South Africa Cross Cultural

11/7/2011

SCHOOL OF
South Africa: A Cross Cultural
PETROLEUM
MANAGEMENT Approach

Managing Cross Cultural Issue (MCCI) | ABHIK TUSHAR DAS
(EMBA10), NITIRAJ RAJPUT (PGP10), VIRAL NORIYA (PGP10)

School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India.
Managing Cross Cultural Issues

Contents:

1. Population of the country; its influence in terms of PPP (Purchasing Power Parity)
and GDP (Gross Domestic Product)
2. Political turmoil history and tribal culture: Nelson Mandela and other national
leaders formed the policy of the nation and white and black population, opposition
to apartheid and racial discrimination
3. Resource rich country: Endowed with natural resources and also strategic location
from rags to riches, opportunities in sea trade serves as link to the history of Cape
Town
4. Kimberley the capital of the Northern Cape: Diamond mining, trading, roots of
DeBeers
5. Colour of flag reasons significance, agricultural produce long sea coast promote air
ways and international investment and tourist spot.
6. Start of Satyagrah from Gandhiji’s movement after the infamous train journey to
Pretoria; now the administrative capital
7. Sports: Rugby, cricket and football, hosting of FIFA World Cup as well as Cricket
World Cup
8. Music and dance forms, diversity, homogeneity and heterogeneity among the
culture
9. Dress and nature of people, gender issues patriarchal or matriarchal society
10. Crime rate, law and order, civil society status
11. Business sentiment, etiquette and environment: promotional activities to attract
foreign businesses
12. Indian business houses foray into African businesses with Airtel, Reliance and
Vodafone’s bid to acquire MTN
13. Cultural similarities and disparities between India and South Africa
14. Conclusion

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Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 2


A Brief Country History:

The Republic of South Africa (also referred to as South Africa, SA or RSA) is a country in
southern part of the African continent. Located at the southern tip of Africa, it is divided into nine
provinces, with 2,798 kilometres of coastline on the Atlantic and Indian oceans. To the north of the
country lie the neighbouring territories of Namibia, Botswana and Zimbabwe; to the east are
Mozambique and Swaziland; while Lesotho is an enclave surrounded by South African territory

South Africa contains some of the oldest archaeological and human fossil sites in the world;
suggesting that various HOMININ (Human ancestral species) existed in South Africa from about
three million years ago. Today, South Africa has one of the most progressive constitutions in the
world, which guarantees both civil and socio-economic rights and the political environment is
conducive to political debate, dialogue and contestation. South Africa’s 1994 transition from
apartheid to constitutional democracy remains one of the most important and impressive political
transitions of our time. It is a powerful demonstration of the proposition that a peaceful,
negotiated path from conflict and injustice to cooperation and reconciliation is possible; despite the
complex history of oppression, institutionalized violence, and diverse social fabric that has defined
South Africa. In 1487, the Portuguese explorer Bartolomeu Dias became the first European known
to have reached southern Africa, in 1652, a century and a half after the discovery of the Cape Sea
Route; Dutch East India Company established a refreshment station at the Cape of Good Hope, at
what would become Cape Town for transporting slaves from Indonesia, Madagascar, and India as

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labour for the colonists in Cape Town. The discovery of diamonds and later gold triggered the 19th-
century conflict known as the Anglo-Boer War, as the Boers (Dutch, Flemish, German, and French
settlers) and the British fought for the control of the South African mineral wealth resulting in Cape
Town becoming a British colony in 1806 after Great Britain took over the Cape of Good Hope area
in 1795, to prevent it from falling under control of the French First Republic, which had invaded the
Dutch Republic. In the Boer republics from as early as the Pretoria Convention (chapter XXVI) and
subsequent South African governments, the legislature passed legally institutionalised segregation,
later known as apartheid by established three racial classes: white, coloured (people of Asian or
mixed racial ancestry), and black, with rights and restrictions for each. In 1931 the union was
effectively granted independence from the United Kingdom but the Nationalist Government
classified all peoples into three races, developed rights and limitations for each, such as pass laws
and residential restrictions. The White minority enjoyed the highest standard of living, the Black
majority remained disadvantaged by almost every standard, including income, education, housing,
and life expectancy. On 31 May 1961, following whites-only referendum, the country became a
republic and left the Commonwealth. The Mahlabatini Declaration of Faith enshrined the principles
of peaceful transition of power and equality for all flowing which in 1990 the National Party
government took the first step towards dismantling discrimination when it lifted the ban on the
African National Congress and other political organisations by releasing Nelson Mandela from
prison after twenty-seven years' serving a sentence for sabotage. The government repealed
apartheid legislation, destroyed its nuclear arsenal, acceded to the Nuclear Non-Proliferation Treaty
and rejoined the Commonwealth of Nations. South Africa held its first universal elections in 1994,
which the ANC won by an overwhelming majority.

