South Africa Business Analysis
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South Africa Business Analysis

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South Africa Business Analysis Presentation Transcript

  • 1. South Africa BUSINESS ANALYSIS BY FAGUN MITTAL (155) VIVEK JHALA (175) YAJUR GUPTA (176)
  • 2. Topography• Location• Area• Climate• Border Countries• Natural Hazards• Natural Resources
  • 3. People• Population – 49,109,107 (25)• Median Age – 24.7 years• Population Growth Rate – Age Structure minus 0.051% 0 - 14 15 - 64 65 & Above• Birth Rate – 19.61 births/1000 5% population 29%• Death Rate –16.99 deaths/1000 population (4) 66% SOURCE - CIA
  • 4. People contd. Languages –• Sex Ratio – 0.99 • IsiZulu (official) 23.8% male/female • IsiXhosa (official) 17.6%• Life expectancy at birth – • Afrikaans (official) 13.3% 49.2 years • Sepedi (offcial) 9.4% • English (official) 8.2%, •Setswana (official) 8.2% • Sesotho (official) 7.9% • Xitsonga (official) 4.4% • other 7.2% • isiNdebele (official) • Tshivenda(official) • siSwati (official) SOURCE - CIA
  • 5. Ethnic Groups Black African White Coloured Indian/Asian 2% 9% 10% RELIGION ZIONUNSPECIFIE CHRISTIAN 11% 79% D CHARISMATI 1% NONE C OTHER 15% 8% 2% CATHOLIC 7% METHODIST OTHER 7% CHRISTIAN 36% DUTCH REFORMED MUSLIM ANGLICAN 7% 2% 4% SOURCE - CIA
  • 6. Literacy Rate Education Education Expenditure : 86.4 5.4% of GDP (2009) 13.4 Male-Female Literacy Rate Female Male Female Male 85.00% 85.50% 86.00% 86.50% 87.00% 87.50% Source : CIA
  • 7. Infrastructure TRANSPORT COMMUNICATION TELEPHONE MAIN LINE – 4.32AIRPORTS – 578 (11) MILLION (34)RAILWAYS – 20,872 KM (14) TELEPHONE MOBILE CELLULAR – 46.44 MILLION (26)ROAD – 362,099 KM (18) INTERNET HOSTS – 3.75 MILLION (24) INTERNET USERS – 4.42 MILLION (54) SOURCE - CIA
  • 8. Employment Statistics DECEMBER 2010 POPULATION 15-64 YEARS 32,193,000 LABOUR FORCE 17,269,000 EMPLOYED 13,132,000 FORMAL SECTOR (NON AGRI) 9,163,000 INFORMAL SECTOR (NON AGRI) 2,225,000 AGRICULTURE 627,000 PRIVATE HOUSEHOLDS 1,117,000 UNEMPLOYED 4,137,000 NOT ECONOMICALLY ACTIVE 14,924,000 DISCOURAGED WORK SEEKERS 2,150,000OTHER (NOT ECONOMICALLY ACTIVE) 12,774,000 Source – www.statssa.gov.za
  • 9. Income Distribution• GINI INDEX – 65.0 (2005)• 2nd Highest in the World after Namibia• Black population who make up almost 80% of the population only account for 41% of South Africas income .• White population who make up about 9% of South Africa account for 45% of the income.
  • 10. Social Problems• Ranked 2nd for murders & 1st for assaults and rape per capita (2000)• Has amongst the highest incidences of child and baby rape in the world.• High record of car hijackings and a lower rate of car ownership.• Crime against commercial farmers continues to be a major problem in the country
  • 11. HIV/AIDS• Highest number of people living with HIV/AIDS (5.6 million in 2009) .• In 2009, 310,000 people died of HIV/AIDS .• More prevalent among female .• Pregnant women have 30% chances of being affected by HIV .• 8.6% of GDP spend on health expenses (WHO 2006) .
  • 12. Hofstede Model - Analysis South Africa World 65 63 64 5549 50 49 43 45 PDI IDV MAS UAI LTO
  • 13. BUSINESS ETIQUESTTESApperance• Urban classes mostly wear western dresses.• Men should wear dark coloured business suits.• Women mostly wear elegant business suits and dresses.Greeting• Shake hands while maintaining eye contact and keep smiling.• Some women do not shake hands so it is best to wait for them to extend their hands.• Use titles and surnames to address people.• Business cards have no formal exchange of protocol.
