Global companies in SA
Global companies with a presence in South Africa all cite numerous advantages for setting up shop in the country, from low labour costs to excellent infrastructure - and as a base to export products internationally.
"Nearly 50% of the American Chamber of Commerce's member companies are Fortune 500 companies, and over 90% operate beyond South Africa's borders into southern Africa, sub-Saharan Africa and across the African continent", says Jim Myers, president of the American Chamber of Commerce in South Africa.
"The sophisticated business environment of South Africa provides a powerful strategic export and manufacturing platform for achieving global competitive advantage, cost reductions and new market access."
Acer Africa
Acer Africa acquired ownership of a locally based company they had been working with to distribute peripherals and printers since 1980, in 1995.
They chose South Africa as they recognised the plethora of
opportunities as local information technology companies started to normalise according to world standards. Acer Africa was established as a base to export to the Southern African Development Community (SADC), Angola and the islands along the Indian Ocean.
The country boasted good infrastructure, banking and telephone systems and the water and power rates were exceptional, making South Africa a sound and valid business location.
"South Africa is the only port of entry to Africa, the only place that one would be able to succeed…" - Peter Ibbotson (Acer Africa)
Acer Africa
Agrid South Africa
Agrid South Africa, an offspring of Agrid International, was formed in July 1999. They are the manufacturers of diesel/petrol engines and agricultural implements for small farmers, a sizeable change from their history of manufacturing for massive farming.
Agrid South Africa has
focused 100% of its efforts on exporting their products to Europe and other African countries, more specifically Kenya, Nigeria, Angola and Uganda. However, they recently found a gap in the local market for their products.
Agrid chose South Africa for its established and proven manufacturing base, skilled labour at reasonable rates and readily available management. Other attractive factors were the expansion of the motor industry, excellent telecommunications, good infrastructure and the accessibility of Sub-Saharan Africa, South America and Australia.
"I see South Africa as a low-cost manufacturing base for exporting products to the world." - Ralph Weeks (Agrid South Africa)
Arid SA
Alcatel
"Alcatel has built its worldwide reputation on its production. Investing with local partners (electronic group Altech and black empowerment company Rethabile) in South Africa
has meant that we have demanded a high standard of technology and capability and believe that in many respects South Africa compares very favourably with the most advanced countries in the world." - Bernard Vaslin, Executive Vice President, Alcatel
Alcatel SA
BMW South Africa
"In December 1994, BMW opened its Land Rover assembly plant in Rosslyn, and the following year saw the company focus single-mindedly on providing only one model platform under the BMW badge, namely the four-door 3-series range.
"This strategic decision allowed BMW to produce the 3-series in volumes and to the quality standards required to be competitive in the global export market.
"The company has recognised quality systems in place to be able to develop new manufacturing technologies, components and systems for motor vehicles in South Africa." - Peter Foster, Managing Director (SA), BMW
BMW SA
Britannia Biscuits
Access to the local and Southern African market was one of the key factors in choosing South Africa as an investment destination.
Extensive research found that there was great potential in the region for Britannia Biscuits to set up a manufacturing base for its key products which include biscuits, snacks and confectionery.
Britannia Biscuit believes that South Africa is "one of the most phenomenal markets" with great opportunities for doing business. The company has found that real production costs in South Africa are lower than in South East Asia where it too has operations.
"You do not get any better in Africa than South Africa. This is the Jewel of Africa…..In South Africa you have the first world infrastructure and third world costs." - Britannia Biscuits MD Sam Ahmed
Britannia Biscuits
Cisco Systems
Cisco Systems established business in South Africa in 1989 and became the exclusive partner to Dimension Data. Cisco Systems was to become the African headquarters.
As a business location, South Africa afforded an educated, affluent and well-trained labour force. The infrastructure was very well developed in terms of transport and communications affirmed the country as the gateway to Africa.
The work ethic can be compared to that of Europe and America with no apparent language barriers, which poses a knowledgeable and business friendly environment that makes doing business in South Africa both comfortable and convenient.
Cisco Systems has committed itself to developing South Africa as a nation through networking academies in association with local Universities and Technikons. The ultimate goal of the company is to produce a skilled and well-trained force and in that process also create employment.
Cisco Systems SA
EDS South Africa
EDS South Africa was formed through the merger of three local IT companies in 1995 and by September 1999 was a wholly owned subsidiary of EDS Corp.
South Africa was recognised for its potential of significant economic growth, but in order to be competitive in the international market, it needed to deploy the latest business tools within the information technology market.
EDS South Africa found that it had the experience and capabilities to realise South Africa's growth potential. A reputable presence in over 40 countries worldwide and a willingness to extend the geographical boundaries is testament to that.
Entering the South African market was based on a balance of commercial gain versus socio-economic and political stability. It was also motivated by the positive impression of South Africa's commercial opportunities and the encouraging
statements made by the government to create a stable business environment.
EDS South Africa
EMS VEN
The British-based EMS chose South Africa as a site because of its close proximity to Europe, similar banking, accounting and legal systems to the United Kingdom. The fact that there are no real time zone differences or language barriers between South Africa and the United Kingdom were also contributory factors.
The company found that it could operate successfully in South Africa, be productive and cost effective because "labour in South Africa is very trainable". Training, EMS Ven believes was the key to its success while at the same time believing that the level of schooling and education is as good as anywhere in the word. "Schooling is better than many other countries and more affordable."
