...An In-Depth Study of the South Africa as a Possible International Market Kimberly Buchanan Park University IB315 Spring 2013 Introduction South Africa is a country of contrasts: urban versus rural, white versus black, traditional versus modern. This country report will slowly peel back the layers of the country known as South Africa. It will begin by introducing the reader to an overview of the country that will include the demographics, major products, and factors that allow the country to be unique among other countries. It will, then, introduce the reader to the aspects of the culture of South Africa. Third, the report will provide information about the political and legal environment in South Africa. Finally, it will shed light on the economic environment of South Africa. Brief Overview of South Africa The Republic of South Africa is a country unlike any other. The changes this country has with stood, the demographics of its people, and the industries that are continuing to grow make for a wide array of factors that benefit the country of South Africa. Few countries are as influenced by as many cultures as the country of South Africa. The country was first influenced by the Dutch (Boers) traders who used a small section of the land as a form of refueling center during the trip to the Spice Islands in 1652 (Central, 2013). This “stopover point” was the establishment of the city that is now known as Cape Town (Central, 2013)...
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...South African Reserve Bank Working Paper Series WP/13/04 South African Capital Markets: An Overview Shakill Hassan October 2013 South African Reserve Bank Working Papers are written by staff members of the South African Reserve Bank and on occasion by consultants under the auspices of the Bank. The papers deal with topical issues and describe preliminary research findings, and develop new analytical or empirical approaches in their analyses. They are solely intended to elicit comments and stimulate debate. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the South African Reserve Bank or South African Reserve Bank policy. While every precaution is taken to ensure the accuracy of information, the South African Reserve Bank shall not be liable to any person for inaccurate information, omissions or opinions contained herein. South African Reserve Bank Working Papers are externally refereed. Information on South African Reserve Bank Working Papers can be found at http://www.resbank.co.za/Research/ResearchPapers/WorkingPapers/Pages/WorkingPapers-Home.aspx Enquiries Head: Research Department South African Reserve Bank P O Box 427 Pretoria 0001 Tel. no.: +27 12 313-3911 0861 12 SARB (0861 12 7272) © South African Reserve Bank All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without fully acknowledging the author(s) and this...
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...Case Connection China in Africa: A Big Step Forward, or a Bigger Step Backward? Entering an untapped international market can strengthen a business tremendously—but what if the costs outweigh the benefits for the market itself? China has long been an important player on the global stage, but recent advances in manufacturing, natural resources, and energy production have catapulted the expansive country to the forefront of international trade. Currently the world’s fastest growing major economy, China is set to eclipse the United States as the world’s largest economy by 2016. Among various domestic and international plays, one of China’s most fascinating uses of its newfound economic might is a considerable interest—and investment—in the continent of Africa. As its economy grew throughout the 2000s, China began establishing oil and mining firms across Africa. In return for the cooperation of African governments, China built new roads, bridges, and other varieties of desperately needed infrastructure. The economic powerhouse’s inroads into the African market quickly widened, and so did the scope of its investments. For every new mining and drilling operation, China built new governmental buildings, sports stadiums and housing complexes. China’s most prominent declaration of its intent to strengthen ties with Africa, however, was the construction of the $200 million African Union building in Addis Ababa, Ethiopia. Today, China’s trade with Africa exceeds $190 billion—up...
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...Case #2: Bharti Airtel in Africa Competition in African markets is fierce. It really is a war zone. And, as with any conflict, the outcome hinges on decisions regarding strategy – and the available weaponry. Winning wars is not just a matter of having the best weaponry, although that helps. Without a strategy, chaotic retreat is the order of the day. Roy Johnson Bharti Airtel has a history of making first moves and emerging as the winner just because of that. This is what built the company’s success in India, where it remains the top MNO and second-largest fixed-line operator. In fact, thanks to the massive market it serves at home, at the time it acquired the Zain portfolio in March 2010 Airtel was reckoned to be the fifth largest mobile operator in the world on a proportional subscriber basis, putting it behind the likes of China Mobile, Vodafone Group, American Movil and Telefonica, but ahead of China Unicom[1].\ Airtel has been looking at Africa as a new growth market. While it has a deal with Vodafone for the Channel Islands, Africa is the only other territory outside the Indian subcontinent that the company has entered. The commonalities are compelling: similar markets, needs and infrastructure. The realities on the ground are somewhat more challenging: logistics, legislative compliance and serious local competition being foremost. Africa`s strategy of Airitel takes different...
