
• 15 million economically active (1997 est.)
• 30 unemployment (1999 est.)
• Military Manpower
• 6,901,252 males fit for military service

6
Institutions

• Government
• Organisation of African Unity
• South African Development Community(SADC)
• Trade organisations
• World Trade Organisation(WTO)
• South African Customs Union(SACU)
• Cairns Group

7
Institutions contd

• Truth and Reconciliation commission
• Tribes
• Volkstaat Council
• Concept of a nation state for Afrikaners.

8
Economy

• Positive
• Middle income developing country
• Abundant supply of natural resources
• Well developed financial, legal, communications,
  energy and transport sectors
• Stock Exchange which ranks tenth in the world
• GDP real growth rate 0.6
• Industries include production of platinum, gold
  and chromium, car assembly, textiles, iron and
  steel

9
Economy contd

• Positive contd
• Exports of Diamonds and gold
• Main export partners UK, Italy, Japan, US,
  Germany
• Exports 28 billion Imports 26 billion
• Negative
• 30 unemployment
• Economic problems from the apartheid era
• Inflation 5.5
• Crime corruption and HIV/AIDS

10
Infrastructure

• White paper on National Transport Policy released
  in 1996
• Roads
• 7000km national road network to be extended to
  20000km of primary roads in the future.
• 80 of all freight is carried by road transport
• Railways
• Spoornet largest operator of railways vision
  of world class freight logistics
• Coal and Iron ore exported by rail.
• Extensive passenger network

11
Infrastructure contd

• Airports
• 30 International airports
• Ports
• 7 Commercial ports which facilitate import and
  export
• Ports are constantly improved and offer
  reasonable tariffs
• Communications
• Best developed and most modern in Africa
• ISPs 58

12
What is government policy regarding foreign
workers in South Africa?

• Employment opportunities right across the
  spectrum and especially in the unskilled and
  semi-skilled categories are limited. There is
  consequently no special drive to attract foreign
  workers to South Africa. Offers of employment
  should therefore be extremely well motivated and
  in respect of a position in an occupational
  category for which a proven demand exists. The
  Decisive factor in the consideration of
  applications for work permits is whether or not
  there are South African citizens or permanent
  residents available to fill or who can be trained
  for the position in question
• (Taken from Government advice on applying for
  work permits. http//www.gov.za/forms/work_permit.
  pdf)

13
Workforce

• The Employment Equity Act 1998
• Positive discrimination
• Achieve representivity
• in employment
• Fines for contravention

14
Workforce contd

• Strikes over 3million workdays lost due to
  strike action in 1998
• Strong trade unions
• 30 Unemployment 45 of Blacks unemployed

15
Risk

• Political risk
• Violent Crime
• Corruption
• War/Conflict with
• neighbouring countries
• Institutional risk
• Government
• Tariffs

16
Risk contd

• Institutional risk contd
• Privatisation
• Immigration Policy
• Unemployment
• Education and lack of skills
• Trade Unions
• Population
• HIV/Aids
• Drugs
• Environment

17
Internationalisation

• Stated government policy
• To encourage foreign investment especially Direct
  investment
• Tax incentives eg Tax holiday,
• Regional incentives eg tax-free grants
  subsidies for manufacturing, processing or
  assembling
• Export incentives eg export subsidies, capital
  lending
• Successful foreign direct investment
• DaimlerChrysler, VW, BMW, Ford, Fiat

18
Internationalisation contd

• Current situation
• 21 Ratio between DI of SA abroad DI in SA
• Deterrents
• Gvts lack of co-ordination protectionism
• Work permits
• Crime
• Trade Unions labour legislation
• HIV/AIDS
• Zimbabwe
• Poor GDP inflation

19
Conclusion

• Keys to success
• product or service has applications in
  multicultural society
• Positives
• Western-style commercial system, natural
  resources and a high per capita disposable income
• Negatives
• low productivity, sluggish economy and potential
  tribal and racial unrest.

20
Sources

• Kamwangamalu, N.M. Managing multilingualism in
  the new South Africa a market orientated
  approach. African Studies Conference AFSAAP99
• Martin, J. From the cold. Management Review, Feb
  1999 p23
• www.cia.gov
• www.thinkSouthAfrica.gov.uk
• www.africa.com
• www.mg.co.za
• www.tradeport.org
• www.wto.org
• www.gov.za/forms/work_permit.pdf
• www.southafrica-newyork.net
• www.lonely planet