Overview

• The South African government has formally abandoned the apartheid ideology, and introduced a wide range of reforms, so the long-standing stigma of past political instability is now fading.
• Although South Africa is in many respects a developed country, much of its population lives in poverty.
• The high level of crime in South Africa is seen as a significant threat to the country's overall stability. Foreigners should exercise particular caution in the areas surrounding hotels and public transportation centers.
• South Africa has an enormous wealth in natural resources, including abundant gold, platinum, aluminum and chrome. 
• South Africa has excellent infrastructure in telecommunications, road, rail, air and financial services. 
• South Africa also has abundant energy resources and provides over half of Africa's electricity.   
• The South African government is committed to attracting international investment.
• South Africa boasts the largest economy in Africa.
• The US is the largest single investor into South Africa with over 500 US companies currently doing business in South Africa
• Located on the southernmost tip of the African continent, South Africa provides easy access not only to surrounding countries, but also to India and the Far East.

Opportunities

• Automotive component industry
• Plastics
• Tourism
• Clothing and textiles
• Information technology
• Manufactured jewelry
• Stainless steel
• Telecommunications Equipment
• Telecommunications Services
• Information Technology
• Computer Software
• Computer Services
• Medical Equipment
• Chemical products
• Timber

Marketing Tips

• It is best for overseas firms to contract with a South African agent for the purposes of marketing to the South African population.
• South Africa is very culturally diverse, with 11 official languages. Commercially, English is used most frequently.
• Decisions are generally made at the top level of authority, so it is key to send senior company staff to ensure smooth negotiations.
• It is becoming increasingly important to do business directly with provincial authorities as a result of decentralization efforts of the federal government.
• Tough bargaining is not a trait of South African business culture.
• South African businesspeople expect quick responses.
• American companies that bring customer focused attitudes and work practices will find themselves with a competitive advantage in the South African market.

Business Culture

• South African business culture is generally very similar to that of the United States.
• South African business people dress conservatively; loud sports jackets and casual pants are rarely seen in the work environment.
• South Africans are very punctual and will make every effort to be on time for appointments.
• A handshake is the standard greeting. 
• Do not address business associates by their first names unless they have invited you to.
• Because of cultural expectations, aggressive behavior by women may be considered rude.

DOs                                                               

• Use titles when applicable
• Tipping is customary at 10-15 percent.

DON’Ts

• In initial conversation, do not ask about an Afrikaner's marital status or family.
• Exposure of valuables is an open invitation of theft. 

Legal Environment

The South African legal system is a mixture of Roman-Dutch law imported by the Dutch in 1652 and English Common law (since 1906). The South African courts are open to foreigners with the same terms and conditions that are applied to the citizens of South Africa.