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South Africa in the 21st Century:. Business or Monkey Business? Lucie M. Newcomb Global Software & Services Marketing The Global LightWorks Foundation [email protected] October 2004. Just the Facts. Population:43,586,200 (2003) Provinces: 9

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South africa in the 21st century l.jpg

South Africa in the 21st Century:

Business or Monkey Business?

Lucie M. Newcomb

Global Software & Services Marketing

The Global LightWorks Foundation

[email protected]

October 2004


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Just the Facts

Population:43,586,200 (2003)

Provinces: 9

Languages:11 official languages, including Afrikaans, English, Ndebele,

Pedi, Sotho, Swazi, Tsonga, Tswana, Venda, Xhosa and Zulu

Area:1,219,912 sq km

GDP:$427.7 bil

Currency: Rand (ZAR)

(c) Lucie Newcomb 2004


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Running the Numbers: Export & Import YTD*Food and Live Animals 71.68 71.18Beverages and Tobacco 12.96 24.89 Crude Materials, Inedible, No Fuels 33.41 209.37 Mineral Fuels, Lubricants & Matls 47.85 30.93 Animal/ Veg Oils, Fats & Waxes 4.52 0.45 Chemicals/ Related Products, N.E.S. 261.16 206.69 Manufactured Goods by Material 160.05 2,101.2Machinery and Transport Equipment 844.41 498.42Misc Manufactured Articles 171.58 157.85 Commodities & Transactions, N.E.S. 84.19 98.76 TOTAL 1,691.81 3,399.84*US Dept of Census


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KEY PROSPECTS

• Equipment & Scientific Instruments

  • Security-related Products

  • Chemicals

  • Professional Services (except Legal, Acctg)

(c) Lucie Newcomb 2004


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INFLUENCING FACTORS

  • 1st and 3rd World conditions in parallel

    • -great infrastructure (Banks, JSE, Utilities, Law)

    • - high illiteracy rate; many in impoverished conds.

  • Heavy Commonwealth/EU influence

    • - The Queen’s English+/-

    • - EU Business standards (A4 paper, bureaucratic)

  • Recovering from isolation/apartheid

  • Price- (NOT value-) driven

  • HIV-AIDS Pandemic-The Corporate Side

  • (c) Lucie Newcomb 2004


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    WHAT’S WORKING

    • Very stable currency, low debt

    • Good Political Stability/Low Risk

    • Expanding markets/trading options

    (c) Lucie Newcomb 2004


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    WHAT’S CHALLENGING

    • High Crime rates/personal violence

    • Black Empowerment (BEE) Bumps

    • Transformation as Evolution

    (c) Lucie Newcomb 2004


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    Life Standard Measurements- 2004*LSM 1 (9.1%)

    •DEMOGRAPHICS: Female 16-24, 50+

    •SCHOOLING: Primary Completed

    •HOME: Rural •Traditional Hut

    •INCOME: R879 per month

    •GENERAL: Little access to services.Little ownership of durables, except radio sets

    •ACTIVITIES: Gardening

    *SAARF 2004

    (c) Lucie Newcomb 2004


    Life standard measurements 2004 lsm 2 12 7 l.jpg

    Life Standard Measurements- 2004*LSM 2 (12.7%)

    •DEMOGRAPHICS: Male •16 - 34

    •SCHOOLING: Primary Completed

    •HOME: Rural

    •INCOME: R1 068 per month

    •MEDIA: Radio: African Language

    •GENERAL: Water on plot. Little ownership of durables, except radio sets and stoves

    •ACTIVITIES: Gardening

    *SAARF 2004

    *SAARF 2004

    (c) Lucie Newcomb 2004


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    Life Standard Measurements- 2004*LSM 3 (14%)

    • DEMOGRAPHICS: Female 16 - 24

    • SCHOOLING: Up to some high school

      • HOME: Rural

    • INCOME: R1 408 per month

    • MEDIA: Radio: ALS stations •TV: SABC 1

    • GENERAL: Electricity, water on plot •Minimal ownership of durables, except radio sets and stoves

    • ACTIVITIES: minimal

      *SAARF 2004

    (c) Lucie Newcomb 2004


    Life standard measurements 2004 lsm 4 14 7 l.jpg

    Life Standard Measurements- 2004*LSM 4 (14.7%)

    •DEMOGRAPHICS: 16 - 49

    •SCHOOLING: Up to some high

    HOME: some Urban

    •HOME: R1 774 per month

    •MEDIA: •Radio: ALS stations, Metro fm, P4 Radio KZN 99.5, •TV: SABC 1,2, ETV

    •GENERAL: Electricity, water on plot, flush toilet •TV sets, hi-fi/radio set, stove, fridge

