In 2001, Goldman Sachs economist Jim O'Neill coined the term "BRIC" to identify four large emerging economies and describe their geopolitical influence in years to come. The BRIC economies (Brazil, Russia, India and China) accounted for approximately half of global growth between 2000 and 2008 and are expected to account for 61% of global growth in 2014, according to research by the International Monetary Fund (IMF).
Not surprisingly, South Africa, the largest economy on the African continent, was recently invited to join this group. Now the powerful group of emerging economies can be proudly referred to as BRICS. South Africa's invitation by BRIC to join BRICS as a full member is an affirmation of its status as part of the dynamically evolving world economy. Membership has the potential to boost investment and trade opportunities for South Africa.
I have already written about the challenges of marketing in BRIC economies. Now it is time to discuss South Africa.
Located at the southern tip of the continent of Africa, South Africa is a middle-income emerging market with an abundant supply of natural and labor resources; well-developed financial, legal, communications, energy, and transportation sectors; a stock exchange that is the 18th largest in the world; and a modern infrastructure supporting a relatively efficient distribution of goods to major urban centers throughout the region.
South Africans had an estimated per capita income of $10,700 in 2010, and the country is projected to be the seventh fastest growing economy by the year 2050 with an average annual growth rate of five percent, as per projections by consultancy firm PricewaterhouseCoopers in its report titled, The World in 2050.
With a wealth of natural resources including gold, chromium, antimony, coal, iron ore, manganese nickel, phosphates, tin, uranium, gem diamonds, platinum, copper and natural gas, South Africa promotes and supports its mining industry. As an importer of products ranging from pharmaceuticals to telecommunications and a host of other industries in between, South Africa is creating opportunities for global markets for a multitude of products.
South Africa imports machinery and equipment, chemicals, petroleum products, scientific instruments and foodstuffs. South Africa also offers opportunities to invest in tourism and recreational facilities, aviation, mohair, agra processing, agriculture and solar, electronic manufacturing, golf courses, housing developments, biotechnology and wind technology.
International companies that have already chosen South Africa as a business process outsourcing (BPO) destination include IBM, Fujitsu, Siemens, Lufthansa, Virgin, Sykes, Avis and the Car Phone Warehouse. The BPO industry focuses on sectors including financial services, insurance and telecommunications, with outsourced processes including after-sales services, data capture and conversion, accounting, benefits administration, human resource functions, and website design and development.
Clearly there is potential for doing business in South Africa. In my next three articles I will highlight the country's value proposition and discuss the multinationals that have already taken advantage of it. I will also highlight the challenges that global players face in this market so that companies looking to enter South Africa will be able to develop appropriate proactive strategies for successful operations in this country. ( linda )20 Dec,2011

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Revisiting the Correct Application of the Delivery Terms—Part 1
Doing Business in South Africa—Part 2: The Value Proposition
Where to go for Help
Revisiting the Correct Application of the Delivery Terms—Part 2
Doing Business in South Africa—Part 3: Who’s Doing Business There Now