Population of the country; its influence in terms of PPP (Purchasing Power Parity) and GDP (Gross
Domestic Product):

South Africa is increasingly gaining prominence on the international stage where it is becoming a
more active participant in events such as the Annual Meetings of the International Monetary Fund
and the World Bank, the G-20, G-24, and strategic alliances with emerging economies and alliances
such as BRIC and IBSA. Robust economic growth in the post-apartheid period has enabled a
measurable decline in income poverty. However, inequality has increased and as measured by the
Gini coefficient, inequality rose from 0.64 to 0.67 in the period 1995 to 2008 complemented with
the unemployment rate of over 25 percent, a disappointingly low life expectancy of 51 years,
having the largest number of people living with HIV/AIDS in the world (over 5.5 million). The global
economic downturn forced South Africa’s first recession in 17 years but a turnaround supported by
a revival in the automobile industry as well as increased demand for chemical products in the
economy has prompted a 3 percent annual growth rate driven primarily by renewed global demand
for commodities and spending related to the World Cup 2010.

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Population facts:

Province Capital Largest city Area (km²) Population
Eastern Cape Bhisho Port Elizabeth 168,966 6,829,958
Free State Bloemfontein Bloemfontein 129,825 2,759,644
Gauteng Johannesburg Johannesburg 18,178 11,328,203
KwaZulu-Natal Pietermaritzburg Durban 94,361 10,819,130
Limpopo Polokwane Polokwane 125,754 5,554,657
Mpumalanga Nelspruit Nelspruit 76,495 3,657,181
North West Mafikeng Rustenburg 104,882 3,253,390
Northern Cape Kimberley Kimberley 372,889 1,096,731
Western Cape Cape Town Cape Town 129,462 5,287,863

Ethnic groups:

a. 79.5% Black
b. 9.0% White
c. 9.0% Coloured
d. 2.5% Asian

Facts:

a. Total area 1,221,037 km2 (ranks 25th in world)
b. Population 50,586,757 (ranks 24th in world)
c. Total GDP $505.214 billion (ranks 26th in world) – in Purchasing Power Parity
d. Per capita GDP $10,243 (ranks 71st in world) – in Purchasing Power Parity
e. HDI Index: Ranks 123rd in the world (India ranks 134th)
f. Currency: Rand

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Languages:

South Africa has eleven official languages: Afrikaans, English, Ndebele, Northern Sotho, Sotho, Swazi,
Tswana, Tsonga, Venda, Xhosa, and Zulu.

Religion:

Christians accounted for 79.7% of the population, members of other Christian churches accounted for
another 36% of the population, Muslims accounted for 1.5% of the population, Hindus about 1.3%, and
Judaism 0.2%. 15.1% had no religious affiliation, 2.3% were other and 1.4% was unspecified.

Food:

South African cuisine is heavily meat-based where beef was considered the absolutely most important and
high status meat, with some of the best vineyards to complement the meal. Black South Africans enjoy not
only beef, but mutton, goat, chicken and other meats as a centrepiece of a meal. On weekends, many Black
South African families, like white South Africans, have a "braai," and the meal usually consists of "pap and
vleis," which is maize porridge and grilled meat. Eating meat even has a ritual significance in both traditional
and modern Black South African culture. For weddings, initiations, the arrival of family members after a long
trip and other special occasions, families will buy a live animal and slaughter it at home, and then prepare a
large meal for the community or neighbourhood. Participants often say that spilling the blood of the animal
on the ground pleases deceased ancestors who invisibly gather around the carcass. On holiday weekends,
entrepreneurs will set up pens of live animals along the main roads of Black townships -- mostly sheep and
goats -- for families to purchase, slaughter, cook and eat. Beef being the most prized meat, for weddings,
affluent Black families often purchase a live steer for slaughter at home. Vegetarianism is generally met with
puzzlement among Black South Africans, although most meals are served with vegetables such as pumpkin,
beans and cabbage. Foreign visitors to South Africa should be aware that South Africans are so carnivorous
that inviting South Africans to dinner and serving a vegetarian meal may be interpreted as an insult even by
sophisticated urban people.

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Climate:

The climatic zones vary, from the extreme desert of the southern Namib in the farthest northwest to the
lush subtropical climate in the east along the Mozambique border and the Indian Ocean. From the east, the
land quickly rises over a mountainous escarpment towards the interior plateau known as the Highveld. Even
though South Africa is classified as semi-arid, there is considerable variation in climate as well as topography
with an annual rainfall of 760 mm (29.9 in), Winters are cold, although snow is rare with temperatures as
low as −15 °C and summers have hottest temperatures of 50 °C maximum.