    •ACTIVITIES: - stokvel meeting, lottery

    *SAARF 2004


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    Life Standard Measurements- 2004*LSM 5 (13.1%)

    •DEMOGRAPHICS: Female 25-49

    •SCHOOLING: to Matric

    •HOME: Urban

    •INCOME: R2 427 per month

    •MEDIA: Radio: many TV: SABC 1,2,3+

    •GENERAL: Electricity, water on plot, flush toilet •TV sets, hi-fi/radio set, stove, fridge

    •ACTIVITIES: exercise, painted interior of house, stokvel meeting, tapes/ lottery tix

    *SAARF 2004


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    Life Standard Measurements- 2004*LSM 6 (14 %)

    •DEMOGRAPHICS: Male 25-49

    •SCHOOLING: Matric+

    •HOME: Urban

    •INCOME: R4 075 per month

    •MEDIA: Radio: community TV: SABC 1,2,3

    •GENERAL: Electricity, water on plot, flush toilet, many durables + cell phones

    •ACTIVITIES: - many

    *SAARF 2004


    Life standard measurements 2004 lsm 7 6 2 l.jpg

    Life Standard Measurements- 2004*LSM 7 (6.2 %)

    •DEMOGRAPHICS: Male 25+

    •SCHOOLING: Matric+

    •HOME: Urban

    •INCOME: R6 455 per month

    •MEDIA: Radio - wide range TV: SABC SABC 1,2,3, e.tv, M-Net •Daily/Weekly Newspapers, Magazines • internet 4 weeks

    •GENERAL: Electricity, water on plot, flush toilet •TV sets, hi-fi/radio set, stove, fridge •ACTIVITIES: - many

    *SAARF 2004


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    Life Standard Measurements- 2004*LSM 8 (4.8 %)

    •DEMOGRAPHICS: Female 35+

    •SCHOOLING: Matric+

    •HOME: Urban

    •INCOME: R8 471 per month

    •MEDIA: Radio: wide range TV: SABC1,2,3, e.tv, M-Net, DStv

    •GENERAL: •Full access to services •Own many durables, incl. DVD, PC and satellite

    •ACTIVITIES: - Many

    *SAARF 2004


    Life standard measurements 2004 lsm 9 5 9 l.jpg

    Life Standard Measurements- 2004*LSM 9 (5.9 %)

    •DEMOGRAPHICS: Male 35+

    •SCHOOLING: Matric+

    •HOME: Urban

    •INCOME: R11 566 per month

    •MEDIA: •Radio:many •TV:SABC 2,3, e.tv, M-Net, DStv •Daily+Newspapers, Magazines • internet 4 weeks

    •GENERAL: Full access to services •Owns many durables, •Incl. PC, DVD and satellite

    •ACTIVITIES: - many but not stockvel mtgs

    *SAARF 2004


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    Life Standard Measurements- 2004*LSM 10 (5.3%)

    •DEMOGRAPHICS: Female, Male 35+

    •SCHOOLING: Matric +

    •HOME: Urban

    •INCOME: R18 649 per month

    •MEDIA: •Radio: wide range •TV: SABC 2,3

    etv, M-Net, DStv

    •GENERAL: Full access to services, Own many durables incl DVD, PC, satellite

    •ACTIVITIES: - Many, not stokvel mtgs

    *SAARF 2004


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    KEY PHRASES

    • Hello: -Malo (Xhosa)

      - Mora (Afrikaans)

      - Howzit? (Slang English)

      - Good Day (Standard English)

    • Thank you: - Baye Dankie (Afrikaans)

      - Nkosi (Xhosa)

    • Miscellaneous: - Just Now - 90 minutes+

      - Ubuntu - Consensus/Tribe

      - Braii - BBQ

      - Lekker-great! (Afrikaans)

    (c) Lucie Newcomb 2004


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    CONCLUSION

    Doing Business in South Africa is much like an old African proverb about how to eat an elephant:

    Best done one bite at a time!

    N K O S I

    (c) Lucie Newcomb 2004


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    USEFUL RESOURCES

    • saarf.co.za- SA Ad Research Foundation

    • buyusa.gov/southafrica - US DOC CS

    • southafrica.co.za - All Things S African

    • iol.co.za - SA Daily Newspaper(s)

    • link2southafrica.com - SA Embassy in US

    (c) Lucie Newcomb 2004


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