Doing Business in the Midst of Cultural Change: South Africa: Specific Industry Analysis - Essay Example

? Doing Business in the Midst of Cultural Change: South Africa: Specific Industry Analysis This paper attempts to analyze the industry in South Africa and in particular discussing the effects of the social change and global economy on that industry. This paper is also aimed at writing an essay in regard to a ten day travel course to South Africa and analysing the industry in the country. The travel started from 6th January, 2012 and ended in 19th January, 2012. The paper is aimed at describing business patterns of two companies in the service sector of the country, Grand Thornton and Deloitte. The paper also argues on several impacts of economic aspects on the service industry of the country in the face of global economic conditions. Doing businesses in South Africa: In the tour I have found that the government of the South Africa with the help of its various departments has been helping the country to increase the level of economic development. This process of improvement of economic structures and conditions has been possible through development of business conditions. I have found that the Department of Economic Development has been responsible for creating positive economic and developmental conditions by implementing various economic policies. These policies have been implemented with expansive and cross-cutting focus in order to increase the potentiality of structures of working mechanisms of various macroeconomic and microeconomic policies. The department collaborated with other departments and created effective mechanisms through use of appropriate economic policies to augment the path of economic development in the country. These policies have not only developed the conditions of economic development, but also created great employment opportunities in the country. The government of South Africa invested a huge budget in developing various economic conditions which have been responsible for developing the conditions of economic growth in the country. The most important feature of this budget allocation is that a huge section of this budget has been allocated in developing conditions of doing businesses in the country and also in developing the economic structure of the country for the purpose of doing businesses. Small, medium and large business organisations have been given significant opportunities in the country to do business in effective and efficient manner and to earn profits. Another major goal of this large investment in developing business perspectives, structures and conditions has been to increase the level of foreign direct investment invested in the country’s economy, which is expected to come out of the profit of those business organisations. This investment is expected to further increase the level of economic development in the country by increasing availability of different goods and services in the country. This further increases the rate of economic growth as well as the rate of growth of employment. Separate sections of budget have been allocated for separate purposes. These sections include policy development works, for which R18.2 million has been invested, augmentation of economic planning and cooperation, for which R25.8 million has been allocated. Investments have also been made for augmenting the level of capital accumulation, for which a total of R44, 8 million has been allocated. Apart from these some other investments are made in development of economic conditions and dialogue, for which 11.2 million has been allocated. Budgets have also been allocated to small business funding which has created significant positive impacts on development of small businesses in the country (Doing Businesses in South Africa 70-71). The South African Micro-Finance Apex Fund (SAMAF) has been the largest financer of funds to small businesses, for which R152 million has been invested. Competitions authorities have also received funds from the government for the purpose of strengthening their working capabilities, for which R102 million has been invested. The International Trade Administration Commission of South Africa has also been given funds in order to increase the trade related activities including mainly exports and imports of goods and services, for which R64 million has been allocated. The most important feature f these large investments are: these investments have created a great route for international businesses to enter into the South African economy. These business developments have also created the path for the development of domestic businesses in the face of proper competition with international business organisations and operations. Finally, these business developments have also created favourable path for the overall growth of the South African economy by increasing the scope and domain of businesses in the country and thus by increasing aggregate income of the country (Doing Businesses in South Africa 70-71). Business environment in the country: In the tour, I have found that the business environment in South Africa has been highly beneficial for development of different business industries and also for the development of overall economy of the country. I have found that in the face of several challenges including debate between black and white entrepreneurs, the government has taken several developmental policies to improve coordination and integration of these different entrepreneurs. This broad integration and cooperation has helped businesses to grow at increasing rate. Private sector small, medium and large business houses have been given greater assistance in terms of raising their funds and also in raising their operational structures in the country. I have met Dr. Johan Burger 9th January, 2012 and he has told us that the role of the government in the country is to create favorable impacts upon market conditions. These developments help business organisations to grow at rapid rate and also to encourage other businesses to actively take part in the business environment of the country. Government has taken various institutional policies for the purpose of expanding business environment of small businesses which are the most significant part of the modern business in the country. The establishment of Broad-Based Black Economic Empowerment (BBBEE) has helped the country to develop its economic as well as business environments or environmental conditions. These policies were elated to the industrial policy frameworks which have created favourable impacts upon the development and growth of domestic as well as international businesses in the country. This policy has been launched in 2009 and till then this has been