Doing Business in South Africa

With its famous reputation for cultural diversity, South Africa is an interesting place to do business that offers expats an eye-opening experience. The myriad of different practices and customs expats may come across can be daunting, but a few generalities do exist. Western expats shouldn’t experience too much of a culture shock in the South African business world.

When opting to do business in South Africa, expats will quickly fit in with a local populace that has learned that the most direct path to success is the one that people carve out for themselves.

Fast facts

Business hours

Business hours are generally Monday to Friday from 8.30am or 9am to 5pm.

Business language

English is widely spoken. Knowing some isiXhosa, isiZulu, or Afrikaans is beneficial but not necessary.

Dress

Dress is conservative but not formal. Suits are the exception to the rule, not the norm, and are reserved for more corporate environments.

Gifts

Not expected, but typically welcome. Gifts are often opened in front of the giver.

Gender equality

Women in South Africa are entitled to the same opportunities as men, but female representation in senior management remains relatively low.

Greetings

Handshakes are the norm in professional settings.

Racial equality

Broad-Based Black Economic Empowerment (BBBEE) is an affirmative action policy that aims to redress the socio-economic imbalances caused by apartheid by helping to bring the black majority into the economic mainstream. This affects hiring processes, as certain population groups are given preference for BBBEE jobs. Although the programme is not compulsory, BBBEE-certified businesses are given certain benefits.

Business culture in South Africa

Striking differences in ethnicity, language, and customs mark South Africa’s business culture. The most important thing for expats doing business in the country is to try to understand the complexities of this culture. Over time, a few common practices will emerge.

Cultural nuances

The working world of one urban centre contrasts not only with rural counterparts but also with other cities. South Africans love stereotyping Johannesburg as being hard-working and full of opportunity, while Cape Town is said to be more relaxed but also more insular.

South Africans typically prefer doing business with people they’ve met before. They are also known for being warm and inviting, and a bit of relationship-building will go a long way in cementing business arrangements. South Africans value hard work and applaud those who have succeeded – but they tend to prioritise other aspects of life such as family, good living and friendship.

Punctuality is also essential; however, depending on the client’s culture, patience may be necessary. Government figures, for instance, are often late.

Work environment

The South African work environment tends to be more relaxed and personable than you may be used to, except for some larger corporations and more established financial institutions. That said, a clear management hierarchy still exists, and showing respect for senior executives and colleagues is essential. In exchange, decisions are frequently made in a somewhat egalitarian manner.

Dos and don’ts of business in South Africa

• Do schedule appointments a fair amount of time in advance and confirm the day before the meeting
• Do be punctual, even if expecting to wait
• Don’t be surprised if local colleagues ask personal questions or discuss their personal lives. South Africans are friendly by nature, and this is common.
• Don’t be afraid to join colleagues for an after-work event. This is rarely seen as an obligation but instead as a fun way to get to know one another.
• Do dress conservatively when initially joining an office, cementing relationships with clients or associates, or attending an interview, even in casual offices