Doing Business in South
Africa
Dr. Ernest Betts
About South Africa
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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
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http://en.wikipedia.org/wiki/South_Africa
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).
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Natural Resources
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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
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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:
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Labor force:16.09 million economically active (2011 est.)
Labor force - by occupation:
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Agriculture: 2.6%
Industry: 30.3%
Services: 67.1% (2011est.)
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
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The main industries are:
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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)
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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)
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Source: www.cia.gov
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Communications
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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.
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http://en.wikipedia.org/wiki/South_Africa
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Main Cultural Differences
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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%
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Sources: wikipedia.org & cia.gov
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Black South Africans
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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
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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-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.
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http://en.wikipedia.org/wiki/Culture_of_South_Africa
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Asian South Africans
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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)
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Source: DiversityInc- Jan/Feb 2006
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Real Gross Domestic Product
Five-Year Averages
5.0%
4.4%
4.0%
3.4%
2.6%
3.0%
2.0%
1.5%
1.0%
0.2%
0.0%
19851989
19901994
19951999
Source: DiversityInc - South Africa: Facing the Future (p 37)
20002005
20062009
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Increase in Personal Disposable
Income by Race
450%
390%
400%
350%
300%
250%
200%
180%
200%
150%
100%
60%
50%
0%
African
Coloured
Indian
White
(Mixed Race)
Source: DiversityInc - South Africa: Facing the Future (p 37)
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Foreign Investment
$140.0
$122.7
$120.0
Billion
$100.0
$80.0
$68.2
$60.0
$40.0
$30.8
$20.0
$3.9
$6.6
$13.5
$14.9
$0.0
1978
1982
1986
1190
Source: DiversityInc - South Africa: Facing the Future (p 37)
1994
1998
2000
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