South Africa in the 21st Century:

1
South Africa in the 21st Century

• Business or Monkey Business?
• Lucie M. Newcomb
• Global Software Services Marketing
• The Global LightWorks Foundation
• hello_at_globallightworks.org
• October 2004

2
Just the Facts

• Population43,586,200 (2003)
• Provinces 9
• Languages11 official languages, including
  Afrikaans, English, Ndebele,
• Pedi, Sotho, Swazi, Tsonga, Tswana, Venda, Xhosa
  and Zulu
• Area1,219,912 sq km
• GDP427.7 bil
• Currency Rand (ZAR)

3
Running the Numbers Export Import YTD
Food and Live Animals
71.68 71.18Beverages and Tobacco
12.96 24.89 Crude
Materials, Inedible, No Fuels 33.41
209.37 Mineral Fuels, Lubricants Matls
47.85 30.93 Animal/ Veg Oils, Fats
Waxes 4.52 0.45
Chemicals/ Related Products, N.E.S. 261.16
206.69 Manufactured Goods by Material
160.05 2,101.2Machinery and Transport
Equipment 844.41 498.42 Misc
Manufactured Articles 171.58
157.85 Commodities Transactions, N.E.S.
84.19 98.76 TOTAL 1,691.81
3,399.84 US Dept of Census
4
KEY PROSPECTS

• Equipment Scientific Instruments
• Security-related Products
• Chemicals
• Professional Services (except Legal, Acctg)

5
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 Queens English/-
• - EU Business standards (A4 paper, bureaucratic)
• Recovering from isolation/apartheid
• Price- (NOT value-) driven
• HIV-AIDS Pandemic-The Corporate Side

6
WHATS WORKING

• Very stable currency, low debt
• Good Political Stability/Low Risk
• Expanding markets/trading options

7
WHATS CHALLENGING

• High Crime rates/personal violence
• Black Empowerment (BEE) Bumps
• Transformation as Evolution

8
Life Standard Measurements- 2004LSM 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

9
Life Standard Measurements- 2004LSM 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
• SAARF 2004

10
Life Standard Measurements- 2004LSM 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

11
Life Standard Measurements- 2004LSM 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

12
Life Standard Measurements- 2004LSM 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

13
Life Standard Measurements- 2004LSM 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

14
Life Standard Measurements- 2004LSM 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
• SAARF 2004

15
Life Standard Measurements- 2004LSM 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

16
Life Standard Measurements- 2004LSM 9 (5.9 )

• DEMOGRAPHICS Male 35
• SCHOOLING Matric
• HOME Urban
• INCOME R11 566 per month
• MEDIA Radiomany TVSABC 2,3, e.tv, M-Net,
  DStv DailyNewspapers, Magazines internet 4
  weeks
• GENERAL Full access to services Owns many
  durables, Incl. PC, DVD and satellite
• ACTIVITIES - many but not stockvel mtgs
• SAARF 2004

17
Life Standard Measurements- 2004LSM 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
• SAARF 2004

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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)

19
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!
• N K O S I

20
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