| |
|
|
| |
Home
>
World
> Africa
> South Africa
|
Business Profile
Economy: The South African economy dominates the southern part of the African continent. Agriculture is strong enough to allow South Africa virtual self-sufficiency in foodstuffs: livestock is reared extensively, and sugar, maize and cereals are produced in large quantities. The foundation of the modern South African economy, however, is mining. The country has considerable deposits of common minerals such as coal, but also of valuable ores which are in high demand but are scarce everywhere else except Russia: chromium, manganese, vanadium and platinum appear in the largest concentrations of anywhere in the world. Its most valuable minerals, however, are gold and diamonds, of which South Africa has long been both the world’s largest producer and exporter. Gold alone accounts for one-third of the country’s entire export income. The only key mineral that South Africa lacks is oil. The manufacturing industry is concentrated in metal-based industries, mainly steel and heavy engineering, with machinery and transport equipment as the principal products. This sector accounts for around 20 per cent of total economic output. Advanced technological and service industries have emerged in recent years: the financial services industry, in particular, has expanded very rapidly and is now a mainstay of the South African economy. The Mandela government initially committed itself to a gradual economic transition through its Reconstruction and Development Programme whose principal aim was to tackle the gross inequalities inherited from the apartheid regime. Progress was tempered, however, as the Government, influenced by the international financial community, also insisted on stringent fiscal restraint: this is felt in many quarters to have hindered development. Inflation is currently eight per cent and annual growth a moderate 2.5 per cent. However, several important economic indicators have remained intractable: the large external debt, the continuing weakness of the Rand on international markets, and – most importantly – the chronically high level of unemployment (officially 27 per cent). Perhaps the greatest long-term problem, especially as regards its impact on the workforce, is the very high level of HIV/AIDS infection in the country.
The Government, in partnership with business and trade unions, has identified tourism as a potential source of new jobs and is directing substantial investment towards that sector. A more controversial policy, which attracts both strong support and opposition, aims to transfer major economic assets – notably the mines – to ‘black empowerment entities’ over a ten-year period. This is designed to redress the massive economic inequalities which continue to afflict South Africa.
South Africa is the dominant member of the local Southern African Customs Union (with Botswana, Lesotho, Namibia and Swaziland); it has also recently joined the Southern African Development Community and the Organisation of African Unity. The USA, the UK, Germany and Japan are South Africa’s main trading partners.
Business: Suits are generally expected to be worn for meetings. Appointments are generally necessary and punctuality is expected. Business cards are widely used. Office hours: Mon-Fri 0830-1630.
Commercial Information: The following organisations can offer advice: South African Chamber of Business (SACOB), 24 Sturdee Avenue, Rosebank, Gauteng (tel: (11) 446 3830; fax: (11) 446 3849; e-mail: info@sacob.co.za; website: www.sacob.co.za); or South African Foreign Trade Organisation (SAFTO), PO Box 782099, Sandton 2146 (tel: (11) 887 9141; fax: (11) 786 3861; e-mail: wldtrade@iafrica.com; website: www.foreign-trade.co.za).
Conferences/Conventions: There are roughly 815 conference venues in South Africa. The main conference venues are in Pretoria and Johannesburg though facilities exist in all other major towns, provided mainly by hotels and universities. The Conference and Incentive Promotions Division of SATOUR exists to promote South African venues and to ensure high standards of service and facilities for conference organisers. Contact SATOUR for details (see Contact Addresses section); or Southern African Association for the Conference Industry (SAACI), PO Box 414, Kloof 3640 (tel: (31) 764 6977; fax: (31) 764 6974; e-mail: admin@contactpub.co.za; website: www.saaci.co.za); or Cape Chamber of Commerce and Industry, 19 Louis Gradner Street, Foreshore, PO Box 204, 8000 Cape Town (tel: (21) 402 4300; fax: (21) 402 4300; e-mail: info@capechamber.co.za; website: www.capechamber.co.za).
Copyright © 2003 Columbus Publishing Ltd.
Terms and Conditions apply.
|
|
|
|
|
