Post by account_disabled on Mar 11, 2024 4:38:54 GMT -5
Despite slowing growth and numerous threats to internal stability, South Africa offers numerous market opportunities for the global entrepreneur ; The country, with the highest ranking of the BRICS in ease of doing business according to the Doing Business 2015 report, has among its objectives to promote the activity and development of sectors such as land transport, maritime transport and the exploration of underwater deposits, alternative energies and the improvement of its energy infrastructure, ICTs and the tourism industry. The cheap rand is also expected to contribute, together with the international prospects for economic improvement, to greater export movement.
Entering negotiations: business culture.
The common characteristic of the various business segments in South Africa is that they must see commitment to the business relationship; As we indicated previously, contacts are very important.
They also need to see on the foreign side a good understanding of the situation on the ground, its background and the impact of socio-economic and cultural/racial differences (not limited to the color divide) on the evolution and day-to-day business day; Despite this whole situation, it is also not advisable to ignore the weight of the humanist concept Ubuntu , generally respected as a fundamental value in the ethos of South Africa, and its role in reaching solutions through the spirit of community, collaboration and solidarity; This concept, even with all the flaws in its application, has played an important role in the country's reorganization efforts after apartheid , a task that seemed impossible at the time.
The business environment is made up Portugal Mobile Number List primarily of Afrikaner businesspeople (particularly in rural and agricultural areas) and of English and Scottish descent, whose communication and negotiation patterns can present significant differences. The same thing happens with black executives and officials, who in turn belong to different ethnic groups with their own characteristics; The two majority, as previously indicated, are the Zulus located mainly in the western region of the country; and the Xhosa, a group subdivided into various ethnic groups, and to which a large number of key figures in the history and current events of South Africa belong.
Afrikaner executives are usually direct in their dealings, including expressing disagreement or giving refusals; Speaking your mind openly is a valued quality in Afrikaner culture. At the other end of the spectrum, black cultures are traditionally less given to confrontation within the work team, expressing a direct “no,” or airing negative circumstances to outsiders in the group.
Meetings usually start and end within the established time. Synthesis and clarity in proposals is valued, and it is not advisable to abuse marketing concepts, particularly when dealing with Afrikaner executives. Negotiations are progressing slowly, in part because of the vertical hierarchy of decision-making.
In general, South Africans are not given to haggling, and although it is always advisable for the offers to have room for some adjustment, the final price should not be set too far from the initial offer. Even if they are reluctant to give in at first, the negotiation process should be approached as a collaborative effort where everyone gets something; Aggressive sales techniques, squeezing concessions or haggling down to the last cent are frowned upon, and may cause the South African side to lose interest. They often do not hesitate to be the first to abandon the deal if they judge that the net results do not suit them.
Contracts and agreements are generally respected as stated, although the unique and changing circumstances of the business environment also require some flexibility, particularly in delivery times. The business relationship is often the main support for the fulfillment of contracts.
South Africans are quite fond of outdoor activities, and company social gatherings often consist of attending a sporting event (almost always a good topic to break the ice outside of work), excursions, or a braai (barbecue). ) traditional of the country, which are sometimes celebrated in private homes; In the latter case it is advisable to bring a detail to the hosts. It is common to do business around a restaurant table (usually at dinner), and in general customs in urban areas do not differ much from those in Europe.
Other aspects to take into account. Opportunities.
Following the expiration of several agreements with various EU countries (among which is Spain), investments made prior to the expiration date (12/23/2013 – check at comercial.es/agreements) are protected for an additional period of 10 years; After that date they will no longer be under the protection of said agreement, which guarantees compensation in the event of expropriation or damages suffered by investors. Other current trade agreements include the Southern African Customs Union, the CDAA Free Trade Agreement, and the SACU – EFTA/EFTA Free Trade Agreement.
The EU as a whole is South Africa's largest trading partner in terms of exports and imports; Separately, China is the main commercial supplier and main customer, followed by Germany. There is also an important commercial exchange with the countries belonging to the SADC, the US and Saudi Arabia.