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SA Inc Fieldwork Research
Perspectives on South Africa’s reputation on the African continent
17 November 2015
Contents
● Perspectives on SA’s reputation on the African continent – Research
publications & dissemination
● South Africa’s Performance on the 2015 Nation Brand Index
● Indices on SA’s Global Competitiveness
● Brand SA fieldwork research – The SA Inc Series
2
Presentation prepared by Brand SA Research.
Readers are welcome to use the data contained in this report for their own purposes provided
they acknowledge the source.
THE SA INC SERIES
Brand SA Fieldwork Research
Research publications & dissemination
4
Research publications & dissemination
5
Overview: The SA Inc. Research Project
The SA Inc project aims to:
Contribute to the development of a framework of analysis that considers all
the elements of South Africa’s strategic economic, diplomatic, multilateral, as
well as peace & security engagements on the continent – all of these elements
shape the brand reputation;
The project Rationale:
South Africa’s reputation is shaped by more than foreign policy, or trade
interactions. It is shaped by a divergent sets of relationships and interests.
Therefore depends on, and is influenced by a range of governmental, non-
governmental, and business relationships;
Towards an integrated nation brand analysis:
In addition such a framework of analysis will provide Brand South Africa with
an integrated view of South Africa’s footprint on the continent for strategic
marketing, communications, and reputation management projects.
Brand SA Fieldwork Research
Overview: The SA Inc. Research Project
Baseline of SA footprint per key African market - identify key reputational drivers (threats & opportunities)
Multilateral & Bilateral Relations
Peace & Security
Investment
Trade, FDI, Business
Inputs: Peace & Security;
Trade; FDI; Bilateral;
Multilateral activities and
associated value of such
activities
Output: Integrated
Framework of Analysis
Brand SA Fieldwork Research
Cycle 1 – 2014/15: Kenya, Nigeria, Ghana
Cycle 2 – 2015/16: Russia, Angola, DRC, Senegal
●Brand SA’s Africa strategy: development of SA presence & reputation in
select markets/multilateral environments (e.g. BRICS, and selected key
strategic markets);
●South Africa In(c) series research reports based on:
– direct fieldwork studies
– desktop research
•The SA In(c) series aims to develop holistic/integrated understanding of
SA footprint in international markets
Brand SA Fieldwork Research
The SA Inc. Project: Fieldwork
SA Inc. Project: Kenya – South Africa Bilateral Trade
Total Bilateral Trade (2014)
Kenya Imports from SA
R 7 822 930 304
SA Imports from Kenya
R 366 206 571
Total Bilateral Trade R 8,189,136, 875
Brand SA Fieldwork Research
SA Inc. Project: Kenya Key Findings
The fieldwork yielded several insights regarding both challenges and
opportunities for interaction between the countries.
From a reputational point of view SA has major influence on two fronts:
1.As a result of SA democratic transition, strong institutions;
2.As a result of major interest in SA music & culture.
However, through the fieldwork it has become apparent that:
1.SA is seen as losing its competitive edge, & that it is not doing enough to
promote internal development;
2.The SA character or personality perceived as imposing and aggressive;
3.SA companies losing to local competition due to poor market entry strategies
and ‘know it all’ attitudes.
Brand SA Fieldwork Research
SA Inc. Project: Nigeria – South Africa Bilateral Trade
Total Bilateral Trade (2014)
Nigeria Imports from SA
R 10 546 842 578
SA Imports from Nigeria
R 55 704 188 272
Total Bilateral Trade R 66 251 030 850
Brand SA Fieldwork Research
SA Inc. Project: Nigeria Key FindingsFrom a reputational point of view SA has major influence on several fronts:
1.With more than 150 companies active in the market, SA is highly visible, and respected in many areas of national competency
2.SA’s democratic transition, institutional & infrastructural profile appreciated & often referenced as key attractiveness feature
3.Nigerian respondents keen to interact with & explore opportunities with SA for business & investment interactions and for cultural, music, tourism & related experiences
However, through the fieldwork it has become apparent that:
1.While SA has a major business and investment footprint in market, concerns exist about the South African character and business culture
2.With Nigeria’s rebased GDP some consider SA to be losing competitive edge
3.SA character/business persona at times perceived as imposing & aggressive
4.SA companies losing to local competition due to quick adaptation & learning by local competition and lack of identifying & involving local partners in market entry, maintenance, and expansion strategies
Brand SA Fieldwork Research
SA Inc. Project: Ghana– South Africa Bilateral Trade
Total Bilateral Trade (2014)
Ghana Imports from SA
R 3 723 629 774
SA Imports from Ghana
R 7 101 559 112
Total Bilateral Trade R 10 825 188 886
Brand SA Fieldwork Research
SA Inc. Project: Ghana Key Findings
South Africans & their corporate governance, managerial, technical, & other
expertise respected; reflects positively on reputation of the nation brand