one of the most crucial developmental concepts in the country aimed at encouraging businesses, mainly global businesses. Business policies have been implemented with transformation agenda; an agenda of transforming economic and business conditions of the country into favourable conditions which will be expected to support the establishment and growth of different businesses. Under this policy all private and public business organisations, both state and central levels, have been developed and monitored. This advisory council also incorporated some other works like refinement of different policies and adjustment of legislation for the purpose of addressing identifies gaps in the economy and in business domains. Through the advent of Preferential Procurement Policy Framework Act of 2000, the South African government has created more favourable effects on the development and growth of businesses in the country, by finalization of alignments of these policies. The process of accreditation has also been developed in the country with establishment of these new policies and acts. In this context Dr. Burger has informed us about significant existence and operations of micro-finance institutions which have been the one of the most important parts of business-augmenting institutions in the country. The Department of Trade and industry has been responsible for maintaining smoother business conditions and to create greater employment opportunities for South African citizens. In this way the government has been maintain the path of sustainable development in the country. From February, 2010 more emphasis started to be given on development of women empowerment in the businesses and also in employment opportunities. This integration of women in businesses and in various economic decision-making processes have given the country enough opportunities to further develop its various business and economic domains to make the country able to compete with world leaders in businesses. After the introduction of BBBEE Act in 2003, the country has been continuously trying to implement more and more business policies across private and public sector domains. Under these policies different codes have been introduced, where domains, scopes as well as working structures of various private or public sector businesses, both domestic and international, have been defined, described and interpreted. ‘The Codes of Good Practice also provide the weightings, indicators, targets and guidelines for stakeholders in the relevant sectors of the economy to draw up transformation charters for their sectors’ (Doing Businesses in South Africa 71). The BBBEEE has faced several criticisms from small and medium sized business organisations, which were mostly domestic firms, in regard to making misguided decisions regarding various business promotional policies. BBBEEE has been criticised on the ground that authorities have provided huge funds to few companies as senior managers and other higher officials of these companies are part of the BBBEEE management. The BBBEEE has also been criticised due to their illegal activities and implementation of illegal policies of providing financial and legal assistance to the large business organisations. The organisation has provided tenders illegally to large businesses and earned significant amounts of money from these illegal transactions. The organisation has also been criticised due to unethical decision-making practices and policy implementations which at the management level of large business organisations and also at the ownership decisions of small and medium sized business organisations in the country (Doing Businesses in South Africa 72). With the establishment of these policies the country has implemented a strategy of incorporating an inclusive economy in the country, where international businesses have been given priorities, but not at the cost of depreciation of the domestic economies or businesses. The Industrial Development Corporation (IDC) has developed various new industrial rules and regulations for the purpose of attracting various industries and business organisations across the globe to do business in the country. Dr. Burger has also told us that these government offices have been highly beneficial in establishing competitive, equitable environments for global industries and business organisations. These policies have helped business organisations to develop their level of skills and technological expertise. Most important benefits have been acquired by domestic businesses to acquire greater knowledge of international business in the presence of global competition. Due to successful implementation of these business policies, domestic as well as international businesses have been benefitted in terms of acquiring large market for different goods and services in the country. In my tour I have found that different business sectors including film and entertainment, tourism, services, business process outsourcing and business consultancies are increasing their operations and business activities in the country (Doing Businesses in South Africa 71-73). In my tour I have been told that small businesses have been given significant importance in the country. In this context the South African government has created the National Small Business Advisory Council which advices different business organisations, both domestic and international to increase their growth paths in the country. This council is comprises of business owners, academicians, domestic and international experts of businesses, management and entrepreneurships. This council has also been providing financial assistances to various business organisations in terms of customised and/or integrated investments; property services, mentorship services, technical assistance etc. Another important policy has been the Proud South African policy: “Proudly South African is a Buy Local Campaign launched by government, organised business, organised labour and community organisations (represented in the National Economic Development and Labour Council) to boost job creation by promoting South African companies and locally made products. By buying Proudly South African, consumers/businesses are making a personal contribution to nation-building. Buy Local helps to fight unemployment and in the process also serves to alleviate poverty, crime and disease. In addition, consumers get an assurance of quality because only quality products carry the logo (mark of quality). The Proudly South African logo identifies companies/organisations that are members of the campaign or have been accredited by the campaign. Active members may only use the Proudly South African mark of quality to ensure that it maintains its