Working and Business Practices in South Africa
Business Practices in South Africa are similar to those in Europe, however if you are conducting business in Cape Town you might experience African time sooner or later.
South Africa has been inhabited for thousands of years and has experienced a unique national evolution brought about by two main factors: immigration from Europe and mineralogical wealth. Hence business practices and etiquette have been developed out of a unique combination of culture mix and hard work and of course the side effects of Apartheid.
A great wealth of natural resources has spurred South Africa on to becoming Africa’s industrial hub. South Africa is the largest and most developed economy in Africa, with a GDP per capita that places us in the top 50 wealthiest in the world. Our economic infrastructure is sound and well-managed, and our great promise as a vital emerging market economy brings with it the potential for overseas investment.
The cultures of Western societies and that of Africa are staunchly different. Among these differences are differences in food, dress, child rearing practice and even dealing with business. Business and trade are complicated things, and different cultures have strangely nuanced ways of dealing with them in order to creative successful balance of trade and in order to make money.
Business Practices South Africa - African time
On the whole when it comes to conducting business in South Africa, Western business rules and etiquette are generally adhered to, but this being Africa you well undoubtedly experience what is called “African time” sooner than later.
Business Practices South Africa - Money matters
Whilst this is not the case in South Africa, consider Ghana for example to illustrate the important difference in the cultures. In Ghana specifically, businessmen are much more inclined to borrow monies from Caucasian men who have wealth. This is one of a few African business practices that Western business society would probably find to be irresponsible or perhaps even unethical. In addition to their willingness to borrow money, African business people do not see the need to ever pay back these “loans” and in effect, consider them to be gifts.
Generally speaking money is looked upon differently in African culture. Africans see it as something that is necessary for sustenance, but anything beyond what can suffice is seen as unnecessary, although with the continued integration of Western values and norms this is changing. In the West where the business world encourages accumulation of possessions and of wealth, this idea would seem as foreign as those who perpetrate it.
Another important difference in the business cultures of the two areas is planning. In the west we tend to carefully chart and examine our moves months or even years ahead of schedule. We know where there money will be and how it will multiply. In an ever changing African culture, business people must be able to adapt quickly to situations that may arise as a result of famine, war, or widespread disease.
Business practices South Africa - Decision making
Seniority and position hold sway over an otherwise somewhat egalitarian society in South Africa. Due respect is granted to those who have made their way to the top through hard work and persistence. In South African companies decisions are generally made from the top down.
Nonetheless, African culture prefers that a final decision be preceded by full consultation of all parties before being implemented. Deference to one’s ancestors and elders is paramount in African culture, and offense will be taken should anyone display a lack of proper respect (particularly in more rural areas).
Generally, working hours in South Africa are Monday to Friday, 8-8.30 am to 5pm. South Africans rarely work on Saturdays and Sundays.
Greetings in South Africa vary from culture to culture. In most cases, a firm handshake will do the trick, but every culture has its own preference. English-speakers, on the whole, are likely to be more formal and polite, whilst Black South Africans embrace informality and more personal greetings.
Business Practices South Africa: General Business Etiquette
- Schedule business appointments as far in advance as possible, and always confirm the appointment by calling the day before.
- Formal meetings and appointments usually begin and end on time.
- In a work environment, colleagues and superiors are usually addressed with their first name.
- South Africans are transactional and do not need to establish long-standing personal relationships before conducting business.
- Appointments should be made starting at 9 or 10 am. The time, meetings are scheduled often depends on the location of the meeting and criteria like rush hour traffic.
- Do not rush deals. South Africans are very casual in their business dealings.
- Business cards have no formal exchange protocol.
- Dress conservatively, particularly for initial meetings with new business associates.
Business practices South Africa: Maintaining working relationships in South Africa
- For the most part, South Africans prefer to do business with those they have met previously.
- A vital part of African culture is respect for one’s ancestors and elders. It is deemed highly offensive to most South Africans if the proper respect for an elder is not shown, especially in more rural areas.
- If your company is not known in South Africa, a more formal introduction may help you gain access to decision-makers and not be shunted off to gatekeepers.
- Networking and relationship building are crucial for long-term business success.
- Most businessmen are looking for long-term business relationships.
- There are major differences in communication styles depending upon the individual’s cultural heritage.
- Most South Africans, regardless of ethnicity, prefer face-to-face meetings to more impersonal communication mediums such as email, letter, or telephone.
Business Practices: Business practices South Africa: Networking
- On the whole, titles are not used in South African business settings. However, some honorary doctorates may wish to be addressed in this way.
- Initial meetings for South African companies are about establishing personal rapport and developing mutual trust, two vital elements in South African business culture.
- The overall aim during business negotiations in South Africa is to reach a general consensus. South Africans prefer to see a fair, win-win situation where all sides gain something from the deal.
- Don’t be surprised if your South African business colleagues ask what may seem to be personal questions about your way of life after a relatively brief period of time. You on the other hand should remember personal information important to your colleague or business partner (like names of wife and children), to show genuine interest.
Business Practices: Business Meeting Etiquette
- Meetings are often held at coffee shops or restaurants. Its a good idea, to scout around for coffee shops with Wifi capabilities and a quiet vibe before suggesting a location for a meeting.
- Appointments are necessary and should be made as far in advance as possible.
- It may be difficult to arrange meetings with senior level managers on short notice, although you may be able to do so with lower-level managers.
- It is often difficult to schedule meetings from mid-December to mid-January or the two weeks surrounding Easter, as these are prime vacation times.
- After a meeting, send a letter summarizing what was decided and the next steps.
Business Practices South Africa: Business Negotiations
- It is imperative to develop mutual trust before negotiating.
- Do not interrupt a South African while they are speaking.
- South Africans strive for consensus and win-win situations.
- Include delivery dates in contracts. Deadlines are often viewed as fluid rather than firm commitments.
- Start negotiating with a realistic figure. South Africans do not like haggling over price.
- Decision-making may be concentrated at the top of the company and decisions are often made after consultation with subordinates, so the process can be slow and protracted.
Business Practices South Africa: Business Dress Code
- Business attire is becoming more informal in many companies. However, for the first meeting, it is best to dress more conservatively.
- Men should wear dark coloured conservative business suits.
- Women should wear elegant business suits or dresses.
- South Africans of Urban cultures generally wear western dress.
- Dress well in public, it will be expected by your South African host.
Please read more on work permit & visa options for South Africa here.
Should you have any questions with regard to immigration to South Africa or conducting business in South Africa, please feel free to contact one of our experienced immigration consultants.
