Exporting to South Africa
Why do business with South Africa?
Africa’s southernmost country is racking up quite a few records: after Nigeria, it has the largest and most diversified economy on the continent and is the world’s leading producer of gold, platinum, and macadamia nuts. But the country also has the highest Gini coefficient in the world and the highest CO² emissions in Africa.
South Africa serves as the gateway to the African continent and boasts the most developed infrastructure in the region, including eight international ports. The country is rich in natural resources, offers opportunities in sectors such as agriculture, renewable energy, and infrastructure, and is the financial and business hub for all of Southern Africa.
Key reasons to do business with South Africa are:
- Strategic location: The country is an excellent starting point for trade with the rest of the African continent.
- Developed infrastructure: There is a strong network of highways, railways, and logistics hubs.
- Financial hub: It has a mature banking sector and strong financial institutions.
- Sectors with potential: There are many opportunities for Western companies, particularly in agribusiness, logistics, and green energy.
- Language and culture: English is the working language in business, and the legal systems are transparent and based on Anglo-Saxon law.
What is the best market approach for South Africa?
Johannesburg: Paris of South Africa
The economic center of gravity is the province of Gauteng (“place of gold” – where the first gold was found) (Johannesburg and Pretoria). This province accounts for 33.2% of South Africa’s GDP (2023). This is followed by the provinces of KwaZulu Natal (Durban) (16.2%) and the Western Cape (Cape Town) (14%), and finally the Eastern Cape (Port Elizabeth Gqberga) (8%). Some sectors have their center of gravity in another province. For logistics, for example, it is Durban (largest port); most supermarkets or asset managers are in Cape Town. Sandton, a borough of Johannesburg, has the most headquarters (and decision-making centers) and is also the banking center of South Africa (and the largest on the African continent).
How to do business with South Africa?
Doing business in South Africa requires a great deal of patience and a personal approach. It is a relationship-oriented culture: build trust and a good rapport first before discussing contracts. Schedule multiple visits and do not expect a quick deal.
Tips to score in South Africa?
LANGUAGE
The general lingua franca is English, but there are officially 12 languages, including Afrikaans, which is very similar to Dutch. The main local language is Zulu (primarily spoken in KwaZulu-Natal). Xhosa (Eastern Cape Province) and Vendi (Limpopo Province) are the other most widely used languages. The other languages are: Sepedi, Sesotho, Setswana, siSwati, Xitsonga, isiNdebele, isiXhosa, and South African Sign Language (SASL – a sign language).
CULTURE
South Africa has an Anglican and African culture. There is still much respect for English culture, and there are also American influences. It is best to avoid sensitive topics such as politics and religion (unless one has known and trusted the opposing side for a long time); also avoid the colonial past (and apartheid).
MEETINGS
Always be on time. Excuses don’t help and make no impression. Don’t get ahead of yourself after an initial positive reaction from your business partner. Be sure to thoroughly verify who your partner is based on references, your network, and desk research. Always send an email after a meeting summarizing the agreements made.
GREETING
South African business culture is quite informal and direct. Business partners address each other by their first names and are generally dressed casually. Formal attire is only required for official events. A (Western) handshake is customary upon first meeting, with the second hand possibly placed on the first (as a sign of politeness – only within the Black community). Special notifications: Afrikaans: “Howzit” or “Hoe Gaan dit”? Zulu: “Sawubona”. For ladies: a hug is permitted.
COMMUNICATION
Most professional communication takes place via email. For quick, short messages, one can use WhatsApp, although it is not used as much as in neighboring countries. Send a message first (via SMS or WhatsApp) before calling by mobile phone. For high-level positions, always communicate with the PA (personal assistant) or always place them in copy. Avoid the postal service – it does not work at all; use a courier service if necessary.
BUSINESS LUNCH – DINNER
Business lunches and dinners are permitted and can certainly be a good way to strengthen relationships. South Africa has a very good culinary culture thanks to the many tourists and historical ties with India, the Netherlands, and the United Kingdom. People prefer lunch over dinner during the week. Business lunches do not last longer than 2 hours. Note that people tend to start work early (7 – 8 am) and therefore do not appreciate late dinners.
PAYMENTS, PRICING AND CLOSING DEALS
South Africa has a strong financial sector. South African banks are active on the continent. South Africa is also connected to the SWIFT system for international payments, facilitating their execution. However, there is still strict currency control by the national bank. International payments by private individuals are limited to 1,000,000 Rand; for businesses, this is 10,000,000 Rand. If this amount is exceeded, separate authorization is required.
