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Doing Business in South Africa

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Title: Doing Business in South Africa


1
Doing Business in South Africa
  • Dr. Ernest Betts

2
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
3
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
5
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
6
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
7
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
8
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
9
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
10
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
11
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
12
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
13
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
14
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
15
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
16
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
17
Real Gross Domestic Product
Source DiversityInc - South Africa Facing the
Future (p 37)
18
Increase in Personal Disposable Income by Race
(Mixed Race)
Source DiversityInc - South Africa Facing the
Future (p 37)
19
Foreign Investment
Source DiversityInc - South Africa Facing the
Future (p 37)
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