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...Happiness is a freedom of choice and a great way to live. A lot of people like to express the freedom of choice through the market. In 1984 the greatest crime of history happened, a lot of people died of starvation. In Africa most Africans are farmers; small farmers live life with less choice because he has less money. He has to always shop on a budget and buy what he can afford at the time. A big farmer has more of a choice to spend as he likes. The question is how can markets be developed in Africa? Over two decades ago the government of Africa said that the market must be liberalized. Liberalized meaning remove or loosen restrictions on. The food import bills have doubled more than what it was 20 years ago. Africa’s market problem is Africa’s market challenge. The prices of crops in Africa are the highest in the world. Africa is learning that markets don’t happen by themselves. The Chicago board of exchange was a big organization that farmers would use to exchange goods through the market. Common exchanges went down between the farmers. If farmers were to go make a trade and nobody was to be found farmers would lose money because they wouldn’t want to return home with the product that they arrived with. The ECEX which was established April 2008, which means the Ethiopia Commodity exchange. It was formed to ensure the development of an efficient modern trading system, which would protect the rights and benefits of sellers, buyers, intermediaries...
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...1.0 Executive Summary Air Africa is an establishing private limited African budget airline based on passenger and cargo air transportation service linking the whole southern and northern African region. We provide cheap and fast routes service to destinations within Africa with the aim to ease pressure on the middle and low income earners and give them an experience of also flying than resorting to bus and trains. Air Africa has healthy projected sales by the third year hopefully the market entrant would have been accepted and plans to transport 40 000 people monthly. It was started to provide and add and ease the transportation gap in the regional market. From our research we saw that there are some African routes which are not served or underserved so our Airline has targeted such destinations. Our customers are business executives and women who are involved in round tables were they sell products in different parts of the region to enhance cultural diversification. School children travelling within Africa to further education will not have the hassle of travelling by bus for long distances for example from Zimbabwe to Namibia which is a two day journey by road and will cost around US dollars 100. Tourist travelers who will be on the search of the African passion and wild life, Africa is well known for the BIG 5 and also possessing some wonders of the world and that’s the most rewarding trip of Africa to meet its people. Air Africa will cut the gap between the...
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...five forces 3. Market size 4. Position in the market life cycle 5. Available distribution structure, plus attitudes and practices 6. PESTEL 7. Risk Analysis B. Firm Analysis 1. Brief history of the company and stage of internationalization 2. SWOT Analysis 3. Stakeholder Analysis 4. Product Development and Product Extension 5. Pricing and Financial Policy 6. Internet and E-commerce 7. Organizational Structure C. Competitor Analysis 1. Competitive Positioning: Direct and Indirect Competitors 2. Market Share Distribution 3. Future Competition – Direct and Indirect Competitor 4. Barriers to Entry 5. Competitive Advantages D. Customer Analysis 1. Who are your customers? 2. What do customers want/need? 3. What must be done to satisfy their wants and/or needs? 4. What is the size of the market? 5. What is the growth profile? IV. Strategic Marketing Decision A. Marketing Scope B. Marketing Goals 1. Successfully launch and market the expansion of the product offer 2 Marketing Plan Oliberté International Marketing MIB Front - Team 4 2. Successfully launch and market the contribution tracking system 3.Successfully launch and market the ‘design-yourself’ module 4. Find, attract & engage celebrities to make them promote the brand & the products 5. Successfully launch and market the partnership with ‘fair-trade’ organizations C. Marketing Objectives D. Value Proposition V. Go-to-Market Strategy A. Core marketing strategy B. Identification of the target market:...
