Transcript Slide 1
Type your title and date here 00/00/0000 UNCLASSIFIED SOUTH AFRICA Inspiring New Ways Type your title and date here 00/00/0000 UNCLASSIFIED MAP OF THE PROVINCES 9 Provinces: • Capitals: • PTA – Administrative • Cape Town – Legislative • Bloemfontein - Judicial Type your title and date here 00/00/0000 UNCLASSIFIED WHY SOUTH AFRICA? • Economic powerhouse of Africa • Covers just 3% of the African continent and contributes 25% of its GDP • GDP growth rate: 2.1% + large scale infrastructure investment to create growth and jobs • Gateway to other sub-Saharan African markets • 45th most competitive country / ease of Doing Business: ranked 35 out of 183 countries • English is main business language and similar systems and business cultures • Suitable time difference Type your title and date here 00/00/0000 UNCLASSIFIED 4 THE TRADING RELATIONSHIP – OUR GREATEST SYNERGY • Over £9.6 billion annually in bilateral trade • UK in Top 5 trading partners • Local partnerships and Black Economic Empowerment • 4 out of 5 South African companies in Europe are based in the UK • There are opportunities in various sectors for British business such as: Advanced Engineering Food & Drink Agribusiness ICT Creative Industries Life Sciences Infrastructure & Energy Ports Education & Skills Retail Professional Services Type your title and date here 00/00/0000 UNCLASSIFIED 5 SWOT ANALYSIS Strengths Weaknesses • Abundant supply of natural resources • High unemployment • Well-established & modern infrastructure • Economic Integration/Poverty • Well developed financial and legal services • Skills shortage • Strong Legal and Financial frameworks • Infrastructure bottlenecks in energy, transport & water due to lack of govt capacity • Accountability of private institutions • Stock exchange amongst the Global Top 10 • Govt spending on Education in 2012/13 was £16 bn which is 19% of total govt expenditure. • HIV Aids • Crime • Fast growing black middle class Type your title and date here 00/00/0000 UNCLASSIFIED 6 POLITICAL & ECONOMIC CONSIDERATIONS Political • Broad-Based Black Economic Empowerment • Young, relatively stable, multi-party democracy, dominated by one political party • 2012 is an important year for SA politics Economic • Recovered from recession • Prudent macroeconomic policies, targeting infrastructure-led growth • Job creation • Strong business environment attracts investors – according to World Bank survey easiest BRICS country to do business in • Economy is diversified with strong services sector Type your title and date here 00/00/0000 UNCLASSIFIED 7 FOCUS ON EDUCATION • South Africa underwent a major transformation in education following the end of Apartheid in 1994. • Huge inequalities still exist. • Lack of quality teachers, poorly functioning schools, backlog in infrastructure, absenteeism and strong unionisation mean the state system is failing large parts of the population. • Two education ministries, Department of Basic Education (DBE) & Department of Higher Education and Training (DHET). • January 2012 the Government launched its Green Paper on Post- School Education and Training outlining a broad policy for expanding and improving access, strengthening institutions, improving infrastructure, raising the quality of teaching and building coherence between basic education, further education and the labour market. • 50 State Further Education Colleges. • Numerous private and industry institutions. Type your title and date here 00/00/0000 UNCLASSIFIED 8 HOW TO ACCESS THE MARKET • Skills shortage make the opportunities look obvious. But the space is very crowded. • South African solutions, anti colonial sentiments, bolstering own economy, expensive imports. • Local relationships are critical. • Broad Based Black Economic Empowerment (BBBEE) , Preferential Procurement Framework, Preferred Suppliers at Provincial level. • Government is criticised for changing the system too often. • May choose to work with private institutions in the first instance • Sector Education Training Authorities (SETAs) • National Skills Fund • Further Education Training institutes need management skills. • Need to be clear about what you are offering • No quick wins Type your title and date here 00/00/0000 UNCLASSIFIED 9 UKTI IS REPRESENTED IN 3 MAJOR CENTRES FOR BUSINESS Johannesburg (covering PTA), Cape Town and Durban Type your title and date here 00/00/0000 UNCLASSIFIED 10 HOW UKTI SOUTH AFRICA CAN ASSIST YOUR COMPANY Our Services • Bespoke research, market entry advice & introduction to potential partners • In-market programme arranging • Event Management • Targeted functions with key & relevant contacts • Business networking events • Product launches For further information visit • www.ukti.gov.uk/southafrica Ernst & Young Africa Attractiveness – www.ey.com 2012 Africa Attractiveness Report • Grant Thornton Established a presence in SA - www.gt.co.za Type your title and date here 00/00/0000 UNCLASSIFIED 11 KEY EXAMPLES OF UK COMPANIES OPERATING IN SOUTH AFRICA Type your title and date here 00/00/0000 UNCLASSIFIED 12 HMG PROMOTING BRITISH CAPABILITIES AROUND THE WORLD Type your title and date here 00/00/0000 UNCLASSIFIED 13