Strong people-to-people relations & potential for expansion in creative
spheres
Nation’s reputation in international markets rely on more than government-
to-government relations, & mostly shaped by experience & perceptions of
South African individuals and corporate brands
SA corporates & their products & services widely known & utilised in market
Ghanaians appear to prefer ‘international brands’, incl. those from SA
Tremendous potential in building deeper social & cultural relations via
music, arts, design and cultural diplomacy
SA entrepreneurs use Accra as regional base/hub for West African business
operations
Brand SA Fieldwork Research
SA Inc. Project: Angola– South Africa Bilateral Trade
Total Bilateral Trade (2014)
SA Exports to Angola
R 11 402 454 851
SA Imports from Angola
R 21 832 185 992
Total Bilateral Trade R 33 234 640 843
Brand SA Fieldwork Research
SA Inc. Project: Angola Key Findings
Given SA’s ‘bi-polar’ history with Angola, carefully select expats and South African
experts to be deployed in the market
Be aware of fact that Angolans describe themselves as arrogant, and that South
Africans are also criticised as being arrogant – need for increased cultural contact
and building of mutual understanding
Understand political and administrative context and “do homework”! Invest
adequate resources (time and money) in preparing to enter the market
Take time & invest in relationship-building; identify a reliable local partner
Recognise importance of language and (business) culture, e.g. Portuguese South
Africans play a constructive role in several SA corporates in the market
Leverage off strong bilateral political relations
Approach Angolan government with ‘what can we do for you’ rather than ‘we are
great at this and will bring it to you’
Brand SA Fieldwork Research
Activities and Outputs
● Fieldwork Russia, July 2015
● Research Report, The Ufa Declaration and its Implications for the
BRICS Brand, published 30 September 2015
● Dissemination at roundtable discussion, 30 September 2015
Theme: Deepening the relationship between Brazil, Russia, India, China
and South Africa
Panellists:
o Prof Garth Shelton, University of Witwatersrand
o Ms Catherine Grant-Makokera, Tutwa Consulting
o Counsellor Eric Sogocio, Head of the BRICS Section, Embassy of Brazil
o Mr Yaroslav Shishkin, Deputy Head of Economic Section, Embassy of the
Russian Federation
o Mr. Randhir Jaiswal, Consul General of India
The SA Inc. Project: Russia / BRICS 2015 (1)
Brand SA Fieldwork Research
20
At the seminar Brand SA shared a research
report ‘The Ufa declaration and its implications
for the BRICS brand’.
Most importantly the report highlights the
successes of the BRICS in terms of
implementing Summit decisions, and the
implications increased
formalisation/institutionalisation has for the
development of the organisation.
This is an issue very few analysts have written
about especially in the context of how the
development of the organisation is reflecting
positively on the global governance capability
of the five member states.
The SA Inc. Project: Russia / BRICS 2015 (2)
Brand SA Fieldwork Research
The SA Inc. Project: Publications (2014-2015)
A lesson for Brand SA from Nigeria - Be bold, keep it real, and make it quick -
a conversation on the art of Nollywood success. 23 August 2014, Brand South
Africa Research Note. By: Dr Petrus de Kock
Researching the Nation Brand – background to the concept, and initial
findings from fieldwork in Kenya and Nigeria. 18 September 2014. South Africa
In(c) Series Research Report #1 By: Dr Petrus de Kock
African market entry strategy – learning to listen & listening to learn. 12
December 2014. Brand South Africa Research Note #2. 2014. By: Dr Petrus de
Kock
Developing an SA Inc strategy for the Nation Brand, 28 July 2015, Brand South
Africa Research Report, By: Dr. Judy Smith-Höhn & Dr Petrus de Kock
The Ufa Declaration and its Implications for the BRICS Brand, 30 September
2015, Brands South Africa Research Note, By: Dr. Petrus de Kock
SA Inc Project: Angola Fieldwork Research Report, 16 November 2015, Brand SA
Fieldwork Report, By: Dr. Petrus de Kock & Dr. Judy Smith-Höhn
Brand SA Fieldwork Research
GLOBAL COMPETITIVENESS
Indices
Nation Brand Performance – Governance
Governance Indicators
WEF – Institutions = 38/140 (2015)
WEF - Efficiency Of Legal Framework In Settling Disputes = 14/140 (2015)
WEF - Transparency Of Government Policymaking = 39/140 (2015)
WEF – Financial Market Development = 12/140 (2015)
IMD – Government Efficiency = 35/60 (2014)
Open Budget Index = 3/102 (2015)
World Press Freedom Index = 39/180 (2015)
South Africa’s Performance
Nation Brand Performance:Corporate Governance
Strengths:
Improvements:
Challenges:
Sources: World Bank Ease of Doing Business Index 2015/16, WEF 2015 Competitiveness Report
• Protecting investors (17)
• paying taxes (19)
• resolving insolvency (39)
• Institutions (38)
• Goods & market efficiency (38)
• Business sophistication (33)
• Fin. market development (12)
• market size (29)
• Protecting minority investors (17 to 14)
• Cost of getting electricity
• technological readiness (66 to 50)
• innovation (43 to 38)
• labour market efficiency (113 to 107)
• health and primary education (132 to 126)
• macroeconomic environment (89 to 85)
• starting a business (61 to 120!)
