INTRODUCTION

South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa President : Jacob Zuma (ANC)

South Africa is politically stable for its region it is one of six African countries that has never experienced a sudden disposition of government

It is also one of the most advanced and productive economies in Africa.

South Africas neighbors, Botswana and Namibia, are relatively prosperous and politically stable.

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Abundance of natural resources; well-developed financial, legal, communications, energy, and transport sectors; and the 26th largest GDP in the world. South Africa is ranked as an upper-middle income economy by the World Bank

South Africa GDP per capita PPP $11,302

By purchasing power parity, South Africa has the 5th highest per capita income in Africa

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South Africa is currently considered one of the global centers of economic growth along with economies of countries like Brazil, India, Russia, and China. Population - 2011 census 51,770,560

0-14 years: 28.5% (male 6,998,726/female 6,959,542) 15-64 years: 65.8% (male 16,287,314/female 15,972,046) 65 years and over: 5.7% (male 1,125,709/female 1,660,694) (2011 est.)

CURRENCY
1 ZAR(South African Rand)= 5.98348 INR (Indian Rupee)

MOBILE HANDSET MARKET

Mobile phone use has gone from 17 percent of adults in 2000 to 76 percent in 2010. Resembles the Indian mobile market in many ways-cellphones account for more than 90% of all telephone lines and the mobile penetration is at about 50%, with customer growth at around 15% per annum.

MOBILE HANDSET MARKET OF SA

Nokia and Samsung continued to dominate mobile phones in 2011. Nokia is an established brand within the mobile market and represents trustworthiness and quality

MOBILE HANDSET MARKET OF SA

Samsung considered trustworthy, and the company has managed to establish itself as the ultimate in style and design. Samsung has a target to dominate the entire South African consumer electronics industry, and based on its trendy designs and innovative products, it has a competitive edge which is difficult to beat. Hence, Indian companies are gearing up to spend sizeable amounts in promoting their brands Micromax has come up with new multifunctional, userfriendly cheep handsets.

TRADE RELATIONS BETWEEN SA & INDIA

The bilateral relations between the Republic of India and the Republic of South Africa have grown strong since the end of apartheid in South Africa in 1994 There is substantial potential for trade growth between the two countries.
2006-07 2007-08 2,660.7 3,605.3 6,266.0 2008-09 1,980.3 5,513.6 7,493.9 2009-10 2058.5 5674.5 7733.0 2010-11 3985.02 7140.55 11125 .57 2011-12 (April-Dec) 3478.79 7616.04 11094.83

Indias 2241.6 Exports Indias 2470.1 Imports Total Trade 4,711.7

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Able to build quite a diversified economic and political framework, with bilateral trade between our countries growing from US$4-billion to $11.1-billion over the 2005 to 2011 period Exports from India to South Africa include vehicles and components thereof, transport equipment, drugs and pharmaceuticals, engineering goods, dyes and intermediates, chemicals, textiles, rice, and gems and jewellery, etc. Import from South Africa to India include gold, steam coal, copper ores & concentrates, phosphoric acid, manganese ore, aluminium ingots & other minerals.

LEGAL AND BUSINESS ENVIRONMENT

South Africa has a world-class, progressive legal framework Legislation pertaining to commerce, labour and maritime issues is particularly well developed, while laws relating to competition policy, copyright, patents, trademarks and disputes conform to international norms and conventions South Africa has world-class infrastructure including a modern transport network, relatively low-cost and widely available energy, and sophisticated telecommunications facilities.

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South Africa's exchange rate makes it one of the least expensive countries for foreigners to live and do business in with a 1st - world infrastructure and high living standards ensuring good value for money
The South African government has achieved significant successes in ensuring macro-economic stability, via the implementation of macro-economic policies directed at promoting domestic competitiveness, growth and employment.

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Foreign companies are obligated to allow certain rights to South African employees, including the three key statutes: the Labour Relations Act (LRA), the Basic Conditions of Employment Act (BCEA) and the Employment Equity Act (EEA).
A proposed headquarter company regime will allow foreign companies to set up shop in South Africa without significant tax exposure, encouraging long-term investments.

WHY SOUTH AFRICA

No restriction on foreign ownership Availability of local technologies, labor and land Mobile Phone Boxed is duty free and has a VAT rate of 14% As per the Consolidated List of Prohibited and Restricted Imports Demographics (50% population under age of 25) The reason why South Africa is particularly attractive is because it is the gateway to Africa, and this market is estimated to have 150 million consumers.

Located at the southernmost tip of the African continent, SA is ideally positioned for access to the 14 countries

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Ranked 39th out of 178 countries in the World Bank and International Finance Corporation's Doing Business 2012 report, in terms of time, cost and hassle for businesses to comply with legal and administrative requirements

South Africa offers foreign suppliers a variety of methods to distribute and sell their products, including using an agent or distributor, selling through established wholesalers or dealers, selling directly to department stores or other retailers, or establishing a branch or subsidiary with its own sales force
1st world economic infrastructure with a vibrant emerging market economy

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Spending on cell phones accounts for eight per cent of income at a national level, it accounts for 18 percent of income for the poorest. South Africa was ready to provide whatever support was needed for making it easier for Indian companies to do business in the country

The potential of the South African economy is evident in its diversity of sectors and industries. It offers world class clusters in environmental technologies, ICT, transport equipment, creative industries and financial services