1. 1 South Africa in the 21st Century: Business or Monkey Business? Lucie M. Newcomb Global Software & Services Marketing The Global LightWorks Foundation hello@globallightworks.org October 2004

2. (c) Lucie Newcomb 20042 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)

3. 3 Running the Numbers: Export & Import YTD* Food and Live Animals 71.68 71.18 Beverages 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 2,101.2 Machinery and Transport Equipment 844.41 498.42 Misc 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

4. (c) Lucie Newcomb 20044 KEY PROSPECTS Equipment & Scientific Instruments Security-related Products Chemicals Professional Services (except Legal, Acctg)

5. (c) Lucie Newcomb 20045 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

6. (c) Lucie Newcomb 20046 WHAT’S WORKING Very stable currency, low debt Good Political Stability/Low Risk Expanding markets/trading options

7. (c) Lucie Newcomb 20047 WHAT’S CHALLENGING High Crime rates/personal violence Black Empowerment (BEE) Bumps Transformation as Evolution

8. (c) Lucie Newcomb 20048 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

9. (c) Lucie Newcomb 20049 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

10. (c) Lucie Newcomb 200410 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

11. 11 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

12. 12 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

13. 13 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

14. 14 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

15. 15 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

16. 16 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

17. 17 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

18. (c) Lucie Newcomb 200418 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)

19. (c) Lucie Newcomb 200419 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

20. (c) Lucie Newcomb 200420 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