This usually takes place in consultation with the local partner. For long-term contracts, this is certainly done with the CEO/MD and, where applicable, the line manager responsible for the matter. Negotiations can be conducted with a local lawyer or consultant if necessary. Always request that everything be discussed in English and that the agreement be concluded with action points and a written contract. Also, always indicate in which country matters will be settled in the event of disputes. South Africa has Anglo-Saxon jurisdiction.
It is customary to determine the price in the local currency (ZAR). For imported goods, it is also possible to use Euros or USD. Other currencies are not permitted. Always indicate which logistics costs are included. e.g. CIF (“Cost Insurance Freight”) i.e. cost of the goods to the factory gate or “landed cost”. EXW “ex works” i.e. the cost at the factory gate, transport at the buyer’s expense, FOB Free on Board. Price to the ship.
VAT IN SOUTH AFRICA
In South Africa, the standard rate for sales tax (VAT, or locally known as VAT) is 15%. This rate applies to most goods and services, although some basic foodstuffs are exempt or subject to a zero rate.
Travelers and tourists have the option to reclaim the VAT paid on items taken out of the country. This can be done at special VAT Refund Administrators at international airports (such as O.R. Tambo in Johannesburg or Cape Town). You can find more information about this on this website: www.zuid-afrika.nl
REGULATIONS
Because South Africa was formerly a British colony, it is administratively very well developed, with the necessary laws and regulations. In practice, everything can be found on the website of the ministry or agency responsible for the matter. The most important ministries are DTIC (Department of Trade, Industry & Competition), DALRRD (Department of Agriculture, Land Reform, and Rural Development), and DIRCO (Department of International Relations and Cooperation).
Embassies in South Africa
We advise every company to have a partner in South Africa thoroughly screened before starting a collaboration. You can contact your country’s local embassy for this.
BELGIUM
Belgische Ambassade Zuid-Afrika
625 Leyds St, Muckleneuk,
Pretoria, 0002,
Zuid-Afrika
T: +27 (0)12 440 3201
pretoria@diplobel.fed.be
Hr Paul Jansen
Ambassadeur
Mw Sandra Helleners
Adjunct Posthoofd
Consulaat-generaal van België in Kaapstad
“The Halyard”, 22nd floor
4 Christiaan Barnard Street
Foreshore
Kaapstad 8001
T: +27 21 419 46 90
E-mail: Capetown@diplobel.fed.be
Hr Nicolas Fierens Gevaert
Consul-generaal
Mw Vanya Kips
Flanders Investment & Trade
Hr Thomas Castrel
Algemeen vertegenwoordiger
Tel: +27 (0)12 460 0781
E-mail: pretoria@flanders.eu
Hr Luc Fabry
Trade & Investment Commissioner
Tel: +27 12 051 0956
E-mail: johannesburg@fitagency.com
Awex – Walloon Export & Foreign Investment
Ms Catherine Bauwens
Trade & Investment Commissioner
Tel: +27 (0)11 463 0378
E-Mail: johannesburg@awex-wallonia.com
THE NETHERLANDS
210 Florence Ribeiro Avenue
Cnr Muckleneuk Street
0181 Nieuw Muckleneuk
Pretoria
Zuid-Afrika
Tel. : tel:+27-124-25-45-00
Mw Joanne Doornewaard
Ambassadeur
x@minbuza.nl
Nederlands Consulaat-Generaal
Strandstraat 100
Kaapstad 8001
Zuid-Afrika
Tel.: tel:+27-21-421-56-60
Mw Hélène Rekkers
Consul-Generaal
LUXEMBOURG
Luxembourg does not have its own embassy in South Africa, but is represented there by the Royal Embassy of the Netherlands in Pretoria. Consular matters and visa-related inquiries are handled by the Embassy of Belgium in Pretoria.