Political turmoil history and tribal culture: Nelson Mandela and other national leaders formed the
policy of the nation and white and black population, opposition to apartheid and racial
discrimination:

Identity pass for blacks:

With the enactment of apartheid laws in 1948, racial discrimination was institutionalized. Race laws
touched every aspect of social life, including a prohibition of marriage between non-whites and
whites, and the sanctioning of ``white-only'' jobs. In 1950, the Population Registration Act required
that all South Africans be racially classified into one of three categories: white, black (African), or
coloured (of mixed decent). The coloured category included major subgroups of Indians and Asians.
Classification into these categories was based on appearance, social acceptance, and descent. For
example, a white person was defined as ``in appearance obviously a white person or generally
accepted as a white person.'' A person could not be considered white if one of his or her parents
were non-white. The determination that a person was ``obviously white'' would take into account
``his habits, education, and speech and deportment and demeanour.'' A black person would be of
or accepted as a member of an African tribe or race, and a coloured person is one that is not black

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or white. The Department of Home Affairs was responsible for the classification of the citizenry.
Non-compliance with the race laws were dealt with harshly. All blacks were required to carry ``pass
books'' containing fingerprints, photo and information on access to non-black areas.

In post-apartheid South Africa, unemployment has been extremely high as the country has
struggled with many changes. While many blacks have risen to middle or upper classes, the overall
unemployment rate of blacks worsened and poverty among whites, previously rare, increased.
Idea of homogeneity is paramount for South Africa because it remembers lost accounts of identity,
shaped by a common heritage of suffering. The African National Congress (ANC) is the new
dominance in post-apartheid South Africa and its ideological aim is to find a way to represent its
entire people, both black and white equally, while correcting the racial inequalities of the past.
Having set the stage for creating a discourse of sameness through its “building a rainbow nation”
campaign, it must now find the means to generate this Culture while simultaneously providing
spaces for differences in culture (not just race, but ethnicity, religion etc). “The Rainbow Nation”
campaign therefore celebrates the numerous cultures, ethnicities and religions of the peoples of
South Africa.

Tribal Dance:

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Resource rich country: Endowed with natural resources and also strategic location from rags to
riches, opportunities in sea trade serves as link to the history of Cape Town:

In terms of biological diversity, South Africa ranks third in the world. The country has 68 vegetation
types classified into 7 biomes, from semi desert areas to and alpine forests. Two internationally
recognised biodiversity "hot-spots" are located in South Africa: the Cape Floristic Kingdom and the
Succulent Karoo. South African coast has over 10,000 species of plants and animals.

Originally, the whole economy was built on mining; approximately 55 different minerals are
produced from more than 700 mines, with gold, platinum, coal and diamonds dominating exports
and revenue earnings. There are also important deposits of iron and copper, while the Midlands
and KwaZulu-Natal have vast plantations of timber that are the basis for a multi-billion dollar
industry.

Only about 13 percent of South African soil is suitable for cultivation, of which 22 percent can be
classified as high-potential land with some 1.3 million hectares are under irrigation. Still, the
country is not only self-sufficient in almost all major agricultural products, but in a normal year it is
also a net food exporter, thanks to well-developed commercial farming. Exports include raw sugar,
fresh grapes, citrus, nectarines, wine, avocados, plums, maize, black tea, groundnuts, meat,
pineapples, tobacco, wool and cotton. Maize is the largest locally produced field crop and most
important source of carbohydrates for human and animal consumption.

The most immediate challenge to utilising South Africa’s natural resources and consequently to the
country’s economy as a whole is the lack of energy. The main local source of energy is coal. Other
local sources include biomass (such as wood and dung), natural gas, hydropower, nuclear power,
solar power and wind power. South Africa has very little oil reserves and most of its crude oil is
imported.

It is believed that water will increasingly become the limiting natural resource. South Africa is
looking towards other southern African countries for its water, but the risks of international
dependency on such a priority resource are high. South Africa was once a global leader in gold
mining and gold constituted well over fifty percent of South African exports, but the country has
been overtaken by China as the world's number one gold producer. Today, it is a misnomer to call
Johannesburg the city of gold: there is no more gold mining in the city other than the reprocessing
of mine dumps.

In the 1870s and 1880s Kimberley, encompassing the mines that produced 95% of the world's
diamonds, was home to great wealth and fierce rivalries, most notably that between Rhodes and
Barnato, English immigrants who consolidated early 31-foot-square prospects into ever larger
holdings and mining companies. In 1888, Rhodes prevailed and merged the holdings of both men
into De Beers Consolidated Mines Ltd., a company that is still synonymous with diamonds. Today
South Africa is third in production in terms of value and is likely to stay that way for the foreseeable
future.

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Colour of flag reasons significance, long sea coast promote air ways and tourist spot:

The national flag was designed by a former South African State Herald, Mr Fred Brownell, and was
first used on 27 April 1994. The design and colours are a synopsis of principal elements of the
country's flag history. Individual colours, or colour combinations represent different meanings for
different people and therefore no universal symbolism should be attached to any of the colours.
The only symbolism in the flag is the V or Y shape, which can be interpreted as the convergence of
diverse elements within South African society, taking the road ahead in unity.

