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The southernmost country on the continent of Africa, South Africa, has undergone significant changes in the world of business. Often considered a good gateway to the rest of Africa, especially other Sub-Saharan countries, it offers a unique prospect for international business partners. The combination of African growth potential and more Western-leaning business familiarity carries a lot of potential for those wishing to explore the lucrative options available to them here.
South Africa in a snapshot
South Africa is one of Africa's largest and most diversified economies, with a nominal GDP of over USD 410 billion in 2025. The city of Johannesburg is the primary financial centre of both the country and Africa as a whole.
Mining serves as the country's biggest industry, with diamonds, gold, and platinum forming some of the biggest subsectors. South Africa is also one of the world's largest producers of metals such as chromium, a key component in steel manufacturing. Beyond the mining industry, South Africa is also home to large manufacturing and agriculture sectors.
South Africa also has a growing market for outsourced talent, especially in tech and IT functions. Companies around the world are beginning to outsource key activities such as customer service and accounting to South African agencies and entrepreneurs. The talent and skills of workers, their global location allowing for easy access to other time zones, and their understanding of international business practices make it easy for them to join and thrive in global workforces.
A people-oriented nation
We've spoken about the Lewis model in previous instalments of our series here, and South Africa best fits into the multi-active category. Those coming in to find a new deal may be surprised to find the extent to which they are welcomed. South Africa as a nation places a great deal of value on the family unit at both nuclear and extended levels, and this mindset extends to other areas of society.
As a result, you can expect to see a great emphasis placed on developing the relationship between the South African party and your own. Expect conversations to flow easily and without strict adherence to any agenda. Multi-active nations can seem like they are juggling many thoughts at once, and may prefer to think on the big picture rather than focus on details. As with any culturally diverse nation, experiences will vary by region, sector, and organisation, but there will always be some common threads you can pull together to build a solid negotiation strategy.
5 tips for negotiating in South Africa
Headed into a negotiation session with South Africans? If so, here are some of our best tips to bear in mind to move towards success.
1. Build trust through information sharing
A good rapport with South Africans can be started long before you even get to the boardroom. Building trust with any client, new or old, is key to a constructive discussion. South Africans appreciate this being done through information sharing.
When all sides are willing to share their knowledge and stances over holding key pieces of information back, it allows everyone to work together towards those key win-win solutions.
2. Avoid the hard sell
South Africans won't appreciate any attempts to push for a hard sell. While aggressive strategies might carry more reward for their risk in places like the USA, this is not a strategy that could go over well in South Africa. It may be better to select a negotiation style that is more collaborative in nature.
3. Respect the hierarchies
Many South African companies are still very traditional in structure and operations. This frequently means that there is a strict hierarchy in place. Rather than a flat hierarchy where everyone can speak up and contribute their thoughts, there might only be one person on the South African side who can deliver a final verdict.
This could mean, ultimately, the person who needs to make the final decision in your negotiation is actually not going to be in the room with you during bargaining. A good negotiator needs to be patient and respect the hierarchies present, adapting their approach accordingly. Decision rights may sit outside the negotiation room.
4. Don't rush the process
In South African negotiations, progress is often relationship-led rather than deadline-driven. You cannot head into any sort of discussion with South Africans and expect to be able to put a strict deadline in place.
Your first meeting may not even discuss the issue at hand; it may purely be spent getting to know one another as collaborators. There needs to be a nurturing of the relationship before you can get fully down to business. Taking time to establish a relationship can smooth the road ahead; putting pressure to make a decision and speed things up can ruin the progress you have made. Early success can be measured in understanding and trust before it is cemented in a negotiated settlement.
5. Be prepared to be social
As a multi-active culture, South Africans want to build a strong relationship with their negotiating counterparts. This can take many forms, and they will want you to reciprocate goodwill and attempts to strengthen your connection.
Expect an invitation to lunch or dinner, but don't expect to necessarily discuss any deals while there. This is a chance to socialise and get to know one another better. With a stronger relationship, you will hopefully be able to reach a good agreement with more ease. When it comes to gift-giving, however, you need to exercise a little caution. The South African government has some strict anti-corruption rules related to gifting that you will need to obey.
Prepare for South African negotiations with Scotwork
South Africa is a vibrant country with a wealth of opportunities for those wishing to explore them. With a growing economy and opportunities to extend into other parts of Africa, many companies may wish to explore the links open to them here.
Whether you are an expert at the negotiation process or you feel like there are some areas where you could use some improvement, Scotwork can help. Our expert negotiators can help you discover and address your pain points while building on your foundation of strengths. Get in touch today and find out how we can help you.