• construction permits (32 to 90!)
• Enforcing contracts (46 – 119!)
• Trading across borders (100 – 130)
• infrastructure (60 to 68) – however, note strengths in Quality of Air Transport Infrastructure @ 14/140 countries
• goods & market efficiency (32 to 38)
World Bank – Ease of Doing Business Index 2012-16
South Africa Performance in Doing Business Index
Comparative DBI DBI 2012/13 DBI 2013/14 DBI 2014/15 DBI 2015/16
Over-all ranking 39 41 43 73/189
Criteria
Starting a business 53 64 61
120
Registering Property 79 99 97
101
Trading across borders 115 106 100
130
Dealing with construction permits 39 26 32
90
Getting credit 1 28 52
59
Enforcing contracts 82 80 46
119
Getting electricity 150 150 158
168
Protecting minority investors 10 10 17
14
Paying taxes
32 24 19 20
South Africa vs Singapore
26
EDB Overall Ranking-2015/6South Africa: 73Singapore: 1
World Bank Ease of Doing Business Index 2015
Source: World Bank (2015): Doing Business 2015: Going Beyond Efficiency
0
20
40
60
80
100
120
140
160
180
Ease of Doing Business Rank
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering a Property
Getting CreditProtecting Minority Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Singapore
South Africa
South Africa vs New Zealand
27
EDB Overall Ranking-2015/6South Africa: 73New Zealand: 2
World Bank Ease of Doing Business Index 2015
Source: World Bank (2015): Doing Business 2015: Going Beyond Efficiency
0
20
40
60
80
100
120
140
160
180
Ease of Doing Business Rank
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering a Property
Getting CreditProtecting Minority Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
New Zealand
South Africa
South Africa vs Denmark
28
EDB Overall Ranking-2015/6South Africa: 73Denmark: 3
World Bank Ease of Doing Business Index 2015
Source: World Bank (2015): Doing Business 2015: Going Beyond Efficiency
0
20
40
60
80
100
120
140
160
180
Ease of Doing Business Rank
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering a Property
Getting CreditProtecting Minority Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Denmark
South Africa
South Africa vs Korea
29
EDB Overall Ranking-2015/6South Africa: 73Korea: 4
World Bank Ease of Doing Business Index 2015
Source: World Bank (2015): Doing Business 2015: Going Beyond Efficiency
0
20
40
60
80
100
120
140
160
180
Ease of Doing Business Rank
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering a Property
Getting CreditProtecting Minority Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Korea, Rep.
South Africa
South Africa vs Hong Kong
30
EDB Overall Ranking-2015/6South Africa: 43Hong Kong: 5
World Bank Ease of Doing Business Index 2015
Source: World Bank (2015): Doing Business 2015: Going Beyond Efficiency
0
20
40
60
80
100
120
140
160
180
Ease of Doing Business Rank
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering a Property
Getting CreditProtecting Minority Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Hong Kong SAR, China
South Africa
WB Ease of Doing Business Index 2015: The Next 11
31
World Bank Ease of Doing Business Index 2015
Source: World Bank (2015): Doing Business 2015: Going Beyond Efficiency
The Mo Ibrahim Index of African Governance 2015 (3)
● South Africa ranks 4th out of 54 countries overall
● Scores in the Top 10 in all four categories
Nation Brand Performance: Political Governance
Safety &
Rule of Law
Sustainable
Economic
Opportunity
Participation
& Human Rights
Human Development
2nd 6th4th7th
Source: Mo Ibrahim Foundation, 2015 IIAG
Transparency International’s Corruption Perception Index 2014
BRICS
The Next 11
Indices
Prepared by Brand SA Research
Contact:
Dr Petrus de Kock, GM – Research
Dr Judy Smith-Höhn, Research Manager
Ms. Leigh-Gail Petersen, Researcher
Readers are welcome to use the data
contained in this report for their own
purposes provided they acknowledge the
source.
35