E mail security software provider Mimecast is one of a growing number of UK companies seizing the opportunity to trade in South Africa.
It opened an office in Johannesburg in 2003, and has since won contracts from the likes of TransNet Group, South Africa’s largest transport and logistics company and gold resources business South Deep Mine.
“South Africa has a strong service culture and a can-do attitude, and there is good government support for entrepreneurs,” says Mimecast founder Peter Bauer. “There is a desire to achieve in the international market.”
According to Peter Katzenellenbogen, partner at the Johannesburg offi ce of accountancy and business advisers PKF, South Africa is now regarded as one of the world’s leading emerging economies.
“South Africa has world class banking facilities and is served by a developed national network of highways as well as a railway system. There are good air connections to all major business centres,” he says.
He adds that the country has enjoyed strong domestic growth in recent years. “The Johannesburg Stock Exchange has been one of the top performing exchanges in the world over the last two years.” The currency, the rand, has experienced wide fl uctuations in recent years, but is now relatively strong compared to other major ones.
Hot sectors
Nick Hood, senior partner at UK corporate recovery fi rm Begbies Traynor says the retail and business services industries in particular are experiencing fast growth. “South Africa is marketing itself as a business and financial services hub for the rest of Africa. Investment is also being made in call centres and tourism. However, industries such as manufacturing and textiles are tougher propositions because of rising labour costs,” he says.
UK Trade & Investment, the government body that helps businesses expand abroad, says the following sectors are particularly attractive: »
Automotive: South Africa’s Motor Industries Development Plan has opened up the market to UK automotive component manufacturers »
Sport and leisure: South Africa is hosting the 2010 FIFA World Cup, offering opportunities for equipment manufacturing and sports complex construction »
Education and training: There is potential for businesses specialising in vocational skills development »
Healthcare: The government is currently looking at international healthcare models with the aim of developing public-private partnerships » Power: There are opportunities for companies that specialise in coal, nuclear and carbon-free /reduction technologies »
Telecoms: South Africa has the largest telecommunications network in Africa and mobile phone take-up is predicted to triple in the next six years »
Transport: South Africa’s airport, railway and port infrastructure is undergoing renewal
One company benefiting from the potential that the transport sector has to offer is UK bus ramp manufacturer Compak Ramps, founded in 1999. Last year it secured an order worth £25,000 from a South African bus and coach manufacturer.
“If you have the right product, then the opportunities in South Africa are enormous,” says Tony Rodwell, sales and marketing director for Compak Ramps. “It is a developing country with considerable growth potential and a rapidly improving public transport infrastructure.”