USEFUL WEBSITES
Belgium
https://www.flandersinvestmentandtrade.com
https://www.flanders.org.za/
https://export.flandersinvestmentandtrade.com/nl/subsidies/
https://www.awex-export.be/fr/aides-et-subsides
https://info.hub.brussels/nl/subsidies/premie-om-te-exposeren-op-een-fysieke-beurs-het-buitenlandhttps://export.flandersinvestmentandtrade.com/nl/landen/zuid-afrika/infofiche
https://www.walloniaexportinvestment.be/fr/
https://southafrica.diplomatie.belgium.be/nl
https://hub.brussels/fr/developpement-international/
The Netherlands
https://www.nederlandwereldwijd.nl/contact/ambassades-consulaten-generaal/zuid-afrika
https://www.rvo.nl/onderwerpen/landen-en-gebieden/zuid-afrika
https://www.rvo.nl/onderwerpen/subsidiespelregels
https://www.kvk.nl/internationaal/alles-over-btw-en-internationaal-zakendoen/
https://ondernemersplein.overheid.nl/landeninformatie/zuid-afrika/
Luxembourg
Traveling to South Africa?
TIME DIFFERENCE
Summertime (late March to late October): No time difference. The clocks in Belgium and South Africa show the same time.
Wintertime (late October to late March): One hour later in South Africa. If it is 12:00 in Belgium, it is 13:00 in South Africa.
South Africa is in time zone UTC+2
FLIGHTS
There are direct flights from Amsterdam to both Johannesburg and Cape Town with KLM.
Flights via Emirates over Dubai or with Brussels Airlines/Lufthansa via Frankfurt are also possibilities.
HOTELS
For this, it is best to consult booking.com.
GETTING AROUND IN JOHANNESBURG – CAPE TOWN
Getting around Johannesburg can be done safely and efficiently via the Gautrain, ride-hailing services such as Uber, or a rental car.
Public transport with local minibuses is strongly discouraged for safety reasons.
In Cape Town:
- Uber and Bolt, are cheap and very convenient for trips around the city and to the airport
- Rental car: Handy if you want to explore the suburbs, the winelands or the Cape
- MyCity buses: A modern and safe bus network that runs in safe neighborhoods and the center.
- Hop-on-Hop-off bus: Especially for tourists along famous places
TIPS : - Don’t just get into an unknown taxi on the street, always use an app like Uber
- Avoid walking on the street late at night and also take an Uber for short journeys in the dark.
CURRENCY
Currency: 1.00 Euro 19.11 ZAR (South African Rand)
The South African Rand is the only legal tender in shops, restaurants, and hotels.
Visa and Mastercard are accepted everywhere.
DOCUMENTS
For stays of less than 90 days, travelers holding a European passport are exempt from a prior visa application.
A 90-day residence permit will be issued at the border upon entering South African territory.
MOBILE PHONES AND COMMUNICATION FACILITIES
Mobile calling and internet use via roaming is very expensive. The best options are buying a local SIM card or eSIM from Vodacom or MTN, or using Wi-Fi in accommodations.
Mobile Networks and Connectivity Vodacom and MTN have the best and largest network coverage throughout the country. Cell C and Telkom are alternative providers that often offer cheaper rates, especially in cities. Network coverage is excellent in cities and on main roads, but less so in remote game parks.
Buying a Local SIM Card (RICA Act) At the airport: Upon arrival at international airports (such as Johannesburg or Cape Town), you can go directly to the provider’s shops. Registration (RICA): Your passport and proof of stay (such as a hotel reservation) are required to register a SIM card.
Alternatives such as eSIM Digital SIM card: If your phone is compatible, you can use apps such as Airalo, Holafly or Purchase a Roafly eSIM for South Africa online in advance. Advantage: You have internet immediately upon landing and do not need to visit a physical store.
Our exhibitions in South Africa?
Tourist places near Johannesburg
APARTHEID MUSEUM
Exploring the Apartheid Museum is a powerful, moving, and shocking experience, making it one of the best places to visit in Johannesburg for anyone wishing to understand the city’s dark past. The series of compelling exhibits, personal stories, photographs, and artifacts brings to life the brutal system of racial segregation that was in place in South Africa from 1948 to 1994. The museum not only provides a raw and honest insight into life under this regime but also highlights the incredible resilience of those who fought against apartheid and ultimately put an end to it, making it one of the most valuable travel experiences in South Africa.
CONSTITUTION HILL
The old prison is now a museum, and a tour of the building provides a shocking insight into the barbaric conditions in which thousands of Black male prisoners (including Nelson Mandela) were held. And visit the women’s prison to discover the remarkable stories of female activists such as Winnie Madikizela-Mandela.
