Southern exposure

Entrepreneur, July, 1997 by Lynn Beresford

Since the United States began lifting trade sanctions against South Africa in 1991, foreign companies have cautiously been returning to the nation. If you're considering exporting to South Africa, keep the following in mind:

* South Africa boasts the most advanced and productive economy in Africa as well as a highly developed infrastructure. Over the past 50 years, the country's economy has diversified from diamond and gold mining to manufacturing, finance and business services, and commerce.

* "South Africans are very interested in American products," says former assistant secretary of commerce Lauri Fitz-Pegado. South African youths, in particular, clamor for products with a "Made in the USA" label. "It's a young culture," she says, "and one that needs basic necessities, such as food, clothing and housing." U.S. franchises are also a hit - McDonald's and Toys "R" Us are two favorites. South Africa also has a rapidly growing tourism industry, so related products and services are popular.

* According to the U.S. Department of Commerce, the best American export prospects for South Africa are industrial chemicals, computers and peripherals, software, drugs, and medical and pharmaceutical equipment.

* Small-business owners who can't yet afford to open an office in South Africa should contact the Commerce Department in Johannesburg. The facility provides entrepreneurs with office space and equipment, secretarial assistance, research and information, and meeting space (fees were not available at press time).

In the wake of anti-apartheid sanctions, exporting to South Africa hasn't been a cinch for Parker. "Under sanctions, South Africa has learned to do business with other [nations]," he says. "Now we must compete with countries we didn't have to compete with before sanctions." However, says Parker, "[the experience] has strengthened our business by making us sharper businesspeople."

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For More Information

* Embassy of South Africa, Washington, DC, (202) 2324400; fax (202) 265-1607

* U.S. State Department (South Africa desk), (202) 6478432; fax (202) 647-5007

* U.S. Department of Commerce (South Africa desk), Washington, DC, (202) 482-5148; fax (202) 482-5198

* U.S. Chamber of Commerce, Johannesburg, South Africa, 011-27-11-331-1681

* U.S. & Foreign Commercial Service, 011-27-11-442-3571; fax 011-27-11-442-3770

* Cape Town Chamber of Commerce, 011-27-21-418-4300

* U.S. Embassy, Pretoria, 011-27-12-342-1048

* Republic of South Africa Mission to the UN, New York City, (212) 213-5583; fax (212) 213-0102

* Web site: www.stat-usa.gov/bems/bemsoft. Contains data on all the Big Emerging Markets; click onto South Africa for specifics.