integrity. The Industrial Development Corporation (IDC) approved I R1, 4 billion in loans to distressed companies during 2009’s recession. Total loan approvals for the financial year ended March 2010 decreased to R9, 4 billion compared with R10, 8 billion the previous year. The IDC intensified its lending activities and continued its focus on economic expansion with 65% of new funding approved allocated to start-up companies or expansionary activities. The IDC’s lending activities created or saved 25 000 jobs” (Doing Businesses in South Africa 72-73). Businesses and South Africa: Large volume of foreign direct investment has been poured in several industries and business organisations in the country and this investment has been helping these business organisations to grow at faster rates. In February, 2010 the South African government has implemented the Industrial Policy Action Plan (IPAP) in order to establish a decent work culture and an economic structure of sustainable livelihood in business organisations of the country. The Industrial Development Corporation has been aimed at strengthening free market conditions in favour of domestic and international business organisations. The South African government has implemented various tax reform policies which have been aimed at attracting new investments in the country. In my tour we have been told by Dr. Burger that business enterprises are required to lower tax rates in South Africa compared to many other countries in the world in respect to their net income or net corporate income. These tax rates have also been reformed into tax agreements with other countries, including USA, UK, Germany etc., and with many international business corporations in order to increase trade activities with these countries. The South African Reserve Bank (SARB) and many other banks (authorised by the Ministry of Finance) have been responsible for administrating exchange control managements. These management activities are also aimed at maintaining a smooth developmental path for both domestic as well as international businesses. The exchange-control programme has been implemented in the country in order to influence local and global investors in investing in industries and business organisations in the country. This programme has also helped insurers and pension funds to create positive impacts in business organisations of all industries in the country. Dr. Burger has also told us that after adopting economic liberalisation policies in 1996, the South African government has been consistently implementing various economic policies for the purpose of creating positive impacts on businesses in the country (Doing Businesses in South Africa 71-75). There are various types of industries operating in South Africa, including business consultancies, business outsourcing services, tourism, films and entertainment, manufacturing, mining, advertising, health, home improvements, and many more. Among all these industries my focus was on only service sector of the country. For this reason I have visited two biggest companies in the services industry of the country, Grand Thornton and Deloitte. Grand Thornton has been the most reputated company since its inception in 1920. This company has been providing verities of services including tax, assurances and business advisory services to dynamic organizations. Their clients are large listed companies, large businesses, mainly privately held and domestic and /or global equity backed organizations, which are all privately held. On the contrary, Deloitte has been one of most important professional service providing firms in the country. This firm has been providing tax, audit and consulting services and also financial advisory services to almost 3600 people and business organizations across the country, covering near about 8 largest cities in South Africa. These services are provided to 16 cities situated in Southern Africa. Deloitte is the South African member firm of Deloitte Touche Tohmatsu Limited (Jones and Reavis 3). These services have been most important contributor in development of both economic perspectives of the country and also for the development of business organizations which are operating in the country or are willing to operate in near future. Multinational companies have been given great importance in the country. Large global businesses which provide business consultancy services, financial services, tax services have been given significant importance in terms of their development and also in terms of their growth in the overall business in the country. Deloitte has started doing business in South Africa from 2003. At the beginning the company concentrated in services and consultancy sectors of the country. The country, during this time, has been emerged as one of the biggest exporters of minerals. Rising terms of trade and boom in the commodity markets of the country have helped the country to emerge as one of the biggest potential countries in the world for making investments in businesses in the service sector. In this regard Deloitte made no mistake and invested in the service sector of the economy. Creation of various positive economic and business environments have helped the company to grow faster and also to increase the path of development of its business. In the face of wealthier people and more opportunities for companies to earn money the management of the company invested significant amount of money in the development of business and operation in the country. Between 2003 and 2007, the company has invested large amount of money in the country. During this time the country has been experiencing rapid macroeconomic changes which have been helping business organisations to gather confidence to invest in the economy. These investments have helped the country to develop its base of financial capital and also to finance debt or investment gap. In the face greater job securities during this time the South African government and citizens have also started showing enough interests in developing business environments in the country. These economic and business factors have started to help Deloitte to grow its business in the country. I have been told during my tour that in this time the increased levels of income of South African citizens and the government have been helping the company to some great extent to develop various conditions and environments for a significant business. Through this environmental development and management efficiencies the company has been able to gather significant confidence to acquire more and more profits from doing business in the country and further investing parts of those profits in developing the capital base and business environment in the