Coastline:

South Africa occupies the southern tip of Africa, its coastline stretching more than 2,500 km (1,553
mi) from the desert border with Namibia on the Atlantic (western) coast southwards around the tip
of Africa and then north to the border with Mozambique on the Indian Ocean . South Africa's
landscape is dominated by a high plateau in the interior, surrounded by a narrow strip of coastal
lowlands comprising the signature open grasslands and hill country of the south coast, with deep
cut ravines peppered with groves of aloe, and deep tidal estuaries cloaked on either bank with rich
and unsullied riparian forest.

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Top 10 Attractions in South Africa:

1. KRUGER NATIONAL PARK: Experience the bushveld and romance of 'real' Africa
2. CAPE TOWN: Table Mountain, the Waterfront, Cape Point, Robben Island, Beaches, the
Winelands
3. DURBAN: An invigorating blend of India
4. BEACHES: Beautiful, long, lonely beaches on the West Coast or the sultry North Coast to the
most hip and hot in Cape Town
5. GARDEN ROUTE: Gorgeous beaches, rocky headlands, leafy forests and dramatic river cut
gorges, world class golf resorts
6. WINELANDS: A World Heritage Cultural Landscape, the classic Winelands of Paarl
7. EASTERN CAPE: Golden beaches, the Garden Route, Port Elizabeth, East London
8. THE KALAHARI & NAMAQUALAND: Bright carpets of wild flowers in Namaqualand, the black
maned lion of the Kgalagadi Transfrontier Park
9. CULTURAL VILLAGES & TOWNSHIPS: Fascinating and colourful cultural villages
10. DRAKENSBERG: Dramatic mountain range is an awesome scenic destination with
beautiful rock art

Start of SATYAGRAH from Gandhiji’s movement after the infamous train journey to Pretoria; now
the administrative capital:

While travelling by train to Pretoria, Gandhiji experienced his first taste of racial discrimination.
Inspite of carrying first class ticket, he was indiscriminately thrown out of the train by the
authorities on the instigation of a white man. Instead of fleeing from the scene, Gandhiji stayed
back for 21 years to fight for rights of the Indians in South Africa. By May 1894, he had organized
the Natal Indian Congress. In 1896, he returned to India and enlisted support from some prominent
Indian leaders. He then returned to South Africa with 800 free Indians. Gandhiji exercised `self-

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restraint'. His philosophy of SATYAGRAHA by winning the detractors with the peaceful restraint had
begun which ultimately culminated into India achieving Independence from British after a
prolonged freedom struggle. The places he touched are like a museum without walls, from the
thatch-roofed house he shared in Orchards to the home in TROYEVILLE (he lived here with his wife,
Kasturba and their three sons, Manilal, Ramdas and Devdas), from LINKSFIELD RIDGE (between
1909 and 1914, Gandhi stayed on and off with Kallenbach in The Tents) to TOLSTOY FARM (founded
in 1910 and disbanded in 1913 proved to be an ideal laboratory for Gandhi's educational
experiments; Gandhi's objective in this context was to inculcate the ideals of social service and
citizenship through all the activities of children from the earlier formative years) and of course,
around the law courts and Newtown in the inner city, the original “COOLIE LOCATION”. GANDHI
SQUARE; known as Government Square during Gandhi’s time, today it is a major bus terminus and
a prime example of urban regeneration houses statue of Gandhi as a young lawyer on the square,
and information panels about his connection with the area as he appeared here both as counsel
and accused.

Although the movement started by Gandhiji culminated into the union being effectively granted
independence from the United Kingdom in 1931, but the conditions of racial apartheid continued
for ages and was finally disbanded before the turn of the century in 1990. The attributes of a
peaceful freedom struggle can be bestowed on Gandhijis preaching of non-violent ways of protest.

Sports: Rugby, cricket and football, hosting of FIFA World Cup as well as Cricket World Cup:

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Football: The right to host the 2010 FIFA World Cup brings South Africa a unique opportunity that
extends well beyond football. One of the biggest impacts will come from the phenomenal
marketing and communication opportunity it will offer the country and the continent. As world
attention focuses on the first African Word Cup, this is an opportunity for Africans to tell their own
stories and to showcase South Africa and the continent in informing the world that they have much
to offer, that their people are ready to receive the world, ready to host those who come to the
World Cup and that when they come they would receive a wonderfully unforgettable African
experience. The FIFA World Cup was held between 11 June and 11 July (31 days) after Africa was
chosen as the host for the 2010 World Cup as part of a short-lived policy to rotate the event among
football confederations. The bids from African continent were from Egypt, Morocco, South Africa
and a joint bid from Libya and Tunisia, though South Africa had narrowly failed to win the right to
host the 2006 event. The economy got a boost as five new stadiums were built for the tournament,
and five of the existing venues were upgraded, construction costs were expected to be just over
US$1 billion. It also improved its public transport infrastructure within the host cities, including
Johannesburg's Gautrain and other metro systems, and major road networks. The 2010 World Cup
contributed approximately US$5.5 billion to the SA economy and created 415 000 new jobs.

