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 Africahttp://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

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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 force:16.09 million economically active (2011 est.) Labor force - by occupation:

Agriculture: 2.5% Industry: 31.6% Services: 65.9% (2011est.)

Unemployment rate:25.2% (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 rate:5.1% (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

Radios:17 million (2001) Television broadcast stations:556 (plus 144

network repeaters) (1997) Televisions: 6 million (2000) Internet Service Providers (ISPs):150 (2001) Internet users:5.1 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_Africa

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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_Africa

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Coloured South Africans

These are people of mixed-raceCulturally speaking they are much closer

to whitesThey 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_Africa

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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_Africa

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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

Five-Year Averages

1.5%

0.2%

2.6%

3.4%

4.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

1985-1989

1990-1994

1995-1999

2000-2005

2006-2009

Source: DiversityInc - South Africa: Facing the Future (p 37)

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Increase in Personal Disposable Income by Race

200%180%

390%

60%

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

African Coloured Indian White(Mixed Race)

Source: DiversityInc - South Africa: Facing the Future (p 37)

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Foreign Investment

$122.7

$14.9$13.5$6.6

$3.9

$30.8

$68.2

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

1978 1982 1986 1190 1994 1998 2000

Bil

lio

n

Source: DiversityInc - South Africa: Facing the Future (p 37)