(Last updated: 9 Sep 2013)
Doing business
Business culture
Business tips
Business meetings tend to be relaxed and informal with South Africans. They are straightforward and their approach to business is similar to Australians.
It is not common practice for business cards to be exchanged at the start of a meeting. Many South Africans will not offer their business cards or will only do so at the end of a meeting, which can be a sign that they are encouraging further discussions. You will also find that many do not have business cards.
It can be difficult to secure appointments in South Africa and contacts may take some time to respond to requests. It can be more productive to send an explanatory facsimile in advance to establish the context for your request before calling them. It is essential to confirm all appointments.
With many companies and all government departments, visitors must sign in and out to gain access to buildings and pass through a metal detector. Time should be allowed for these security procedures. Visitors should check arrangements for visiting buildings and parking, as many areas can be unsafe. The company being visited may ask for the registration number of your car to aid identification and facilitate entry. Transport arrangements should be organised in advance.
It is acceptable and commonplace to refer to groups of people as ‘blacks’, ‘whites’ and ‘coloureds’.
You will often hear South Africans use the phrase ‘just now’ or ‘now’ when commenting on when a task or request will be completed. This does not necessarily translate to mean ‘straight away’ and visitors should try and determine a more exact time.
Setting up in South Africa
Any company incorporated outside of South Africa is deemed a foreign company, irrespective of whether it is a profit or non-profit company or carrying on business in South Africa or not. A foreign company is prohibited from offering securities to the South African public unless it follows the specific provisions of the companies Act, relating to offers to the public.
A foreign company is required to register as an ‘external company’ with the Companies and Intellectual Property Commission (CIPC) if it conducts or intends to conduct business in South Africa. The Companies Act (Section 23) lists a series of activities which will be regarded as conducting business. This list is much broader than the provision in the 1973 Companies Act relating to a ‘place of business’ in South Africa.
Banking and finance
As at the end of December 2010, 33 banking institutions –12 locally controlled, six foreign-controlled, 13 registered branches and two mutual banks – were reporting data to the Bank Supervision Department of the Reserve Bank. There were also 41 international banks with authorised representative offices in South Africa. The banking industry is characterised by a high degree of concentration, with four banks, ABSA Bank Ltd, The Standard Bank of South Africa Ltd, FirstRand Bank Ltd and Nedbank Ltd, dominating the sector.
Links and resources
Government, business and trade
South African Chamber of Commerce and Industry – www.sacci.org.za
South African Government online – www.info.gov.za/aboutsa/index.htm
South African Revenue Service – www.sars.gov.za
Statistics South Africa – www.statssa.gov.za
Strategic Business Services – www.sbs.co.za
Department of Trade and Industry- www.dti.gov.za
International Trade Administration Commission of South Africa - www.itac.org.za
News and media
Business Day – www.businessday.co.za/
Mail and Guardian Online – www.mg.co.za
Times Live – www.timeslive.co.za
Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.