Doing Business in South Africa

1. Doing Business in South Africa Dr. Ernest Betts

2. 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 About South Africa Coat of Arms of South Africa http://en.wikipedia.org/wiki/South_Africa

3. 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). Geography 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 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

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 rate:5.1% (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 • 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

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_Africa

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_Africa

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_Africa

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_Africa

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)