Cricket:

In 1970, the ICC voted to suspend South Africa from international cricket indefinitely because of its
government's policy of apartheid, an overtly racist policy, which led them to play only against the
white nations (England, Australia, New Zealand), and field only white players. This decision
excluded players such as Graeme Pollock, Barry Richards and Mike Procter from partaking in
international Test Cricket. The ICC reinstated South Africa as a Test nation in 1991 after the
deconstruction of apartheid, and the team played its first sanctioned match since 1970 (and its first
ever One-Day International) against India in Calcutta on 10 November 1991.

Dazzle, official mascot of 2003 World Cup:

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Rugby:

The 1995 Rugby World Cup was the third Rugby World Cup and the first major sporting event to
take place in South Africa following the end of apartheid. It was hosted and won by South Africa,
and was the first Rugby World Cup in which every match was held in one country. The International
Rugby Football Board (IRFB, now the International Rugby Board) had only readmitted South Africa
to international rugby in 1992, following negotiations to end apartheid. When the Springboks won
the Rugby World Cup on home turf in 1995, Nelson Mandela donned the No 6 shirt of the team's
captain Francois Pienaar, a white Afrikaner, and the two embraced in a spontaneous gesture of
racial reconciliation that melted hearts around the country. A single moment, and 400 years of
colonial strife and bitterness suddenly seemed so petty.

Music and dance forms, diversity, homogeneity and heterogeneity among the culture:

Music and Dance:

The South African music includes both popular (jive) and folk forms. Pop styles are based on four
major sources, Zulu ISICATHAMIYA singing and harmonic MBAQANGA. South Africa is very diverse,
with many native African Ethnic groups as well as European and Indian peoples. The KHOI-KHOI, for
instance, developed the RAMKIE, a guitar with three or four strings, based on that of Malabar
slaves, and used it to blend KHOI and Western folk songs. The MAMOKHORONG was a single-string
violin that was used by the KHOI in their music-making and dances of the colonial centre, Cape
Town, which rapidly became a melting pot of cultural influences from all over the world. The
penetration of missionaries into the interior over the succeeding centuries also had a profound
influence on South African musical styles plus the later influence of American spirituals, spurred a
gospel movement that is still very strong in South Africa today. UMOJA'S dancers have no formal
training, they are drawn from communities, and many of them would have had their performing
experience in companies like that of Gibson KENTE. In 1897, Enoch SONTONGA, then a teacher,
composed the hymn NKOSI SIKELEL' IAFRIKA (God Bless Africa), which was later adopted by the
liberation movement and ultimately became the National Anthem of a democratic South Africa.
JAZZART, the oldest modern dance company in the country, has long been actively involved in
performing and teaching workshops and classes in disadvantaged communities. Artists like SYLVIA
GLASSER, TOSSIE VAN TONDER, CARLY DIBOKWANE, ADELE BLANK, ROBYN ORLIN, created a new
vocabulary of dance, working with their own companies, directing at FUBA (Federated Union of
Black Artists), and inspiring and nurturing local talent. South Africa's black townships were held in
thrall by what came to be called "BUBBLEGUM" - bright, light dance pop influenced by American
disco as much as by the heritage of MBAQANGA. In the two decades since rock stars such as Paul
Simon and Peter Gabriel enlivened their music with an African tinge, a stereotype has formed,
created by those crossover hits, many charity concerts and "THE LION KING": an ethnographically
rich pageant, politically relevant but somehow separate from the rest of pop.

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South Africa has produced world-famous jazz musicians, notably HUGH MASEKELA, JONAS
GWANGWA, ABDULLAH IBRAHIM, MIRIAM MAKEBA, JONATHAN BUTLER, CHRIS MCGREGOR, and
SATHIMA BEA BENJAMIN. Afrikaans music covers multiple genres, such as the contemporary STEVE
HOFMEYR and the punk rock band FOKOFPOLISIEKAR. Crossover artists such as VERITY and JOHNNY
CLEGG and his bands JULUKA and SAVUKA have enjoyed various success underground, publicly, and
abroad.

Dress and nature of people, gender issues patriarchal or matriarchal society:

Dress:

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South African clothing is the traditional clothing, often vibrantly coloured, worn by the indigenous
peoples of Africa. In some instances these traditional garments have been replaced by western
clothing introduced by European colonialists though distinctive shirts are worn for instance, South
Africa is known for the MADIBA shirt.

Cultural diversity patriarchal and heterogeneous society:

The South African black majority still has a substantial number of rural inhabitants who lead largely
impoverished lives. It is among these people, however, that cultural traditions survive most
strongly; as blacks have become increasingly urbanised and Westernised, aspects of traditional
culture have declined. Urban blacks usually speak English or Afrikaans in addition to their native
tongue. There are smaller but still significant groups of speakers of KHOISAN languages who are not
included in the eleven official languages, but are one of the eight other officially recognised
languages. There are small groups of speakers of endangered languages, most of which are from
the KHOI-SAN family, that receive no official status; however, some groups within South Africa
attempting to promote their use and revival.

