Doing Business in South Africa

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Doing Business in South Africa

• Dr. Ernest Betts

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About South Africa

• Capital
• Administrative Pretoria
• Legislative Cape Town
• Judicial Johannesburg
• Government Paliamentary Democracy
• President Jacob Zuma
• Population - 51,770,560 (2012 estimate)
• Official Languages -Afrikaans, English, IsiZulu,
  IsiXhosa, SiSwati, Ndebele, Southern Sotho,
  Northern Sotho, Tsonga, SeTswana, Venda

Coat of Arms of South Africa
http//en.wikipedia.org/wiki/South_Africa
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Geography

• South Africa is located at the southern tip of
  Africa.
• The area is 470,979 square miles.
• It is the world's 25th-largest country (after
  Mali).
• South Africa is comparable in size to Colombia,
  and is nearly twice the size of the US state of
  Texas.
• It borders the countries of Namibia, Botswana,
  Zimbabwe, Mozambique, Swaziland, and Lesotho.
• Its coastline stretches more than 1, 550 miles
  and across two oceans (the Atlantic and the
  Indian).

http//en.wikipedia.org/wiki/South_Africa
4
Natural Resources

• Gold, chromium, antimony, coal, iron ore,
  manganese, nickel, phosphates, tin, uranium, gem
  diamonds, platinum, copper, vanadium, salt,
  natural gas

Source www.cia.gov
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Economy

• South Africa is a middle-income, emerging market
• GDP - 578.6 Billion 25th
• GDP - per capita (PPP)11,035 (2011 est.) 77th
• GDP - composition by sector
• Agriculture 2.6
• Industry 30.3
• Services 67.1 (2011est.)
• Labor force16.09 million economically active
  (2011 est.)
• Labor force - by occupation
• Agriculture 2.5
• Industry 31.6
• Services 65.9 (2011est.)
• Unemployment rate25.2 (2012 est.)
• Population below poverty line 50 (2012 est.)

Source www.cia.gov
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Industries

• The main industries are
• mining (world's largest producer of platinum,
  gold, chromium
• metalworking
• machinery
• textiles
• iron and steel
• chemicals
• fertilizer
• foodstuffs
• commercial ship repair
• Industrial production growth rate5.1 (2010 est.)

Source www.cia.gov
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Exports

• Exports 101.2 billion (2011 est.)
• Commodities exported gold, diamonds, platinum,
  other metals and minerals, machinery and
  equipment
• Export partners China 13.7, Japan 8.7, UK
  7.1, US 10.1, Germany 7.3, India 4.3 (2011)

Source www.cia.gov
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Imports

• Imports 106.8 billion (2012 est.)
• Commodities imported machinery and equipment,
  chemicals, petroleum products, scientific
  instruments, foodstuffs
• Import partners Germany 11.2, China 13.7, US
  7.2, Japan 4.8, Canada 6.3, UK 4.3, Saudi
  Arabia 5.3, Iran 4.3 (2010)

Source www.cia.gov
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Communications

• Telephones - main lines in use 4.729 million
  (2005)
• Telephones - mobile cellular 33.96 million
  (2005)
• The telephone system is the best developed and
  most modern in Africa
• Radios17 million (2001)
• Television broadcast stations556 (plus 144
  network repeaters) (1997)
• Televisions 6 million (2000)
• Internet Service Providers (ISPs)150 (2001)
• Internet users5.1 million (2005)

Source www.cia.gov
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Ethnic Diversity

• South Africa is a very ethnically diverse nation.
  
• It has the largest population of people from a
  mixed ethnic background, whites, and Indian
  communities in Africa.
• Black South Africans account for slightly more
  than 70 of the population.

http//en.wikipedia.org/wiki/South_Africa
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Main Cultural Differences

• Because of the legacy of Apartheid segregation,
  many cultural differences correspond closely to
  the racial groups defined by Apartheid
• Blacks 79.7
• Whites 8.7
• Coloured 8.9
• Asians 2.6

Sources wikipedia.org cia.gov
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Black South Africans

• Black majority still has a substantial number of
  rural inhabitants
• Lead largely impoverished and necessarily simple
  lives.
• However blacks are increasingly urbanized and
  westernized.
• Usually speak English or Afrikaans in addition to
  their native tongue,
• Most are Christian
• Popular music forms include the internationally
  known Ladysmith Black Mambazo

http//en.wikipedia.org/wiki/Culture_of_South_Afri
ca
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White South Africans

• Lead lifestyles similar in many respects to
  whites found in Western Europe and North America
• Sports are immensely popular.
• Historical enmity between Afrikaans and
  English-speaking whites has given way to more
  amiable banter or rivalry.
• Religious beliefs are also strong
• Perhaps 90,000 whites are Jewish, with a similar
  number being of Portuguese origin. There are some
  Greeks and Christian Lebanese.

http//en.wikipedia.org/wiki/Culture_of_South_Afri
ca
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Coloured South Africans

• These are people of mixed-race
• Culturally speaking they are much closer to
  whites
• They share the language and religious beliefs of
  whites.
• A small minority of Coloureds, known as Cape
  Malays are Muslim.

http//en.wikipedia.org/wiki/Culture_of_South_Afri
ca
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Asian South Africans

• Asians preserve their own cultural heritage,
  languages and religious beliefs
• Mostly either Hindu or Muslim and speak English
• Although Indian languages are seldom spoken or
  understood, English-subtitled Bollywood films and
  television programmes are popular among South
  African Indians.
• There is a much smaller Chinese community in
  South Africa, although its numbers have been
  increased by immigration from Taiwan (although
  the Taiwanese were classified as "White", rather
  than Asian by the Apartheid regime.)

http//en.wikipedia.org/wiki/Culture_of_South_Afri
ca
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Did You Know?

• More than 600 U.S. companies do business in South
  Africa.
• South Africa has only 10 percent of the
  population of sub-Saharan Africa but generates
  more than 45 percent of the regions gross
  domestic product (according to South African
  Institute of Race Relations)

Source DiversityInc- Jan/Feb 2006
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Real Gross Domestic Product
Source DiversityInc - South Africa Facing the
Future (p 37)
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Increase in Personal Disposable Income by Race
(Mixed Race)
Source DiversityInc - South Africa Facing the
Future (p 37)
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Foreign Investment
Source DiversityInc - South Africa Facing the
Future (p 37)