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...[Name] [Course Title] [Instructor Name] [Date] Write a research paper on Poverty in Africa. Describe how/in what way it is such a big problem in the world, possible causes and possible solutions in which you think these problems can be solved. Contents Abstract 3 Introduction: 4 Overview of poverty in Africa: 4 Facts about poverty in Africa: 5 Graph: 6 Causes of poverty in Africa: 7 1. Corruption and Poor Governance: 7 a) Unbalanced Economic Systems: 7 2. Environment: 8 3. Poor Utilization of Land: 8 4. Increase in Population: 9 5. Diseases and poor health facilities: 10 Solutions to overcome poverty: 10 1. Overcoming government failure: 10 2. Education: 11 3. Population control 11 4. Focus on agriculture: 12 5. Other possible solutions: 12 References: 13 Abstract This paper will provide a deep insight into the problems of poor people and their causes of poverty. Other than that solutions to their issues regarding the government and basic necessities of live will be focused upon. The deprivation of services for the poor is another noticeable point in the paper. Introduction: Poor people are poor because of many reasons, but they remain poor because market and government does not support them. When capital markets fail, youth is unable to get loans to finance their education, they are not capable of maintaining their health and most importantly the government is unable to provide them with basic services and...
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...1 Innovation in Africa: A View from the Peaks and Hilltops of a Spiky Continent* By David A. Wernick, Florida International University College of Business *From the forthcoming book Innovation in Emerging Markets, edited by J. Haar and R. Ernst (Palgrave, 2016). Please do not circulate or quote without consent of author. ABSTRACT: There is growing interest among scholars and practitioners in African innovation. Some contend that the continent's recent economic boom is largely a homegrown phenomenon, driven primarily by indigenous entrepreneurs developing local content for continental consumers. But is this true? To what extent is Africa's impressive economic performance in recent years the result of internal dynamics and which actors and institutions are most responsible? This chapter examines the state of innovation across the African continent, with a particular focus on sub-Saharan Africa. The authors identify key facilitators of innovation in the private, public, and non-profit sectors, as well as obstacles to the continent’s continuing innovation-led economic expansion. I. Introduction In a widely read 2005 article in the Atlantic Monthly, author Richard Florida argued that with respect to innovation, the world is anything but flat. Given the way that creative talent, technical expertise, and financial capital tend to cluster in a handful of hubs or “peaks” around the world – places such as New York, San Francisco, London, Berlin, and Tokyo – the world’s...
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...about the extractive industries. Seven articles examine the future of a wide range of sectors. Although Africa’s growth prospects are bright, they differ not only country by country but also sector by sector. In these articles, we examine the possibilities for seven of them: agriculture, banking, consumer goods, infrastructure, mining, oil and gas, and telecommunications. Perhaps the most fundamental point is that Africa’s growth story is hardly limited to the extractive industries. As many as 200 million Africans will enter the consumer goods market by 2015. Banking and telecommunications are growing rapidly too, and infrastructure expenditures are rising significantly faster in Africa than in the world as a whole. Not that the growth of the extractive industries won’t be impressive. The continent has more than one-quarter of the world’s arable land. Eleven of its countries rank among the top ten sources for at least one major mineral. Africa will produce 13 percent of global oil by 2015, up from 9 percent in 1998. For many companies, this is a future worth investing in. 2 Africa’s path to growth: Sector by sector Agriculture: Abundant opportunities Kartik Jayaram, Jens Riese, and Sunil Sanghvi Agriculture is Africa’s largest economic sector, representing 15 percent of the continent’s total GDP, or more than $100 billion annually. It is highly concentrated, with Egypt and Nigeria alone accounting for one-third of total agricultural output and the top ten countries generating...
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...HISTORY South Africa is the southernmost country on the African continent. It has a long history of conflict and human rights issues but it has always been one of the most economically prosperous nations in southern Africa due to its coastal location and the presence of gold, diamonds and natural resources. By the 14th century C.E, the region was settled by the Bantu people who migrated from central Africa. South Africa was first inhabited by Europeans in 1488 when the Portuguese arrived at the Cape of Good Hope. However, permanent settlement did occur until 1652 when the Dutch In following years, French, Dutch and German settlers began to arrive in the region. by the end of the 18th century the British controlled the entire Cape of Good Hope region. In 1961, South Africa became a republic after it withdrew from the British Commonwealth Four years later on May 10, 1994, Mandela was elected as South Africa's first black president and during his time in office he was committed to reforming race-relations in the country and strengthening its economy and place in the world. This has remained the goal of subsequent governmental leaders. ECONOMY South Africa has a mixed economy, the largest in Africa in terms of both nominal GDP (at $375.944 billion) and GDP atpurchasing power parity (at $608.804 billion). It also has a relatively high GDP per capita compared to other countries in Sub-Saharan Africa ($11,750 at PPP as of 2012). Despite this, South Africa is still burdened...