Members of middle class, who are predominantly white but whose ranks include growing numbers
of black, coloured and Indian people have lifestyles similar in many respects to that of people found
in Western Europe, North America and Australasia. Members of the middle class often study and
work abroad for greater exposure to the markets of the world.

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Gender roles diversity:

In general, all racial and ethnic groups in South Africa have long-standing beliefs concerning gender
roles, and most are based on the premise that women are less important, or less deserving of
power, than men. Most African traditional social organisations are male centred and male
dominated. Even in the 1990s, in some rural areas of South Africa, for example, wives walk a few
paces behind their husbands in keeping with traditional practices. A minority of ultra-conservative
Afrikaner's religious beliefs, too, include a strong emphasis on the theoretically biblically based
notion that women's contributions to society should normally be approved by, or be on behalf of,
men. English speaking whites tend to be the most liberal group, including on issues pertaining to
gender roles.

20th century economic and political developments presented South African women with both new
obstacles and new opportunities to wield influence. For example, labour force requirements in
cities and mining areas have often drawn men away from their homes for months at a time, and, as
a result, women have borne many traditionally male responsibilities in the village and home.
Women have had to guarantee the day-to-day survival of their families and to carry out financial
and legal transactions that otherwise would have been reserved for the patriarchal society.

Crime rate, law and order, civil society status:

Crime rate:

Crime rates in South Africa is among the highest in the world, each day an average of nearly 50
people are murdered. In addition to these 18,000 murders each year, there are another 18,000
attempted murders. There are extremely high a rate of unemployment in some areas which leads
to a large element of frustration often this sparks violence. The gap between rich and poor is still
widening and it leads to what is seen as relative deprivation where people in the very, very poor
communities, they see wealth which spurs crime. In view of increasing crime, there are junctions
signposted as carjacking black-spots, and there are areas where drivers will avoid stopping at red
lights, particularly at night, preferring the risk of a fine to the risk of hijack. Some of the violence can

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be attributed to the fact that many foreign national work in South Africa where locals face
unemployment and hence attack foreigners, known as Xenophobia.

Law and Order:

The South African Police Service (SAPS) is the national police force of the Republic of South Africa
with 1116 police stations in South Africa is divided according to the provincial borders, and a
Provincial Commissioner is appointed in each province. The 9 Provincial Commissioners report
directly to the National Commissioner. The Constitution of South Africa lays down that the South
African Police Service has a responsibility to prevent, combat and investigate crime, maintain public
order, protect and secure the inhabitants of the Republic and their property, uphold and enforce
the law, create a safe and secure environment for all people in South Africa.

Civil Society:

The South African Constitution is written in plain language. It is also written in gender neutral
language. But perhaps the most notable aspect of the South African Constitution is that it aims to
transform society and respond to our history of inequality and oppression. It is often described as
one of the most advanced and progressive Constitutions in the world. the content of the
Constitution was influenced in a large measure by both the public input as well as the deep
involvement of civil society in the negotiation process. The Constitution also attempts to protect
the continued involvement of the public and civil society in governance in various ways.
Legislatures at national and provincial level are also constitutionally required to facilitate public
involvement in their processes. This relationship is premised on civil society having a crucial role to
play in service delivery and policy-making with the State. Where civil society and government
appear to be committed to the same goals, and where government is largely made up of
longstanding political allies, a relationship of cooperation appears natural. Civil society also has an
important role to play in relation to the work of State institutions supporting constitutional
democracy, such as the South African Human Rights Commission. One of the most difficult issues
facing civil society in post-apartheid South Africa is how to maintain the delicate balance between
supports for the new Government while maintaining sufficient independence from it. Strategies like
collaboration, monitoring, assistance, and even policing of the State are appropriate for civil society
in South Africa if they are needed to achieve that goal.

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Business sentiment, etiquette and environment: promotional activities to attract foreign
businesses:

Business Sentiments:

The industrial sector (which includes manufacturing, construction, agriculture, mining etc.) has
witnessed an increase of business confidence. South African currency was the worst performer
globally among Emerging Market Currencies so far this year, and all because of happening in China.
Asia has replaced Europe as South Africa’s biggest export market, and China now accounts for
almost 30 percent of the country’s exports to the continent.

South African GDP Trend:

Currency Trend (RAND vs USD):

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South African manufacturing production accounts for around 15 percent of the total economy,
which is ranked as an upper-middle income economy by the World Bank. Advanced development is
significantly localised around four areas: Cape Town, Port Elizabeth, Durban, and Pretoria–
Johannesburg, beyond these four economic centres, development is marginal and poverty is still
prevalent. The South African rand is the most actively traded emerging market currency in the
world and was the best-performing currency against the United States dollar (USD) between 2002
and 2005, according to the Bloomberg Currency Scorecard. Main industries can be classified as
mining (world's largest producer of platinum, gold, chromium), automobile assembly, metal
working, machinery, textiles, iron and steel, chemicals, fertiliser, foodstuffs, commercial ship repair.

