RSA & SADC Markets
Introduction
Marketing of new-technologies and high-end innovation is becoming more and more important with the increasing trend in internationalisation. Having too many choices, marketers of technology driven companies in the European Union (EU) faces the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.
Global Sciences introduces EU companies to the South African (RSA) and other Southern African Development Community (SADC) markets and assists them to enter these markets successfully at low risk and cost. The value activities of Global Sciences enfolds through:
a. Developing tailor-made international strategies for companies
b. Proof the feasibility and viability of international projects
c. Introducing the companies to networks and alliance partners in RSA
d. Develop master roll out plans
e. Assistance during the roll-out phase on the basis of multi-level project management system
Global Sciences is the strategic partner within the client’s company that develop and facilitate globalisation strategies.
The RSA and SADC market
The “Market Potential Index” for emerging markets (2009) reported that RSA and SADC are among the top 20 emerging markets in the world today. Global companies with a presence in RSA all cite numerous advantages for setting up business in the country, from low labour costs to excellent infrastructure - and a base to export products internationally. Jim Myers, president of the American Chamber of Commerce in South Africa, says that nearly 50% of the chamber’s members are Fortune 500 companies, and that over 90% operate beyond RSA’s borders into SADC and other sub-Saharan countries across the continent.
German businesses are upbeat about RSA’s economy, and say investment returns are good, productivity is praiseworthy, and infrastructure cheap. That’s according to the latest annual survey of medium and large-sized German companies operating in RSA, conducted by the Southern Africa German Chamber of Commerce and Industry (2009). The survey, which has been published for the past eight years, finds that nearly all German businesses operating locally - 95% of respondents - consider RSA’s economic climate to be positive.
South Africa (RSA) and the Southern African Development Community (SADC) markets present unique business opportunities as well as the options to export, to license, to form a strategic alliance and joint ventures, or to directly invest in foreign operations.
The South African economy
The economy of South Africa is ranked as a upper-middle income economy by the World Bank, which makes the country one of only four countries in Africa represented in this category, (the others being Botswana, Gabon and Mauritius).
Advanced development is significantly localised around four areas: Cape Town, Port Elizabeth, Durban, and Pretoria/Johannesburg. Beyond these four economic centres, development is marginal and poverty is still prevalent despite government efforts.
Key marginal areas have experienced rapid growth recently. Such areas include Mossel Bay to Plettenberg Bay; Rustenburg area; Nelspruit area; Bloemfontein; Cape West Coast; and the KwaZulu-Natal North Coast.
The South African Rand is the most actively traded emerging market currency in the world. It has joined an elite club of fifteen currencies, the continuous linked settlement (CLS), where forex transactions are settled immediately, lowering the risks of transacting across time zones. The rand was the best-performing currency against the United States dollar (USD) between 2002 and 2005, according to the Bloomberg Currency Scorecard.
Free trading zones
The main goals of SADC are to form common political interests and support greater trade and investment flows between Member States theses include Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. The SADC Free Trade Area (FTA) is a key to achieving these goals. By January 2008 twelve of the fourteen SADC Member States established an FTA. The SADC FTA creates a regional market worth US$360 billion with a total population of 170 million and includes economies growing by up to 7% a year. Angola and the Democratic Republic of Congo are set to join the FTA adding a further US$71 billion and 77 million people to the SADC market.
The combined income of the SADC market is US$431 billion and comprises a total population of 247 million. The RSA is the biggest economy with a Gross Domestic Product (GDP) of US$282 billion, representing 65% of the total SADC market. The largest country in terms of population is the Democratic Republic of Congo with a population of 61 million. GDP per capita also varies widely. For Botswana GDP per capita is US$7,694 per annum while for Mozambique and the Democratic Republic of Congo it is an estimated US$264 and US$166 respectively.
On the 17th of August 2008 SADC member states convened in Johannesburg, South Africa for the 28th Southern African Development Community (SADC) summit of heads of states and government. The summit saw the launch of the SADC FREE TRADE AREA (FTA). This conference is to be held at an important time when businesses, consumers and SME's are excited about the opportunities that the SADC free trade area will bring to the region and to their businesses.
Alliances and networks
Strategic partners in South Africa
- Ngululu Holdings Limited (www.ngululu.co.za)
Networks
- Department Science & Technology (DST) (www.dst.gov.za)
- Department Trade and Industry (dti) (www.thedti.gov.za)
- Industrial Development Corporation (IDC) (www.idc.co.za)
- Small Enterprise Development Agency (SEDA) (www.seda.org.za)
- South African Embassy (Berlin) (www.suedafrika.org)
- Afrika-Verein (www.afrikaverein.de)
Project contact
Manfred Büscher: m.buescher@global-sciences.com