South Africa

Charles Arcidiacono&

Craig Templeton

South AfricaThe present South African national flag was first flown on April 27, 1994.

Although some individuals may say otherwise but there are “no universal symbolism should be attached to any of the colors.” The only symbolism in the flag is the V or Y Sharpe, which is, “the convergence of diverse elements within South African society, taking the road ahead in unity.”

A new flag was set in motion when Nelson Mandela was released from Prison in 1990.

The evolution of their flag

1912-1928 The Union of South Africa!

This flag was used from 1928-1994. In 1925, they determined they would create a new flag for the country when Afrikaner government took office.

They had multiple campaigns set to come up with a new design. Hired six designers in a contents, then opened to general public.

Location

The area of South Africa is 1,219,912 sq km (471,011 sq mi). South Africa is slightly less than twice the size of the state of Texas.

It is bounded on the N by Botswana and Zimbabwe (formerly Rhodesia), on the NE by Mozambique and Swaziland, on the E by the Indian Ocean, on the S by the

confluence of the Indian and Atlantic oceans, on the W by the Atlantic Ocean, and on the NW by Namibia.

Quick facts• Population is 50 million

– 0-14 years is 29% of population– 15-64 years is 66% of population– 65 years and older is 5%

• It is the worlds 26th largest country by population

• It is the worlds 24th largest country by land

• They have three capital cities!– Legislative capital is Cape Town– Executive capital is Pretoria– Judicial capital is Bloemfontein

History• Dutch traders landed at the southern tip of modern day South Africa in

1652 and established a stopover point on the spice route between the Netherlands and the Far East, founding the city of Cape Town.

• After the British seized the Cape of Good Hope area in 1806, many of the Dutch settlers (the Boers) trekked north to found their own republics. They discovered diamonds (1867) and gold (1886) and it spurred wealth and immigration.

• The Boers resisted British encroachment but were defeated in the Boer War (1899-1902). Although the Boer’s were defeated they ruled together with the British, the area was now called the Union of South Africa. The Boer’s were also now know better known as the Afrikaners.

• Recap: Dutch Settlers – Became Boers – Became Afrikaners

History Part 2: Nelson Mandela• In 1948 the National Party was voted into power and instituted a policy

that separated development of the races. This favored the white minority at the expense of the black majority.

• The African National Congress (ANC) led the opposition and many of their top leaders were placed in prison for decades. Leader was Nelson Mandela.

• After years of internal protests and boycotts by some Western nations they were able to negotiate a peaceful transition to majority rule, freeing these leaders.

• The first multi-racial elections in 1994 brought an end to the old era and ushered in majority rule under an ANC-led government by Nelson Mandela.

Presidents/Politics• President – Head of State and Head of Government…Prime Minister• Unitary Parliamentary Republic• Nine provinces – Provincial Legislatures• Presidents since the new constitution.

Nelson Mandela – 1994Thabo Mbeki - 1999Kgalema Motlanthe - 2008Jacob Zume - May 2009

• Parties…African National Conference (ANC) – 65%Democratic Alliance (DA) – 17%Congress of the People (COPE) – 8%Inkatha Freedom Party (IFP) – 5%

Languages & Religions

Language• There are 11 official languages

with English being the most commonly used for business and commercial purposes.

• IsiZulu – 23.82%IsiXhosa – 17.64%Afrikaans-13.35%Sesotho sa Leboa – 9.39%Setswana – 8.2%English – 8.2%2001 Data

Religion• Christianity – 73.52• African Traditional Religion - 15• Non Religious – 8.08• Islam – 1.45• Hinduism – 1.25

http://en.wikipedia.org/wiki/Religion_in_South_Africa

Black/White• http://www.imdb.com/video/screenplay/vi216597529/

• Black African = 79%• White = 9.6%• Colored = 8.9%• Indian/Asian = 2.5%

Population Diversity

79

9.68.9 2.5

Black African White Colored Indian/Asian

Transportation• Airports 578 Ranks 11th in the world. The US has 15,079 and ranks 1.• Railways ranks 14th in the world.• Roadways ranks 18th in the world.• Ports - Cape Town, Durban, Port Elizabeth, Richards Bay, Saldanha Bay• Roadways: Paved 73,506km versus Unpaved 288,593km

Picture on left. The Braamfontein skyline seen from across the Johannesburg Station shunting grounds.

Picture Below: The Nelson Mandela Bridge stretches across trains in the Johannesburg Station shunting grounds, linking the business districts of Braamfontein and Newtown.

Natural Resources• Minerals!!!

Gold, chromium, ntimony, coal, iron ore, manganese, nickel, phosphates, tin, uranium, gem diamonds, platinum, copper, vanadium, salt, natural gas

GDP

• Labor Force - agriculture: 9%, industry: 26%, services: 65% (2007 est.)

• GDP 505.3 Billion (26) – US 14 Trillion• GDP Per Capita - $10,300 (107) – US $46,000• 24% Unemployment rate

www.cia.gov

Money• Rand (ZAR)…sometimes referred to as a “buck”• Notes or bills are R200, R100, R50, R20, R10• Coins are R5, R2, and R1• Cents are 50c, 20c, 10c, 5c, 2c, 1c• Favorable exchange rate for the US, EU, and Australia. As of

11/19/10…$1 US = R7.003$1 EUR = R9.528$1 AUS = R6.902

Taxes

• South African Revenue Service – SARS• Income Tax – Both personal and corporate.