country. In the presence of government intervention in developing business environments in favour of domestic and international business organisations the company has been able to implement various business development policies (Nowak and Ricci 1-4). These policies have also helped to create favourable effects on the South African economy which have again raised the interest of the government to further develop those conditions and environments. But during this time the company faced several challenges. High rate of inflation and higher rates of interests have created detrimental effects on the development and/or growth of the company. These high rates have reduced the demand for services and business consultancies of the company and hence reduced the profit margin of the company (Blomstrom and Lundahl 302). These reduced profits have further reduced the rate of investment made by the company in the country and hence, reduced the growth path of economic development in the country. In the beginning of 2008, in the face of global financial crisis the company has started to experience the bad phase of its business. During this time, the fall in demand for goods and services at the international level has significantly reduced the profitability of the company. During this time the significant reduction in the demand for investment goods and services in the global level has created significant reduction of demand for the services sold by the company in South Africa (Nattrass and Ardington 409). Poor performance of mining and manufacturing industries of the country, along with poor financial and business performance of export sector of the country have been starting to create great detrimental effects on the profitability of the company. During this time the world economy has already been dipped into recession and the South African economy also suffered badly from this crisis situation. Hence, economic events such as power crisis, financial crisis, blackouts have been experienced by local as well as global businesses during this time. Due to this crisis the company has started to experience falling business and consumer confidence. Greater job losses from Manufacturing & Mining and loss in income have made the company as well as the government to implement suitable policies in the business environment of the country. In the face of the global crisis the country has entered into the crisis situation in a bit delayed and in the face of the tight credit restrictions the country in fact faced intensity of the global crisis. The policy of lower borrowing policy from various internal and external sources including both private and public sectors have also helped the country to be affected less by that financial crisis situation. Due to implementation of these policies South African economy faced lesser financial problems and even in the scary presence of global financial crisis the housing, automotive and retain market industries have been faced considerable growth and development during this time. All these developments have helped Deloitte to recover quickly from the crisis situation and thus to augment the path of growth and development of both the company and of the country. In 2010, the company again started to face significant recoveries and growth through the advent of Football World Cup, which gave the company enough chance to promote its various new products and services through significant advertisements and promotional activities. This event gave the company and hence the country significant platform to make a tentative recovery from global crisis situations. With strong financial relations with India, China and Sub-Saharan African countries the country has been successful to achieve moderate rate of interest rates and rate of inflation in the country which have helped the company to acquire greater volume of investments for its growth and development (Stadler 192). With these policies the company and hence the country started to face financial recovery at slower pace with risks to the downside. The South African economy has been described as the developing economy. It is ranked 28th in the world in terms of Gross Domestic Product (GDP) and 79th in terms of Purchasing Power Parity (PPP). On e most important feature of a developing country is that it become much easier for any large business organisation to create significant impact on the business environment of the company by opening new branches of that large business organisation in that developing country. Another important feature is that in a developing country, prices of goods and services (including prices or costs of labour services) are kept at low levels and these prices are largely controlled by the government (Ross 142). Hence, it becomes easier for any business organisations to acquire cheap labour force and other factors of production for various products and services. These features of developing countries in general and South Africa in particular have helped the company to operate successfully in the country for so many years and to be an important part of the economy of the country. According to the World Bank and International Monetary Fund (IMF) the South African economy is expected to grow at 3.2% in 2012 and at 4.2% in 2013. These estimates are very close to expected growth rates of many developed countries of the world. These estimates also have been helping the company to operate in the country and to earn significant amounts of profits from its business in the country. The following figure shows the estimated grow of the South African economy in the future compared to the previous years (Doing Business in South Africa: Challenges, opportunities and strengths 5). Figure 1: Real GDP growth forecast Percentage change at seasonally adjusted annualised rate Year Source: Doing Business in South Africa: Challenges, opportunities and strengths In the face of this high rate of economic growth the company has consistently been trying to increase the level of capital base in the country and also to increase the level of investment invested in the country for developing greater domestic as well as international markets for goods and services. I have been told that according to World Bank and IMF since global prices of oil are expected to stay within the range of non-creation of any inflationary pressure in world economies; therefore Deloitte is planning to expand its business in the country. This policy of expansion is expected to give the company significant increase in the markets for its services and also a significant increase in the level of employment in the country, which again will cause a great expansion in the demand for the services sold by the company. The company Grand Thornton