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...By 1900, 90.4% of Africa belongned to European Powers (document 1). They used African Territories for mostly economic reasons. Countries could have a market for their products and gain whatever resources were in Africa. This kind of ruling was unfair to natives for many reasons, although Europeans didn't see it that way. Often territory was colizationed in violent ways, hurting Africans even more. In the 19th century, Western Europeans explained their imperialism as economic, and African countries were taking over violently, disrupting what had been there, although colonists really thought the natives got the better deal. A reason why the europeans felt they needed to take over these countries was for exports; France especially felt this way....
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...“Globeleq scrambling for Africa” Table of Contents Introduction 3 Literature Review 4 Globeleq Tanzania 4 Globeleq Egypt 5 Globeleq Cote d’Ivoire 5 Globeleq South Africa 5 Globeleq in Uganda 6 Determinants for the 6 countries that has promoted such as: 6 Successes and Failure 7 Justification and Rational 8 Conclusion 9 Group progress 9 Introduction Foreign Direct Investments (FDIs) in the world today are an important economic resource and tool. Over the last three decades, FDI inflows have produced powerful stimulus for economic development in various countries across the globe. FDI inflows can help an economy by giving opportunities for improving the level of business and legal services, wholesale and retail trade or service sector. Thus, FDI has the potential to create jobs, improve productivity, the exchange of expertise and technology, increase exports and play a significant role in the long-term economic development (Liargovas & Skandalis, 2011; Financial Times (2012); Omisakin et al., 2009). In terms of foreign direct investments, Africa undoubtedly has all the makings of a prospective investment case due to its natural resources, trade openness, rapid economic and population growth, improving environment and maturing political system. As a result, despite a drop in investment in the last couple of years following a peak in 2008, Africa has remained an attractive investment destination throughout the global downturn and has managed to maintain...
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...South Africa A Development and Economic Overview Introduction I chose South Africa as the topic for this research paper. I have always wanted to visit South Africa but have never had the opportunity to travel there. My involvement in international development has given me an interest in this country, as it has many ties to the developing world and the history of developing countries through colonialism. South Africa is influenced by all levels of economic activity including the primary, secondary, tertiary, quaternary and quinary sectors which determine if South Africa’s commercial economy. These economic levels, along with the indicators of development, show whether or not South Africa is a developed nation and if so, how developed they are. This paper will present an overview of the economic activities in South Africa and analyze its state of development. Major Economic Activity in South Africa South Africa has a lot of influence throughout multiple levels of economic activity; from primary production to quinary services. Regarding the primary level of economic activity, they have a agriculture sector that covers both subsistence farms and commercial farms. Subsistence farms by definition consume what they produce in order to survive, whereas commercial farms produce a good in excess in order to sell it in a market for the purpose of gaining a profit (Doberstein, 2011). Through the influence of modern innovation and technology, South African farms are able...
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...Plenary Topic: Economic Development in Africa Country: Greece Good morning/afternoon fellow delegates and honorable chair: The United Nation’s Charter pledges to "promote higher standards of living, full employment, and conditions of economic and social progress and development". Guiding the United Nations endeavors is the conviction that lasting international peace and security are possible only if the economic and social well being of people everywhere is assured. As the global center for consensus building, the UN has set priorities and goals for international cooperation to assist countries in their development efforts and to foster a supportive global economic environment. An ancient and democratic governmental system allowed Greece’s economy to quickly develop. Greece became a country brimming with resources and wealth due to its economic advancements in a developing world. However, a staggering six-year economic recession has led Greece to be dependent on and supportive of the UN’s promise to aid economic development. More than 100,000 businesses have closed, roughly a quarter of Greek households live close to the poverty line, many banks have shut down, and debt weighs heavily upon our nation. We, as a country, are just beginning to recover. In spite of economic struggles, the people of Greece have felt only a small fraction of the economic hardships and poverty that people in Africa have been facing for years. Africa is the poorest of all inhabited countries...
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