Corporate tax rate is 28% with some breaks for smaller businesses. Personal tax rate goes from 18% to 40%.

• Value Added Tax (VAT) – This is a tax on all goods and services. 2nd largest income producer for the country next to Income Tax. Rate is 14%.

Industry

• South Africa is the world's largest gold, platinum, manganese, chromium, vanadium, alumino-sillicates and titanium producer.

• ISCOR – Iron and Steel Corporation of South Africa• Automotive – Mid 2000’s showed great sales volume in

the country. Industry wise still is integral part of economy due to exports. Accounts for around 10% of the country’s exports.

• Other industries - metalworking, machinery, textiles, chemicials, fertilizers, foodstuffs, and commercial ship repair.

Exports/Imports• South Africa’s trade, exports and imports are heavily dependent on the nation’s

natural resources and the government’s highly liberal trade incentive. 2009 showed a trade deficit of $2.3 billion.

• Import commodities include machinery and equipment, chemicals, petroleum products, scientific instruments, and food materials. $70.24 billion in 2009, down from $90.57 billion in 2008

• Export commodities include gold, diamonds, platinum, other metals and minerals, machinery and equipment. Exports were worth $67.93 billion in 2009, down from $86.12 billion in 2008

• Primary trade partners include US, Germany, China, and Japan

http://www.economywatch.com/world_economy/southafrica/export-import.html

Scores• PDI -49 Which is somewhat middle of the road but tends to be less

dependent on bosses

• IDV- 65 Individualistic

• Masculine – 63 tends to be a masculine society

• Uncertainty Avoidance – 49 not afraid of uncertainty

Food• Braais – Barbeques• Biltong – Dried Meat• Milktert and Koeksisters – A sweat, doughy treat• Skop – The boiled head of a cow, sheep, or goat• Early South Africans - Tortoises, crayfish, coconuts, and squash to

survive.• Beskuits – A dried sweetened biscuit• Early Agriculture – Mealies (corn), squash, yams, sweet potatoes• Wine! – The Western Cape

Overall a diverse selection of food originating from the vast influences of natives and settlers from many cultures. Also good variety of meats, seafoods, and crops.

Climate

• Generally speaking the country is warm and dry.• South Africa's summers (November to March)

are warm with average temperatures around 77 Fahrenheit (25 C).

• Winters (June to August) can get cold especially at night with temperatures averaging around 50 Fahrenheit (10 C).

• Western cape’s rainy season is the winter while rest of country gets rain in summer.

Sports

• Football – Bafana Bafana • Rugby – 1995 and 2007 World Cup Springboks• Cricket• Golf - Bobby Locke, Gary Player, Ernie Els and

Retief Goosen

Business in South Africa

Hooters in South Africa

Chanticleer Holdings, Inc headquartered in Charlotte, NC partnered with S. G. Shaw Foods in South Africa to bring the Hooters name to South Africa.

President of S. G. Shaw Food was confident Hooters would be a hit because three things never go out of style, women, beer, and good food.

Two locations:1. Durban - opened in December 2009.

Known as Hooters on the Rocks.

2. Johannesburg - opened in September 2010. Largest Hooters in the world. Known as Hooters on the Buzz.

Appearance• South Africans of Urban cultures generally wear western dress.

• Dress well in public, it will be expected by your South African host.

• African women wear a sari.

Behavior• Gift giving is not the norm in business.

• Do not present gifts with the left hand.

• Use either both hands or the right hand when presenting gifts.

• Gifts will be opened upon receipt.

• Business meetings can be held over lunch or dinner in a good restaurant.

• Meals at the home of a white South African will include a barbecues by the pool- called a braaivleis (Afrikaans for roasted meat) or braai.

Communications• Handshake is most common greeting. There are a variety of handshakes

between ethnic groups.

• Use titles and surnames to address people.

• Appointments should be made starting at 9AM

• Do not rush deals. South Africans are very casual in their business dealings.

• Business cards have no formal exchange protocol.

• South Africans prefer a “win-win” situation.

Impact of FIFA World Cup

• Has South Africa hosted big events before?– 1995 Rugby World Cup– 2003 Cricket World Cup– 2006-2009 A1 Grand Prix – 2009 Indian Premier League– 2009 FIFA Confederations Cup– 2010 FIFA WORLD CUP

Impact of FIFA World Cup• Estimated the 2010 Fifa World Cup provided 695,000 jobs.

• Projected 373,000 foreign tourists visited

• 10 stadiums across the country

South Africa means business• SA maintains score for doing business.

– Consistent ratings as an investment market as well as a strong ranking against emerging markets, specifically the BRIC nations.

• New Incentives to boost manufacturing– Government increases tax incentives as part of new program aimed at

boosting SA manufacturing sector.– They also recently had a public debut of the Airbus A400M military transport

aircraft, which includes locally made components. This proves that SA manufacturers can hold their own with the best in the world.

• SA and China ink trade deals– Recently inked a series of trade and energy deals to ensure the two continue

with the business relationship for years to come.– China, which last year overtook the US to become SA’s largest export

destination.

Shark!!!

• One thing it keep in mind when visiting!

http://www.youtube.com/watch?v=ihxNrU04xuQ

Test

1. During the discovery of SA, why did Dutch settlers choose to stop over there?

2. What is the name of the island where the most shark attacks in the world are reported?

3. How many capital cities does SA have?