has also been positively affected with these economic developments and downturns. These companies have been in the same industry and hence their effects on the country’s economy and effects of the country’s economy on these business organisations largely been the same. In the face of global crisis both the companies have been badly affected and after the crisis got over both business organisations have started to fully utilise all economic developmental policies implemented by the South African government to earn greater profits and thus to increase the level of investment in the country (Marais 378). At the end of 2010, when there occurred financial crisis situation in the European countries the South African economy again started to fear another recession. But in the presence of stricter monetary and fiscal policies the country did not face any severe damage of its growing capital base and high rates of investments. Hence, during this time both Deloitte and Grand Thornton did not face any financial problem and both companied maintained their capital base and high rates of investments. Developments of local infrastructures and business environments domestic as well as international business organisations, such as Deloitte and Grand Thornton, have been given efficient platforms for developing their business in the country and also to improve their scale of profit margins. In 2011, failure of mining and manufacturing industries has negatively affected the structure of business in the country and hence the structure of businesses in the services sector of the country has also been badly affected during this time. This was the story at the beginning and middle of 2011. But at the end of 2011, mainly in the December, the crisis situation started to change in favour of the industry and in favour of both the business organisations. With the introduction and implementation of several stricter monetary and fiscal policies during this time, including the policy of less borrowing from developed countries and World bank or IMF, have given the country and its services industry a path for self-development and self-growth (Doing Business in South Africa: Challenges, opportunities and strengths 6-8). The financial services sector is one of the most important sectors in the country which has created significant impacts on every South African citizen’s life. The financial services companies have generated stability in the financial sector of the country. The level of consumer protection, coordination of regulators with financial institutions of the country and accessibility of financial services are much higher at present compared to the past. This development has occurred largely because of significant operation of financial services companies in the country. We have been told by management and executives of Deloitte and Grand Thornton that these companies have not only increased the profitability of their own but also changed the future of the financial structure of the country through tax, audit and other financial services. This has been one of the most important reasons behind the fact that the financial crisis of 2007-08 could not hit badly the country’s financial system. The most important feature of this financial structure of the country is that the level of investment has been raised to a significant height in recent times compared to the past. This high level of investment has been spreaded into every sector of the economy (from infrastructures like transports, buildings, health services to business consulting and other services). The degree of financial stability is much higher at present times than the past because of greater use of this fresh investments and greater use of financial companies like Deloitte, Grand Thornton, PricewaterhouseCoopers etc. The increased level of consumer protection and trade with other countries has helped the country to gain greater financial support from both domestic as well as international clients of these companies and other business organisations (A safer financial sector to serve South Africa better 1-5). Some of the companies in the financial services sectors are getting poor ratings from BBBEEE inspite of their high growth performance in recent past. Major possible causes of this include they only care about private wealth and they prefer talent and growth over stuffing their payroll for the sake of BBBEEE ratings. Also the level of public relations is also not satisfactory for these companies to get a good score. In the financial services countries, mainly MNCs, are under closer watch and also dealing with government as they need public relations and a high BBBEE score. In 2011, Investec scored only 30% on transformation of management and the entire group achieved 60% on employment equity and 40% in development of skills (Investec scorecard looking better, but comes under fire 1). In respect to building up public relations the conflict between black ownership of companies and savings of black people working in these companies the BBBEEE played an important role. Various MNCs have encouraged savings and investments like provident funds, life insurance for their black employees, but these companies have not encouraged black people to obtain the ownership of these companies. In this regard this strategy of BBBEEE has been criticised by people and business experts (JSE study on black ownership slammed 1). The bill presented by the BBBEEE regarding business ethics and organisational behaviours have been criticised by various business organisations and business experts. In the bill the policy of Fronting has been criticised by business executives, like Teddy Daka of Tedaka Technologies, saying that in this case although ‘domestic workers, cleaners and gardeners’ of companies own the share of that company, but they do not possess any voting right or economic decision-making power in the company. This policy has been marked as very unethical public relational development policy. These policies have been used by financial services companies to gain greater rating from the BBBEEE and hence to increase their level of business in the country (Xulu 1). Challenges faced by companies: However, there have been several challenges and obstacles faced by the Deloitte and the Grand Thornton in the services industry in the country. These challenges included economic, financial, social, and cultural as well as investment related problems in the country. South Africa has been ranked 39th in regard to world’s most politically unstable countries. High rates of political instability and associated violent political issues and incidents have made the country not a favourable country for making business investments or setting up business