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callLast Thursday, May 4th our Experts Input „Future AFRICA – Expertise and Cooperation – Focus South Africa“ took place. During our moderated panel discussion, we gained exciting and entertaining insights from the areas of intercultural awareness, safety, funding, executive search as well as legal insights when it comes to employment and taxes.
Last Thursday, May 4th our Experts Input „Future AFRICA – Expertise and Cooperation – Focus South Africa“ took place. During our moderated panel discussion, we gained exciting and entertaining insights from the areas of intercultural awareness, safety, funding, executive search as well as legal insights when it comes to employment and taxes.
To receive that input we have invited Leonie Pentz, Owner and Managing Partner of ti communication’s cooperational partner AIMS South Africa, Volker Werth, Managing Director of ti communication’s cooperational partner Intergest South Africa, Nelli Soumaoro, chairman of Bord of Directors of Komm mit Holding, Thorsten Ronge, Managing Director of SMA Solar Technology Africa (Pty) Ltd. and Director of SMA Mittle East Limited as well as ti communication’s expert Dr. Kundri Böhmer-Bauer.
Country Specific Information and Safety
It is essential, in addition to intercultural awareness, to impact knowledge about the country or region. The point of safety and security is a particularly important one that must be taken into account. It is important to emphasis that there is no reason to panic! As in no area in the world there is 100 % safety. However, with the right tools, knowledge and preparations, the assessment of a situation can be made more realistically and one’s own actions can be adopted accordingly. We also learnt that the huge variety of cultures within South Africa (rainbow nation) itself makes it in general easier for South Africans to work with foreigners on the one hand while on the other hand increases the complexity for foreigners as they need be especially aware of the different cultural backgrounds involved.
Becoming Active in South Africa
During the event it got clear that starting a business in South Africa can be really lucrative on the one hand but requires guidance and strong partners, especially in the areas of HR, legal and tax advising as well as intercultural preparation and coaching on the other hand. Adapting to the local circumstances can act as a pool of knowledge and possibility of learning for foreign investors.
Green HR as Success Factor
Due to existing challenges in the South African educational system, there is a gap between the highly skilled colleagues for whom it’s easy to find a job and it’s important for the company to make them stay and the high rate of unemployment (32,7 % during 2022) especially among the younger generation (age 18 -25). In order to keep the highly skilled managers, a green and sustainable HR has to be implemented and flexibility and a good work live balance has to be guaranteed.
Differences in Labour Law and Taxing
While the administrative organization of general and staff taxes is very much online-based the Labour Law differs a lot especially from many European countries such as Germany, Austria or Spain as case law is applicable in many circumstances. This requires a local expert with a huge knowledge and experience right from the beginning and especially when it comes to defining employment contracts. While incorporating a company in South Africa can be conducted within 7 to 10 working days (if all documentation is completed) other tasks such as opening a bank account can result more time expensive.
Also for investments and fundings several aspects such as floating exchange rates and local expertise is required. Interesting fields for investment for European companies and investors can be found in the areas of farming and (green) energy.
Our experts will introduce you to the cultural peculiarities and pitfalls of intercultural communication in various formats (in German or English or other languages on request).
Further Consulting Options
For consultation and assistance establishing and developing business activities in South Africa please contact Intergest South Africa and Volker Werth.
Nelli Soumaoro from Komm mit Afrika Holding will be pleased discussing details on funding and investment for your projects on the African continent.
Of course you can always contact us at ti communication and we will be happy assisting you with the right point of contact.