South Africa is being targeted to become the company's central manufacturing base
especially in view of the rising levels of skills and labour productivity.
"Everything that we need in order to develop a world-class business is here in South Africa." - EMS-VEN MD Paul Williams
General Electric
"The re-entry of General Electric (USA) to the South and Southern African market has been exciting and has well exceeded our operating plan expectations.
South Africa's excellent infrastructure together with first-class financial, legal and commercial systems, makes this country a natural location to pursue the significant opportunities of South and Southern Africa.
The friendly business environment ensures that we can run our business efficiently, and we look forward to successful and profitable operations in Southern Africa that meet our global goals and create wealth for the GE shareholder." - Michael C Hendry, President GE South Africa, General Electric
GE SA
Hertz International
"With South Africa's return as a fully fledged member of the international community, there has been a resurgence of both business and holiday travel. As a result Hertz felt that it was essential to establish a substantial car rental operation to service this strategically important, fast-growing market.
"South Africa enjoys a sophisticated financial market that can facilitate the rapid expansion of a capital intensive industry like car rental. The market in South Africa presents Hertz with an excellent business opportunity as the country continues to become more closely integrated into the global community." - Charles Shafer, Vice-President, Hertz International
Hertz SA
Levi Strauss
"South Africa's financial industry is dynamic and highly sophisticated, with many South African financial
institutions, large and medium-sized, powerfully taking their place on a global stage and successfully competing with the very best and most established institutions in the world.
"The dynamics of change and development in this particular industry in South Africa are stimulating new and exciting development in the economy as a whole, and are rapidly integrating South Africa with a greater global village.
"To operate in an environment as sophisticated and as dynamic as this has helped Levi Strauss achieve a return on investment two years ahead of projections." - Wadell Blackwell, Managing Director, Levi Strauss (SA)
Levi Strauss
Johnson Controls
Dorbel, a locally based company invited Johnson Controls into South Africa to produce seats for Volkswagen worldwide. The company produces cockpit seat liners, headliners and central steering columns, but they have been exporting leather
and front ends for Volkswagen since 1995.
The decision to come into South Africa was a strategic one, influenced by the reasonable labour rates the country offers and the government's SMMDP incentive, which was very attractive after the tax holiday was discontinued.
South Africa as a business location proved to be the best destination for Johnson Controls. It boasted a brilliant level of intelligence that was complimented by strong commitment and superb service.
"The asset of South Africa is its people. They are willing and committed…" - Eleugene Human (Johnson Controls)
Johnson Controls
Southern Africa Investments Limited
"An abundance of natural resources, political stability and an excellent business infrastructure make South Africa an interesting business proposition for Singaporean companies." - S Chandra Das, Chairperson, Southern Africa Investments (Pty)
Ltd
Southern Africa Investments Limited
Senior Flexonics
Senior Flexonics, a manufacturer of automotive components, set up operation in 1997 as part of the company's drive to become the lowest cost producer and highest volume sourcer for flexible connectors in the world.
Close to 100% of the South African operation's production is exported to companies such as GM, Ford, Rover and Alpha Romeo. Globally, Senior Flexonics supplies 10% of the world market, with 2% of the total production coming from the South African operation.
The company has been able to take advantage of the benefits of the Motor Industry Development Programme (MIDP), an incentive scheme provided by the South African government. The programme is founded on a gradual reduction in tariff protection to expose the local industry to competition, encouraging higher volumes and greater specialisation by allowing
exporting firms rebates on import duties and a range of incentives designed to upgrade industry capacity.
Senior Flexonics chose South Africa as an investment destination over India and Brazil not only because of issues relating to quality but it to benefit from the easily access to stainless steel and cheap electricity. The production of catalytic converters requires high levels of electricity, which it is able to access at extremely competitive rates.
Singapore Airlines
"The South African natural environment, its diversity, the richness of its peoples and landscape … its magnificent quality of life with all comforts of the first world provide an irresistible magnet for tourists and for business people who want to explore this exciting country to realise business opportunities.
"Aviation will have a fundamental role to play in the expansion of South Africa's trade and tourism sectors. On its part, Singapore Airlines remains committed to
the South African market, and will continue to focus on enhancing its services and exploring new opportunities." - Dr Cheong, Singapore Airlines
Singapore Airlines
SMG Corporation
"SMG Corporation is serious about capturing a major share of the Southern African market - one which we believe has great growth potential for the future.
"We believe South Africa offers a vital platform for other markets in Africa and provides an extremely well-developed physical infrastructure to cater for our entry into the regional market.
"We invested in South Africa and the South African market because we have great confidence in its highly developed business infrastructure to support the manufacturing, distribution and marketing of our products - to the region as well as for export to the world." - Dato AH Samsudin, Chairman, SMG Corporation
Volkswagen South
Africa
Volkswagen South Africa is a subsidiary of Volkswagen of AG. It is a company that follows the world-class quality standards that are set by their parent company, who also manage to keep abreast of technological development in motor manufacturing.
Volkswagen SA is a known leader in affordability and it achieved great success with the introduction of the Citi Chicco in 1995. Apart from exporting built-up units to overseas markets, Volkswagen SA also exports body and engine parts and catalytic converters to countries like Argentina, Spain, Belgium and Germany.
Volkswagen SA employs 6 500 people, which makes it the largest foreign employer in the country. Volkswagen SA is committed to providing South Africa with cars of exceptional quality.
VW SA
Success stories sourced from Trade and Investment South Africa
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