DOING BUSINESS IN

SOUTH AFRICA
Nanda Fikri
K2212055
Noviana K.
K2212056
Novita Dewi
K2212057
Nur Amalina M. K2212058
Prayogik Arga
K2212059
Puspa Kurnia D. K2212060

How to start business in

South Africa?
Before

starting

Knowing your reasons to start a business there

Knowing your reasons not to start a business there
After you know what the result is, you can decide the
business structure to use in order to run your business

Sole Proprietor
Close Corporation
Private Company
Make a business plan

 Lets

get started

Step 1 is to create and register your company

Step 2 is to open a bank account
Step 3 is to start trading
Develop your own business
There are many free and low cost services out there
that can greatly assist the small business owner in
becoming more productive and profitable; you can
advertise your own business by giving newsletter,
creating a good website, or advertisement on TV.

Knowing your problem you may find there

Risk and the impact in South Africa you

have to know
Political Risk
One Party dominates politics Insufficient transparancy
State as Stake holder
Regional Instability Weak

Undermines investor
confidence
Capacity to enforce law

Corruption due to Conflict

Liability and reputation,
of Interest
uncertainty in
procurement practices

Economic
Slow economic growth weaker competitive
advantage
Critical unemployment strenghten populism, weaker
levels
free market
Inadequate liberalization over regulated sector
Black Economic
Empowerment
and regulation
Infrastructure

uncertainty re-current and

future government intervention

Supply chain concern

Operational
Labor market rigidity Increased cost, lower productivity
Over-regulation
HIV/AIDS pandemic Increase cost, HR concern, liability
exposure, societal instability
Dangerously high crime level Increased cost,
compromise safety of
personnel
Financial
High inflation, high interest high in operational cost and cost
rates
of capital
Vulnerability to systemic crises Unanticipated losses,
undermines
investor confidence

CONVERSATION ETIQUETTE

The simplest part of a meeting should be the

introduction, but in reality this can be the most complex
in South Africa. In African and Afrikaans culture a man is
introduced first. Knowing who fits into which box may be
indicated by the name .
During recent years, business has become increasingly
casual in South Africa, addressing people by the first
name being more of the norm. Many of the surnames in
Africa are almost unpronounceable, so this saves one
from tongue-tied and potentially embarrassing moments.
In most countries religion and politics are taboo topics,
and this has been very true in South Africas chequered
history. A majority of South Africans are only too happy
to discuss the changes that have taken place

Generally speaking the South Africans are direct (and

often loud) communicators but they are also very aware
of what, how and to whom something is being said.
People will be conscious of what may or may not make
someone uncomfortable. The communication style is
very much dependent on the level of a relationship; the
closer people are the more comfortable they will be with
speaking openly and honestly. Relationships in their
infancy require more tact and diplomacy.
Although the majority of businesses work in English,
there may be occasions where having materials
translated into Afrikaans could make a good impression,
especially if you are working with an Afrikaans company
in areas like Bloemfontein or Pretoria.

GESTURES AND MIMIC

You must avoid:
Thumbs up (sexual harassment): if you stretch your thumbs up to
someone, it means you want to insert your thumb into that
persons anus.
V-Sign (Mocking Code): if you make V-Sign in South Africa it has
similar meaning with putting up your middle finger in America,
because V-Sign is a very rude gesture in South Africa.
Moutza: this is one of the rude gestures that exist in South Africa,
all of this began from the Eastern Roman times where people
throw dirt into the faces of criminals. This hand gesture has a
meaning like that or your face like a shit or other disgusting
thing.
Dont touch someone arms or stand too close to someone.
Dont put your hands in your pockets, on your hips, or cross your
arms in front of you.

OUTFIT AND PERFORMANCE

FORMAL BUSINESS
DRESS CODE FOR MEN

Light shirt
Tie
Dar
k
Suit

Polish
ed
Shoes

FORMAL BUSINESS DRESS

CODE FOR WOMEN

BLAZE
R
SKIR
T

TROUSER
S

HIGH
HEELS

CASUAL

MAYAUGUST

LIKE AND
DISLIKE
MANNER

DO maintain eye-contact at all times

Use formal titles when addressing individuals

Bring the host/hostess a gift, when you are

invited to come their home.

Arrive on time

Appointments are necessary and should be made as far

in advance as possible.

Handshake is the most common greeting

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EXPORT AND IMPORT

South Africa is a sophisticated and promising market.

It has a well developed economic infrastructure and
opportunities in its emerging markets.
Strengths of the South African market include:

large supply of natural resources

well established and modern infrastructure

well developed financial and legal services

fast growing black middle class

The sophisticated and mature nature of the South African

economy is reflected in the mix of economic sectors: primary
(including agriculture, fishing and mining): 13%; secondary
(manufacturing, construction and utilities): 20%; and tertiary
(trade, transport and services): 67%.
While South Africa produces many products of worldclass quality for export, it is also a major importer of diverse
products from most countries.

South Africas primary export commodities

include:
Gold
Diamonds
Platinum
Other metals and minerals
Machinery and equipment
foods like fresh and frozen fish

South Africas primary import commodities

include:

machinery and equipment

Chemicals

Petroleum products

Scientific instruments

Food materials