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@globallightworks.org October 2004

2. Just the Facts Population:43,586,200 (2003) Provinces: 9 Languages:11 official languages, including Afrikaans, English, Ndebele, Pedi, Sotho, Swazi, Tsonga, Tswana, Venda, Xhosa and Zulu Area:1,219,912 sq km GDP:$427.7 bil Currency: Rand (ZAR) (c) Lucie Newcomb 2004

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 844.41 498.42Misc 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) (c) Lucie Newcomb 2004

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 Queen’s English+/- • - EU Business standards (A4 paper, bureaucratic) • Recovering from isolation/apartheid • Price- (NOT value-) driven • HIV-AIDS Pandemic-The Corporate Side (c) Lucie Newcomb 2004

6. WHAT’S WORKING • Very stable currency, low debt • Good Political Stability/Low Risk • Expanding markets/trading options (c) Lucie Newcomb 2004

7. WHAT’S CHALLENGING • High Crime rates/personal violence • Black Empowerment (BEE) Bumps • Transformation as Evolution (c) Lucie Newcomb 2004

8. Life Standard Measurements- 2004*LSM 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 (c) Lucie Newcomb 2004

9. Life Standard Measurements- 2004*LSM 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 (c) Lucie Newcomb 2004

10. Life Standard Measurements- 2004*LSM 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 (c) Lucie Newcomb 2004

11. Life Standard Measurements- 2004*LSM 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- 2004*LSM 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- 2004*LSM 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- 2004*LSM 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- 2004*LSM 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- 2004*LSM 9 (5.9 %) •DEMOGRAPHICS: Male 35+ •SCHOOLING: Matric+ •HOME: Urban •INCOME: R11 566 per month •MEDIA: •Radio:many •TV:SABC 2,3, e.tv, M-Net, DStv •Daily+Newspapers, 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- 2004*LSM 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

18. 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) (c) Lucie Newcomb 2004

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 (c) Lucie Newcomb 2004

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 (c) Lucie Newcomb 2004