Business opportunities in South Africa

Areader of this column is requesting for information about South Africa. – are there business opportunities in South Africa? While many of us remember the apartheid policy dominating the South Africa and other places of Africa for many years – there is more to South Africa than this apartheid policy which was a discrimatory race and color policy of the African white immigrants (Afrikaners) against the native Africans. This was the era of racial suppression. Now the apartheid era in Africa is history. South Africa has already been transformed to a place where the whites, the Africans and other races live together peacefully. Transformed to a multicultural nation, so to speak. The famous words of the former president of South Africa, the late Nelson Mandela: Let us build each other.

Today, South Africa is the richest country in Africa. It is also the most populous state in southern Africa as well as the most industrialized state in Africa. Many do not know that South Africa has a developed and well-maintained infrastructure. Its electrical power, telecommunication system, its road network and its banking facilities fall under the first class category. Also, other Asian countries like India, Pakistan, China, and Thailand are doing business with South Africa. Predominantly in the fields of electronic products and garments. The competitive edge of these countries over us is their proximity to the country. The Indian and the Atlantic Ocean is connecting link. The Indian and the Atlantic oceans converge at Cape Point, a place near Cape Town, the legislative capital of South Africa. The absence of direct shipping facilities between our country and South Africa – like what Singapore and Hong Kong have, also increases the cost of doing business with South Africa and lessens our competitiveness vis-à-vis the other Asians.

Marcelino “Lino” Cortez, our Department of Trade and Industry (DTI) Commercial Attaché who was assigned in South Africa for the past six years shared with me the following interesting information about South Africa.

• When President Gloria Macapagal- Arroyo (P/GMA) was Vice-President of the country, she visited South Africa twice. P/GMA was the speaker of global conferences on women;

• South Africa has three capitals: - Pretoria for administrative; Bloemfontein for judicia; and Cape Town for legislative;

• About 60% of all whites and the mixed race people speak the language and the Dutch). However, English is the primary language in secondary schools. The South African English has a unique pronunciation and vocabulary. Other languages include Sotho and Zulu. In short most South Afrikaans;

• Capital equipments are the biggest imports of South Africa are the number one producer of gold. South Africa and other places of South Africa are also historically known for their gold and diamond produce. Remember De Beers? The world-famous marketing outfit for diamonds. De Beers – joint ventures and other networking arrangements with international diamond companies based in other countries like Russia and Australia are the talk of those in the diamond business. Even silver and copper are mined in South Africa ;

• The United States Congress has enacted some years ago the so-called African Growth and Opportunity Act (AGOA). This Act gave the privilege and preference to South Africa and other African countries to ship to the United States its African products – duty free;

• Not many know that Filipinos had exported to South Africa car parts, tuna, garments, mostly baby dresses, furniture, and even holiday decors;

• Like the Philippines and other developing countries, South Africa has also problems on peace and order. Yes, there is also unemployment in South Africa, Car napping too. Even the disease called AIDS has invaded South Africa;

• It was in the 1960s that Filipinos, mostly teachers migrated to Africa. Initially the Filipinos in South Africa. The Filipino migrants finally settled in South Africa. Today, there are about 600 Filipinos in South Africa who are mostly working in garment companies.

• Rarely, if ever, do typhoons and earthquakes visit South Africa. It will be a national calamity if an earthquake – even if the earthquake has only a strength of Intensity 2 will hit South Africa. Simply because of the many underground tunnels of the gold mining industry in South Africa which are usually built 10 kilometers below the ground level;

• While there are other places in Africa where food is frugal – not so in South Africa. There are abundant foods. Fruits especially. Including but not limited to apples, lychees, pears, oranges and mangoes. No wonder fruit juices are exported to the United States under the Us AGOA Act;

• The University of South Africa (UNISA) in Johannesburg, South Africa is world-famous because this university extends correspondence courses to African political prisoners. Johannesburg, where Commercial Attaché Lino Cortez was based during his stint, is the commercial center of South Africa;

• South Africa, which used to be a colony of Great Britain, has maintained to this day its sentimental attachment for the British people;

• While in the yesteryears the Africans worked as laborers in mines, farms and even as domestic’s helpers – this is not the trend today. The Africans are now talking of economic empowerment with confidence. The young Africans today are enrolling in the best of universities abroad.

South Africa is not a rural economy by any standard. Far from it. Even its business structures, policies and laws are strategically placed – its laws on intellectual property rights, on fiscal and monetary policies, its export and import rules, its income tax policies, its labor laws and other business policies. South Africa’s economy, commercial practice and its legal framework are similar with those of North America, Europe and even Australasia. Let us watch south Africa soar to greater economic prosperity.

Have a joyful day! (For comments/reactions please send to Ms. Villafuerte’s email: villafuerte_nelly@yahoo.com).