organisations. High rate of income inequality is another major problem in the country. During my tour I have seen huge income inequality which has been prevailing in the country and continuously becoming the most important obstacle in the path of economic development of the country. Racist attacks in 2008 became one of the most fearful incidents in the country for business organisations to invest in the country. The most problematic nature of the South African economy has been low trusts in government and government institutions. This feature has been creating grave problems for the country’s economy by decreasing the willingness of various large business organisations of the world to invest significant amounts o money in the country’s economy. These problems are not only negatively affecting the present structure and development of the South African economy, but are also hurting the future of the country’s developing economy. Lack of proper democratic framework and existence of greater labour unrest have been creating further obstacles in the development in the country’s growth by negatively affecting the growth prospects of these large global businesses (Nattrass 59). High level of unemployment and political instability has been creating detrimental effects on business confidence of various business organisations, manly international business houses. These have also been affecting negatively the level of confidence of global investors in regard to make significant investments in the country and to earn large profits from this highly potential South African economy. Social unrest and political unstable situations have been affecting these two companies from 2008 although the South African government has been highly cooperative to these business organisations to settle down their businesses in the country. The existence of vicious cycle of poverty and lower income has been the most important problem for these two business corporations in recent times (Fine and Rustomjee 96-97). Due to prevalence of this cycle on one hand there has been lack of demand for services sold by these companies; and on the other hand the low level of aggregate income has been causing businesses to invest less in this industry. This low investment has been causing businesses and thus the overall South African economy to grow at lower rates compared to other developing countries of the world, such as India and China. Prevalence of HIV and other diseases and lower life expectancies at birth in the country have been affecting, negatively, the growth rate of labour force. Also these have been negatively affecting the accumulation of skilled labour force in the country (which has also been true due to lower education rates in the country). All these have been adversely affecting the growth of business organisations of the services industry (Doing Business in South Africa: Challenges, opportunities and strengths 13-21). Opportunities and strengths: However, there are various future opportunities and strengths prevailing in the country which are expected to help these two companies to grow at rapid rates in the future. The high expected rates of growth in the country are encouraging businesses across the globe to invest in the economy and to earn higher profits from several large investments. High rate of population and high rate of government’s centralisation of political power are making positive impacts on expectations of business organisations across the globe to invest at higher rates in the country (Reynolds 210). After observing the success of the Deloitte and the Grad Thornton various international businesses like Ernst & Young and PricewaterhouseCoopers are planning to invest in the services industry of the country. The existence of sophisticated financial market in the country has also creating huge encouragements for these businesses to invest in the economy. According to WEO South Africa is the 6th largest financially stable country in the world. This high financial stability is ensuring business organisations to become a part of the economy without possessing the fear that sudden global disturbance will hamper the growth path of these companies (Doing Business in South Africa: Challenges, opportunities and strengths 22-36). Conclusion: South Africa has been one of the most politically unstable countries in the world throughout the history. Apart from these political problems there have been several other social problems in the country. However, in the presence of these problems related to the South African economy the government of South Africa has implemented several favourable policies and business strategies in favour of domestic and global business organisations. These policies and strategies have helped different industries to grow in the country, but the services and business consultancy industry has been benefited at the most significant level in the country. Deloitte and Grand Thornton have been most influential companies in the country throughout the last decade and these companies have been growing at rapid rates inspite of several obstacles prevailing in the country and in the economic and business structure. In my tour I have found that doing businesses in the country is very difficult due to the above mentioned challenges and yet at the same time very much easier because of the current grow perceptions of the South African economy. Hence, it is very much difficult to argue that which of the following factors will win in the future and make the economy more reliable for global business organisations and large multinational corporations. Hence, I would like to make further research studies in the country in future (atleast after 10 years to know exact situations and environments of doing businesses in the country; mainly after proper implementations of current policies and strategies of the South African government to boost up the business perspectives of the country. I hope that all industries and business organisations will be benefitted from doing business in the country in near future. References “A safer financial sector to serve South Africa better”, National Treasury Policy Document Republic of South Africa, 2011, February 6, 2012 from Blomstrom, Magnus and Lundahl, Mats, Economic crisis in Africa: perspectives on policy responses, UK: Routledge, 2008 “Doing Business in South Africa: Challenges, opportunities and strengths”, Deloitte Touche Taumatsu Limited, 2012, February 6, 2012 “Doing Businesses in South Africa”, Pocket Guide to South Africa, 2011, February 6, 2012 from Fine, Ben and Rustomjee, Zavareh, The political economy of South Africa: from minerals-energy complex to industrialisation, UK: C. Hurst & Co. 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