Mnc's and South Africa

In what way could the huge cultural diversity in South Africa pose challenges for MNCs seeking to set up a business there?

Cultural diversity in South Africa poses challenges for MNCs setting up businesses because it takes diversity to a new level. South Africa consists of about 50 million people but only 80% of which are African. About 9% are white, 9% have a mixed background, and the other 2% are Indian or Asian. South Africa’s laws to promote free choice of religion also make the culture more diverse. 80% are Christian, and the other 20% consists of Islam, Muslim, Hindu, and Jewish.

Being so diverse can present challenges in communication. Some cultures put a huge emphasis on time and others do not. This can present challenges for work times, scheduling meetings or any time sensitive related issues. Newer businesses really need to take the time to understand who they are communicating to as well as understanding the cultural obstacles that can get in the way. Communication style is also important, some cultures will be extremely offended if someone raises their voice or shows inpatients in decision making. A lot of little things that we may never think of as disrespectful in our own culture can be in South Africa. The biggest challenge is in having to understand so many different cultures.

What do you think are the most pressing social issues in South Africa and how is the country doing in resolving them?

17% of South Africans are infected with HIV, 43% live on less than $2 US dollars per day and their unemployment rate is now over 25%. In my opinion these are their most pressing social issues that need to be at the top of their priority list.

As of right now, South Africa is offering incentives for companies to hire youthful employees. Currently, South Africa’s youth unemployment rate is over 50%. By hiring younger employees, it should help lower unemployment rates in the future as well as clean up a lot of the violence that is...