The industrial centre of Africa, South Africa's abundant supply of natural resources has helped to
generate the largest and best developed economy on the African continent. GDP per capita
(purchasing power parity) ranks the country as one of the 50 wealthiest in the world. South Africa
has immense potential as an investment destination, with a highly developed economic
infrastructure and one of the most promising and vibrant emerging market economies across the
globe.

Working practices in South Africa;

1. Schedule business appointments as far in advance as possible, preferably a month or two
before the intended visit. Always confirm the appointment by calling the day before.
2. Formal meetings and appointments usually begin and end on time. However, you may be
kept waiting a few minutes by certain groups of South Africans who more relaxed in their
time are keeping. Whichever the case, you should always aim to arrive promptly.
3. Generally, working hours in South Africa are Monday to Friday; 8-8.30 am to 5pm. South
Africans very rarely work on Saturdays and Sundays.

Business practices in South Africa;

1. On the whole, titles are not used in South African business settings. However, some
honorary doctorates may wish to be addressed in this way. When addressing a female
colleague, it is advised to avoid using the term ‘Miss’ in business conversations. If the
female’s marital status is not known, it is best to leave those terms out as they may cause
offense.
2. Greeting styles in South Africa vary depending on the ethnic heritage of the South African.
For example, English-speaking South Africans tend to adopt a rather polite and formal
manner of address. Black South Africans are generally less informal and more personal
when greeting those they do not know. The common practice in most cases for an initial
gesture of communication however, is to offer a firm handshake. For female associates, it is
advised to wait for the woman to offer their hand first.
3. Initial meetings for South African companies are about establishing personal rapport and
developing mutual trust, two vital elements in South African business culture. At this stage,
judgments are made before any further business negotiations are conducted. In order to
secure long term business success in South Africa, relationship building and networking are
paramount.

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4. The overall aim during business negotiations in South Africa is to reach a general consensus.
South Africans prefer to see a fair, win-win situation where all sides gain something from
the deal, and for this reason, confrontations and aggressive bartering over prices should be
avoided.

Structure and hierarchy in South African companies;

1. Despite being a somewhat egalitarian society, business people in South Africa have a lot of
respect for senior executives and colleagues who have obtained their position through
diligence and perseverance.
2. In South African companies, decision-making power typically lies with the most senior
person at the top of the company. However, in accordance with African culture, final
decisions are often made following consultation with subordinates.

Working relationships in South Africa;

1. For the most part, South Africans prefer to do business with those they have met previously.
Consequently, formal letters of introduction from a known third party may help you to
reach key decision-makers easily and therefore speed up the business process.
2. A vital part of African culture is respect for one’s ancestors and elders. It is deemed highly
offensive to most South Africans if the proper respect for an elder is not shown, especially in
more rural areas.

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South African Business Etiquette (Do’s and Don’ts);

Do’s Don’ts
Include deadline dates in contracts, as the South Raise your voice or interrupt whilst your South African
African approach to deadlines is particularly casual counterparts are speaking. Both actions lack the
and firm commitments are not often made. personal approach to a business relationship and
therefore may be interpreted as an insult.
Maintain eye-contact at all times, especially when Surprised if your South African business colleagues
shaking hands with your South African business ask what may seem to be personal questions about
colleagues. This is an essential part of developing your way of life after a relatively brief period of time.
trust. Characteristically, South Africans tend to be warm
and friendly people.
Dress conservatively, particularly for initial meetings Show impatience towards decision making. Forcing
with new business associates. deadlines or rushing deals may prove
counterproductive since the pace of business in
South Africa is reasonably slow and protracted.

Indian business houses foray into African businesses with Airtel, Reliance and Vodafone’s bid to
acquire MTN:

South Africa is India's second largest trading partner. Trade between the two countries was $10.6
billion in 2010-11. To boost the country’s trade with the Sub-Saharan African region, the
Government of India launched the “Focus: Africa” programme under the EXIM Policy 2002-07 to
promote bilateral and regional commercial relations with the COMESA Region. Tata Motors and its
rival, Indian car giant Mahindra & Mahindra have made inroads into the South African motor
industry with the recent launch of new vehicles. Tata Africa Holdings, a subsidiary of the Tata
Group, is vying for a controlling stake in South Africa's second telephone network operator worth
more than RANDS 4 billion. Total bilateral trade between India and South Africa is approaching
RAND 6.5 billion, with imports from India at RAND 3.12 billion and exports to India at RAND 3.35
billion. Indian investment in South Africa is estimated at US$100 million.