  • 14. Business Meeting Etiquettes• Appointments are necessary and should be made as far in advance as possible.• It is difficult to arrange meetings with senior level managers.• Personal relationships are important.• After a meeting, send a letter summarizing what was decided and the next steps. Relationships & Communications• Netwoking and relationship building are crucial for long term business success.• Relationships are built in the office.• Communication styles depend upon one’s culural heritage.• Metaphors ans sports anologies are widely used.• Face-to-face meetings are preferred.
  • 15. Top 5 Exports Top 5 Imports• Gold • Machinery• Diamond • Transport Equipment• Platinum • Chemicals• Machinery & • Petroleum Products Equipment • Textiles• Coal • Scientific Equipment• Motor Vehicles & parts
  • 16. Top Exporting Partners Top Importing Partners Japan Germany USA US Germany China China Saudi Arabia 5.2 UK 4 UK 11.1 Netherlands 5.5 11.2 Japan 6.8 6 6.2 11.1 7.9 8 11.1
  • 17. Barriers To Trade• Tariffs• Transparency, Corruption and Crime• Immigration Laws• Agricultural Standards• Import Restrictions
  • 18. Corruption• Private use of public resources.• Bribery.• Electoral fraud.• Ranked 55 least corrupt country in the world. Notable Incidents of Fraud and Corruption• The South African Arms Deal.• Advanced Fee Fraud.
  • 19. Currency• USD vs ZAR (2001-2010)• Current Rate 1 USD = 6.95 ZAR
  • 20. Type of Government• Constitutional democracy with a three-tier system of government.• Independent judiciary combines aspects of Parliamentary and Presidential systems.• Executive authority is vested in the President, who is the head of the State and Govt.• The national, provincial and local levels of government all have legislative and executive authority in their own spheres.• The government is undertaken by three inter-connected branches of government: -Legislature: The National Assembly and the National Council of Provinces . -Executive: The President, who is both Head of State and Head of Government . -Judiciary: The Constitutional Court, the Supreme Court of Appeal, and the High Court .
  • 21. Ease Of Doing Business Ranked 34th out of the 183 economies in the world TOPIC RANKING DB 2010 RANK Starting a Business 75Dealing with Construction Permits 52 Registering Property 91 Getting Credit 2 Protecting Investors 10 Paying Taxes 23 Trading Across Borders 148 Enforcing Contracts 86 Closing a Business 77
  • 22. Incentives to Encourage Foreign InvestmentThe South African government offers a range of incentives to encourage foreign investment and grow South African business. Foreign companies may qualify for various tax incentives, while local companies are able to make use of schemes which include export facilitation, development finance and investment incentives.There are more than 65 incentives given by government which include incentives inManufacturing, Trading, I.T, Financing, Export etc
  • 23. Some Incentives• Business Process Outsourcing (BPO) and Off- shoring(All)• Entrepreneurial Mining and Beneficiation Finance(Mining, Beneficiation and Jewellery)• Strategic Industrial Projects(Industry, Technology and Agrotourism)
  • 24. The Economy - Statistics• GDP – $277.4 billion (2009) (nominal; 32nd) – $488.6 billion (2009) (PPP; 25th)• GDP growth – 4.6% (Q1 2010)• GDP per capita – $5,684 (2009) (nominal;76th)$10,136 (2009) (PPP; 79th)• GDP by sector – agriculture (0.9%), industry (20.6%), services (78.5%)• Inflation (CPI) – 4.6% (May 2010)• Labour force – 17.32 million economically active (2009 est.)• Unemployment – 24% (2009 est.)• Ease of Doing Business Rank – 34th• FOREX RESERVE – 43,834 Millions of USD
  • 25. Global Companies In South Africa• Acer Africa• Barclays Bank• BMW South Africa• Britannia Biscuits• EDS South Africa• General Electric• Levi Strauss• Singapore Airlines• Vodafone• Volkswagen South Africa
  • 26. Reasons of Investing in South Africa• Sound economic policies• World-class infrastructure• Access to markets• Natural Resources• Trade reform, strategic alliances
  • 27. Major Constrains On Enterprise Operation And Growth• Crime• Impact of HIV/AIDS• Power• Racial discrimination
  • 28. Thank You(any questions ?)