South Africa: Business Practices

Business culture

The Fundamental Principles of Business Culture

South African business culture is marked by entrepreneurship, personal achievement and cultural sensitivity. Since the society is multi-ethnic, values and behaviours of individuals differ strongly depending on the micro-cultural groups to which they belong.  But patience, tolerance and creativity are prevailing values for many South Africans. The business culture of the population is similar to Western culture: efficiency and competitiveness oriented. This cultural diversity can make effective team building complex.

The type of hierarchy may be different depending on the type of company you are dealing with: it tends to be vertical in traditional businesses and multinationals while power is more shared in start-up companies. More and more middle managers are looking proactively to become involved in decision-making. In all cases, respect for elders and rank is essential. When decisions involve consultation with subordinates, processes can be slower and more protracted.

Regardless of cultural background, a good personal relationship often forms the basis of successful business. This relationship is developed with face-to-face meetings, rather than by email or phone.  Initial appointments should be about getting to know your partners on a personal level.

First Contact

South Africans are often reluctant to deal with people they do not know. Building a business relationship often requires an intermediary to send a formal letter of introduction in order to win the trust of potential partners. It is often necessary to make contact one or two months in advance to obtain an appointment, and to confirm it by calling the day before. Summer holidays are to be avoided (mid-December to mid-January).  It may be difficult to arrange meetings with senior level managers at first; you may have to meet with lower-level managers to begin with. To communicate South Africans rely on the telephone and email. The use of fax is also still common. 

Time Management

In general, South Africans value punctuality, while black South Africans have a more flexible attitude towards time. You should always arrive in advance as many companies and public buildings require visitors to pass through security checks. Formal meetings and appointments usually begin and end on time. The South African approach to deadlines is generally flexible, so it is recommended to include strict deadlines in contracts.

Greetings and Titles

You should give a firm hand shake (often quite lengthy), with direct eye-contact with your South African colleagues. Some women do not shake hands and just nod, thus wait for the woman to extend her hand first. South Africans can be quite tactile and back slapping and hugs are common. Greetings are quite informal and include time for social discussions. In general, when meeting someone for the first time, South Africans use “Mr” or “Mrs”, except in the academic sector where professional titles are important. When addressing a woman, it is advised to avoid using the term “Miss”. First names are often used but it is advised to wait until you are invited to do so.

Gift Policy

The exchange of gifts is not a business habit but it is not unheard of. Gifts are not considered as bribery; thus, you should always accept them. They are usually opened when received. People from the Xhosa tribe tend to give and receive gifts with both hands.

Dress Code

Even if business attire is becoming more casual in many companies, you are expected to be conservative: dark coloured business suits for men and business suits or dresses for women. When business meetings are held on a social basis, it is possible to dress more casually, while remaining quite formal.

Business Cards

In South Africa, exchanging business cards is a usual practice, takes place during introductions and must be treated with respect. It is polite to compliment your South African contact’s business card. Personal e-mail address, a cell phone and a fax number must be indicated, and the card should be in English.

Meetings Management

The initial meeting is often used to establish a personal connection and a relationship of trust. In-person meetings are preferred, rather than telephone or Skype appointments. During discussions, it is common to have small talk before proceeding to business matters.

Before meetings, you should research the current differences across populations in South Africa to then be able to show you have adapted your behaviour, ideas and policies to respect the local conditions. Fancy slide presentations are not recommended, but it is advised to include good and self-explanatory visuals during your talk. Generally, South Africans look for a win-win situation; thus confrontations, pushy behaviour and aggressive negotiation and selling techniques should be avoided. Business proposals and requests should be realistic in order to avoid excessive haggling.

Communication will differ depending on who you are dealing with. Most of the time, English-speaking South Africans look for maintaining harmonious business relationships, will be diplomatic and will make their point in an indirect way. Nevertheless, Afrikaners are more direct communicators. Silence is often a sign that the situation has become uncomfortable. Humour is generally used to ease tensions. During discussions, it is considered impolite to interrupt someone who speaks, as well as showing impatience towards the decision-making process. After a meeting, it is advised to send a letter summarising what has been decided and what the next steps will be.

Business lunches and dinners are very common in South Africa, as well as business breakfasts. Business meals do not take place to conduct negotiations but rather to talk business in a more casual setting.

Sources for Further Information

Expatica
Commisceo Global
Cultural Atlas
World Business Culture

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