South Africa's "Black" Market: How to Do Business with Africans

To do business in Africa, you must learn how Africans do business! Nowhere is this more important than in South Africa. Western investors, project managers, and business pioneers who wish to tap this dynamic frontier market must master African marketing methods. Distinguished African mercantile clans have honed and polished their methods and have formed notable, sophisticated, and successful trading companies across the continent for the past 2,000 years. Surely they have much to teach us. We must learn more about Africans in order to work more closely with them. We do not want Africans to perceive us as patronizing, arrogant, unwilling to learn African languages, contemptuous of local tradition, and hesitant to socialize with Africans. Author Jeffrey A. Fadiman considers Africa as the West's commercial blind spot, believing we have ignored Africa since the 1960s and thus we have never learned how Africans do business. His book describes how we can use African methods to market African-style. He gives case studies of twenty-one African entrepreneurs. Fadiman knows Africa. He is a full professor of global marketing and an African area specialist with 32 years of experience in western, eastern, and southern Africa. He writes for the commercial pioneer who wants to venture beyond South Africa's small white market into the huge black market of more than 40 million with another 400 million beyond its borders. South Africa is the launch pad for the continent. The book begins where you would-on the day you decide to launch a South African venture. Fadiman explains which tribes live where, what languages they speak, and where the markets are. Next he leads you through the history of South African racism, tribalism, and apartheid to illustrate precisely how each of these problems can still throw up major obstacles to Westerners who come for business. After this rather sober beginning, the author takes you on a fascinating journey into the very heart of African methods, teaching you how to market yourself ("creating relationships") before even thinking of marketing your product. To do this well, you must learn how Africans greet, give gifts, do favors, show respect, and socialize as well as how their "big men" conduct negotiations, implement agreements, deal with labor, and so on. Then you must consider how to reach new market segments that have no U.S. parallels: dynamic African townships, extensive rural communities, and the large number of foreign Africans now pouring into South Africa. Fadiman's tour then takes you into the "shadow" side of African marketing. You learn how to market your product through street hawkers and smugglers and even how to use the "tsotsi" (gangster) bands to implement your project. Fadiman is shockingly honest in analyzing South African crime. He tells it like it is and then suggests pragmatic and specific and effective methods to cope with it. In conclusion, Fadiman describes the sheer joy of working with a people whose optim

This book is more than just another lay-of-the-land, how-to for international business. Offering usable insights into the Sub-Saharan African culture, this text proved invaluable in establishing lasting African relationships... both personal and professional!

This book is scary! It tells you just what to do in order to penetrate South Africa's largest market of 40 million people, huge but chaotic. That's daunting to the commercially timid, but the text is geared to business pioneers who by nature defy discouragement. Fadiman tells us what's actually happening in the "Black" market, even the politically incorrect things that are often left out of books about controversial places. Then, having described how the local business games are actually played, he graphically delineates the rules so that an outsider can understand and participate. Essentially, he has created the ultimate business map.His first chapter describes the national social geography, including both the visible and invisible sections of every major South African city. We all know of the visible, city names such as Johannesburg and Durban. The invisible sections are the African townships that surround each city -- which until recently were on no official maps. The townships contain millions of potential clients who were long dismissed as oppressed.I skipped part of the long history lesson in Chapter 2, but as I read further I was glad it was there, up front. Here are some unforgettable concepts to consider. For instance, Fadiman argues that South Africa's whites did NOT create apartheid just to separate the races, but to reduce the millions of blacks to PULP (Permanent Underpaid Labor Pool), so as to maximize their private profit. Nowadays, these same millions can afford to buy the goods and services once reserved for whites. Fadiman's goal is to teach us how to sell to them.One huge market that Fadiman explores is the African black market. It is untaxed, vast and completely unregulated. That suggests it should be chaotic as well. But he shows it to be highly structured, essentially efficient, and quite penetrable by Western marketers with open minds and imaginative methods. His examples of methods draw on either his own local experiences or on techniques that have worked in other emerging markets. Thus he describes a tactic used by James Thompson, the legendary silk king of Thailand, arguing that what works for Thai silk could do wonders for African wool.The book pulls no punches in describing the risks of entry into the market. It's the old Wild West, but with carjackers instead of cowboys. Yet for every risk Fadiman offers practical personal action suggestions. I now know, for instance, that I have to see the bottom of the tires on the vehicle in front of me to have enough space to spin away from potential carjackers. Unusual stuff from a biz-school academic.One structural criticism: The very last section should stand by itself. Although written in business prose, it's a short elegant poem, a tribute to the beauty and wonder of this unusual country by an author who does not ignore its problems. Readers of this book however will be mostly concerned with how to make money in a country with 60 million inhabitants wh