GOVERNMENT DIRECTORY

The Global Business Report says Africa is quickly becoming a significant chemical consumer and that if South Africa increases trade with its neighbors, the industry could be ignited. Over the next two decades, Africa should join the developed world. And it will have done it the same way as the rest of the world – by encouraging industrialisation, respecting property rights and allowing free markets to gradually lift countries out of poverty. Research shows that the South African information and communication technologies (ICT) sector, with its network that consists of 99.9% digital and includes the latest in wireless and satellite communication, is the largest and most advanced in Africa, and is shaped by technology leadership, particularly in the field of mobile software and electronic banking services. This in its entirety makes South African companies global leaders in pre-payment, revenue management and fraud prevention systems, and in the manufacture of set-top boxes, all of which are exported successfully to the rest of the world. Ultimately, the above stands as a mere highlight in an overview of the excellent growth and achievement taking place in terms of the leaps and bounds of the South African economy. The power of SA’s new middle class South Africa’s economy has been taken to new heights as the emergence of the new middle class seizes to take over at an extremely rapid rate. Since the rebirth of the country in 1994, the number of black middle class individuals has increased at a far faster rate than ever before – faster than most analysts anticipated. Marking the turn of a poignant and successful effect on South Africa’s economy as the nation’s black middle class is more influential and powerful than ever before. The Unilever Institute went on to dub South Africa’s new middle class as the “4 Million and Rising” in one of their recent studies, furthermore noting that the annual spend of the country's black middle class began pulling ahead of their white middle class counterparts in 2008, and has since skyrocketed to over R400-billion per annum. They have superseded to becoming the heartbeat of the economy. And now it is vital for business and industry to better grasp this market to successfully facilitate the provision of goods and services to meet its needs. The black middle class helps to create a vibrant and stable society by which in turn, heightens South Africa’s skills set, increase employment and widening the tax net. Over its maturity, this market has grown to be much more complex than marketers and advertisers anticipated. Marketers have not yet adapted quick enough to meet the needs of this rapidly transforming market segment. Connectivity can be said to be one of the most pivotal changes in this market over the past decade. Research shows that an estimated 95% of South Africa's black middle class now own mobile phones, compared to 64% in 2004. Correspondingly, the advent of smartphones and increased internet access has seen internet usage quadrupling over this period. Delving into South Africa’s automotive industry, it can be said it is by far one of the nation’s most significant sectors in terms of the many huge multinational corporations and brands outsourcing their components, parts and actual assembling of such from right within South Africa’s borders for both the local and global markets. South Africa has now become the go-to source in terms of the international automotive industry due to its perfect positioning for investment opportuni- ties, and accounts for about 12% of the nation’s manufacturing exports, making it a very vital part of the economic engine. International vehicle manufacturers such as BMW, Ford, Volkswagen, Daimler-Chrysler and Toyota have production plants in the country, while component manufacturers (Arvin Exhaust, Bloxwitch, Corning, Senior Flexonics) have established production bases here. Surveying the chemical industry, it can be said that it is concentrated and developed, with South Africa at the forefront as the world leader in coal-based synthesis and gas-to- liquids technologies. The industry is the largest of its kind in Africa. It is highly complex and widely diversified, with end products often being composed of a number of chemicals that have been combined in some way. With companies like Sasol, AECI and Dow Sentrachem dominating the markets, it can be said this sector’s recent diversifica- tion and expanded interests in tertiary products has led to the growth of its export potential. According to statistics, in 2013, the sector was South Africa’s fourth-largest employer with 200 000 jobs and contributed about 5% to the country’s GDP. Continued.... PAGE 310 ULTIMATE COMPANIES IN SOUTH AFRICA TM