perspectives on south africa’s reputation on the€¦ · perspectives on sa’s reputation on the...

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

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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

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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.


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


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


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


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.


SA Inc. Project: Nigeria – South Africa Bilateral Trade


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


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


SA Inc. Project: Ghana– South Africa Bilateral Trade


Ghana Imports from SA

R 3 723 629 774

SA Imports from Ghana

R 7 101 559 112



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


SA Inc. Project: Angola– South Africa Bilateral Trade


SA Exports to Angola

R 11 402 454 851

SA Imports from Angola

R 21 832 185 992



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’


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)


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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)


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


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

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EDB Overall Ranking-2015/6South Africa: 73New Zealand: 2



0

20

40

60

80

100

120

140

160

180


Starting a Business


Getting Electricity



Paying Taxes


Enforcing Contracts


New Zealand

South Africa

South Africa vs Denmark

28

EDB Overall Ranking-2015/6South Africa: 73Denmark: 3



0

20

40

60

80

100

120

140

160

180


Starting a Business


Getting Electricity



Paying Taxes


Enforcing Contracts


Denmark

South Africa

South Africa vs Korea

29

EDB Overall Ranking-2015/6South Africa: 73Korea: 4



0

20

40

60

80

100

120

140

160

180


Starting a Business


Getting Electricity



Paying Taxes


Enforcing Contracts


Korea, Rep.

South Africa

South Africa vs Hong Kong

30

EDB Overall Ranking-2015/6South Africa: 43Hong Kong: 5



0

20

40

60

80

100

120

140

160

180


Starting a Business


Getting Electricity



Paying Taxes


Enforcing Contracts


Hong Kong SAR, China

South Africa

WB Ease of Doing Business Index 2015: The Next 11

31



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

[email protected]

Dr Judy Smith-Höhn, Research Manager

[email protected]

Ms. Leigh-Gail Petersen, Researcher

[email protected]

Readers are welcome to use the data

contained in this report for their own

purposes provided they acknowledge the

source.

35

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