Africa’s telecom environment has become hugely active in recent years. This activity has been
largely triggered by the rapid take up of mobile services in many African countries. A rapid growth
in mobile subscribers has led to a flurry of interest in the acquisition of African mobile assets by
various operators, both from within and without Africa, as they perceive the region to be one of
last remaining big potential telecom markets. A $22.7 billion deal between India's Bharti Airtel Ltd.
and South Africa's MTN Group Ltd. alone represents about 25 percent of the total telecom M&A
activity in the first half of 2009. The idea is for BHARTI to take a 49 percent stake in MTN, and MTN
to take a 36 percent stake in BHARTI, with a full merger as the ultimate goal. Another very big name
to plunge into the region’s consolidation is Vodafone Group plc which in May 2009 achieved its
long-held ambition of acquiring a controlling stake in South Africa’s largest mobile operator,
Vodacom, previously an equal joint venture with the country’s former incumbent, Telkom. Tata
took a controlling stake in South Africa's second national operator NEOTEL (PTY) LTD in January
2009.

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Cultural similarities between India and South Africa:

South African Indian culture began in 1860 when the first immigrants arrived on board the Truro as indentured
labourers to work on sugar-cane farms in present day KwaZulu-Natal. During the period of British rule, Indian
immigrants brought with them to South Africa the heritage of an ancient caste system. Each caste was a
distinct, exclusive social entity that bound a member from birth to death. The caste system was characterised
by a strict hierarchy and contact between the different castes brought unforgivable disgrace. That those on the
lower rungs of the hierarchy emigrated as indentured labourers is understandable; that any one of elevated
position should choose to do so, despite this involving social contact with those of low caste, even sharing
amenities, is remarkable and indicates how compelling the economic and other factors were. It also reflects
the cultural similarities between Untouchability and Apartheid. Indian culture in South Africa faced struggles in
the face of discrimination until 1994 with the abolition of the Apartheid.

The national dress of India, the SAREE (six yards of unstitched cloth draped to impart grace and elegance) is
to be found on South African street. Indian cuisine is hugely popular with Indian restaurants all over the
country. And the fever for cricket that grips India is very much in evidence in KWA ZULU NATAL, where the
first Indians were introduced.

There are many aspects of cultural similarity between India and South Africa and hence many companies who
feel that as Indian Markets saturate, it is a wise decision scout for niche markets such as South Africa.

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Conclusion:

When working in the global commercial environment, knowledge of the impact of cultural
differences is one of the keys to international business success. Regardless of the sector in which
you operate finance, technology, or computers and consumer electronics; global cultural
differences will directly impact on you and the profitability of your business. Improving levels of
cultural awareness can help companies build international competencies and enable individuals to
become more globally sensitive. This culture-focused study of South Africa would help students in
acquiring international business expertise through cultural interpretation of a different culture.

This country-specific report on gives a comprehensive description of South African business culture
which will help you to interact more effectively with your South African clients and colleagues. Few
other countries offer the business visitor the number of apparent contradictions that can be found
in South Africa. It is difficult to think of another country, anywhere in the world, which contains
such a diverse mixture of first world economic infrastructure and third world poverty. For a country
which is undergoing rapid and unprecedented changes, where many of the old structures (both
economic and social) have been swept away in a maelstrom of post-apartheid adjustments, what is
true in South African business today may not be true tomorrow. By far the biggest change to have
hit South Africa has, of course, been the abolition of the apartheid system and the integration of
the majority black population into the mainstream political system. Although the transition from
apartheid to the current RAINBOW NATION status appears from the outside to have been achieved
relatively smoothly, it would be nice to believe that there are no longer enormous racial tensions
within the country.

Hence to conclude, South Africa provides huge business opportunities to global business but owing
to its unique culture not many businesses are successful in African markets with wide social and
cultural disparities. Hence for a business graduate it is of umpteen importance to know about cross
cultural issues so as to effectively deal with local markets.

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Bibliography:

a. http://en.wikipedia.org/wiki/South_Africa
b. http://www-cs-students.stanford.edu/~cale/cs201/apartheid.comp.html
c. http://unesdoc.unesco.org/images/0000/000024/002428eo.pdf
d. http://www.iwm.at/publ-jvc/jc-11-08.pdf
e. http://www.southafricaweb.co.za/page/natural-resources-south-africa
f. http://www.amnh.org/exhibitions/diamonds/africa.html
g. http://en.wikipedia.org/wiki/South_African_cuisine
h. http://www.info.gov.za/aboutgovt/symbols/flag.htm
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j. http://www.gandhi-manibhavan.org/aboutgandhi/biography_southafrica.htm
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johannesburg
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o. http://www.sacsis.org.za/site/home/
p. http://www.deloitte.com/view/en_GX/global/services/article/58368753f8993210VgnVCM2
00000bb42f00aRCRD.htm
q. http://en.wikipedia.org/wiki/Music_of_South_Africa
r. http://southafricaeconomywatch.blogspot.com/
s. http://www.communicaid.com/access/pdf/library/culture/doing-business-
in/Doing%20Business%20in%20South%20Africa.pdf
t. http://www.africa-business.com/features/india_africa.html
u. http://www.moviuscorp.com/files/news/lightreading-aug09.pdf
v. http://www.essaysbyekowa.com/olmecs.htm
w. http://www.tamilsa.org/cms/scripts/culture1.php
x. http://www.worldbusinessculture.com/

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