Introduction

Twelve years after the historic first general elections that resulted in democracy, South Africa has been a political and economic success story. With a stable political system, robust civil institutions, a consistent growth rate and very respectable investment ratings, South Africa has enjoyed due attention by US businesses. It deserves more. South Africa is unlike the rest of Africa. With first world infrastructure, communications and tertiary industries, South Africa is eminently placed to lead the whole southern African region to the next level in international trade and commercial opportunities.

There are already over 600 US companies represented in South Africa. Established and new U.S. entrants need to carefully explore and develop the local market for outright sales, joint venture and licensing opportunities. At the same time, the country is a logical site for global corporate positioning on the final commercial frontier, the African continent.

Now is the time for US companies to prepare their business development plans in southern Africa, before the US - SACU Free Trade Agreement (FTA) due to be signed in 2005, opens up the market for even more US exports.

A Stepping Stone Into Sub-Saharan Africa
Accessing the South African market is also a cost-effective means of gaining entry to the SACU (Southern African Customs Union: South Africa, Namibia, Botswana, Lesotho and Swaziland) as well as SADC (Southern African Development Community: Angola, Botswana, Democratic Republic of Congo (DRC), Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe) markets. With its financial, management and transportation infrastructure, South Africa is the logical conduit for most commercial activities in the region. Retailing, channels of distribution, after sales service, as well as continent-wide strategic planning and project management are logically maintained from South Africa. Increasingly, foreign companies are moving their African head offices from London or Paris to Johannesburg, both for financial and practical reasons. Now is the time to consider doing business in South Africa.