World Country Guide

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. Specialised products such as wine and fruit are exported in large quantities. The industrial sector has traditionally been based on mining. The country has considerable deposits of common minerals such as coal, but also of valuable metals and ores which are in high demand but are scarce everywhere else except the Russian Federation: these include chromium, manganese, vanadium and platinum. 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.
Recently, however, the traditional dominance of agriculture and mining has been supplanted by manufacturing and service industries. Manufacturing industry is concentrated in metal-based industries, mainly steel and heavy engineering, with machinery and transport equipment as the principal products. Manufacturing now accounts for around 20 per cent of total economic output. Some advanced technological industries have also emerged in recent years. In the service sector, both financial services and tourism have expanded rapidly and both are now mainstays 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, by the Government’s insistence on fiscal restraint. The Government has since designed a scheme under which major economic assets – notably the mines – will be transferred to ‘black empowerment entities’ over a 10-year period. The economy is currently somewhat sluggish but expected to pick up in 2004. Inflation is currently 9.9 per cent and annual growth a moderate 2 per cent. Few inroads have been made into the high level of unemployment, officially at 26.7 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.
South Africa is the dominant member of the local Southern African Customs Union (with Botswana, Lesotho, Namibia and Swaziland); it has also 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 usually 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 3800; fax: (11) 446 3847/9; e-mail: info@sacob.co.za; website: www.sacob.co.za); or the Department of Trade & Industry, Private Bag X84, Pretoria 0001 (tel: (12) 394 9500; fax: (11) 254 9406; e-mail: contactus@thedti.gov.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 Town Regional Chamber of Commerce and Industry, 19 Louis Gradner Street, Cape Town 8000 (tel: (21) 402 4300; fax: (21) 402 4302; e-mail: info@caperegionalchamber.co.za; website: www.capechamber.co.za).