SOWETO NEIGHBOURHOOD
Soweto, short for South Western Townships, is a historic district in Johannesburg that was at the heart of South Africa’s historic struggle against apartheid. Central figures such as Nelson Mandela, whose house nearby has been turned into a museum and visitors center, and future Nobel Peace Prize winner Desmond Tutu lived here. The epicenter of the 1976 Soweto Uprising, which marked a major turning point in the fight against apartheid, Soweto now has a vibrant cultural scene with delicious street food and great music.
PILANESBERG NATURE RESERVE
Pilanesberg Nature Reserve is situated in the crater of an ancient volcano and is one of the best safari experiences in South Africa. Just a two-and-a-half-hour drive from Johannesburg, you can see majestic lions, elephants, rhinos, leopards, and buffaloes in their natural habitat in this incredible setting. The reserve’s 55,000 hectares are a mix of ancient volcanic hills, winding valleys, and vast savannas with incredible biodiversity, including Africa’s Big 5, hundreds of species of native birds, and rare antelopes. And it is certified malaria-free, making it a safe option for those wishing to experience Africa’s iconic natural wonders.
Visit the park on a weekday at sunrise for a peaceful experience and a chance to see wildlife, including leopards and lions, when they are most active. Avoid the crowds and head to the lesser-known Rathebe Road for rare cheetah sightings.
WALTER SISULU NATIONAL BOTANICAL GARDEN
Located a 30-minute drive from Johannesburg, the lush Walter Sisulu National Botanical Garden is the perfect place to escape the hustle and bustle of the city. This beautiful park, one of South Africa’s most impressive botanical reserves, spans 300 hectares and is home to over 600 plant species, the spectacular Witpoortjie Waterfall, and a resident pair of Verreaux’s eagles living on the rocks. Whether you are an avid birdwatcher or simply seeking tranquility in nature, this UNESCO-listed attraction is a delightful place to relax and recharge.
Visit this area in late spring to early summer, when many of the native wildflowers are in bloom and the eagles are at their most active.
Tourist places near Cape Town
CASTLE OF GOOD HOPE
The Castle of Good Hope is a fort in the South African city of Cape Town. It was built between 1664 and 1679 on behalf of the Dutch East India Company (VOC), making it, after Rustenburg, the oldest surviving European structure in South Africa.
Go to the rooftop terrace for an incredible view of Cape Town. In the summer, take the tunnel tours to see the underground moats from the 17th to 19th centuries.
Location and opening hours
Castle St, Foreshore, Cape Town, 8001. Open daily from 09:00 to 16:00; closed on December 25 and May 1.
SEAL ISLAND
As one of Cape Town’s top attractions, Robben Island draws crowds due to its status as a living museum. The site was in use from the late 17th century until 1991 and has housed a wide variety of functions, from a leprosy center and hospital to a high-security prison where Nelson Mandela was incarcerated. As you walk through this UNESCO World Heritage Site, you can see how people fought to free themselves from oppression.
The Robben Island Museum, which focuses on the struggle against apartheid and for freedom.
Visit prison cells and dormitories in Robben Island Prison.
Location and opening hours
Robben Island, Cape Town, 7400. Open daily. Ferries depart from the mainland at 09:00.
MUIZENBERG BEACH
Head to Muizenberg Beach along the False Bay coastline for a fun day on the water. It is one of Cape Town’s best family-friendly destinations and is particularly known for surfing and colorful Victorian-era changing huts. Don’t miss the Muizenberg Pavilion, where you can play minigolf and visit a small water park.
Best time to go
Swimming is best in the summer (December through February) thanks to the warm water of the Mozambique Current, but it can get crowded. November and March are also warm and there are fewer people then.
Location and opening hours
Beach Rd, Muizenberg, Cape Town, 7950. Open 24/7.
TABLE MOUNTAIN
Table Mountain, one of the city’s most iconic landmarks, is among the best places to visit in Cape Town. From its elevated position, the mountain offers panoramic views of Robben Island and landmarks such as Lion’s Head and Signal Hill. The hiking trails offer breathtaking natural beauty, featuring seasonal flowers, ravines, and rocky outcrops.
Insider tip
If you don’t feel like hiking, the Table Mountain Aerial Cableway takes you to the top station in just five minutes.
Location and opening hours
Table Mountain Nature Reserve, Cape Town. Open from sunrise to sunset.
