South Africa: a trade haven? National Minority Business Council develops market-entry program for minorities.

President Nelson Mandela's ticker-tape parades are over. Now, many African-American entrepreneurs are jetting off to Johannesburg to sign international trade deals, capitalizing on the new democracy.

According to John F. Robinson, South Africa "has been identified as one of the world's top ten emerging markets." Robinson is president and CEO of the National Minority Business Council in New York.

Building relationships, mending misunderstandings and sensitizing blacks, in both America and South Africa, to each other's mind-sets is a major NMBC mission. In fact, the NMBC has developed a strategic program for minority- and women-owned enterprises interested in establishing a beachhead in the South African market. The NMBC program is funded with a $50,000 Global Market Export Service contract by the New York State Department of Economic Development. Meanwhile, the NMBC is matching up South African companies with American partners, developing a co-operative in South Africa to facilitate trade opportunities in the NMBC's absence and working with local small business assistance centers.

MATCHMAKER, MATCHMAKER

"Americans are flocking to South Africa," commented Kathryn Leary, managing director of NMBC's International Trade Program, at a recent Made in USA Southern Africa Trade Expo. At the expo, she lobbied for NMBC member companies and conducted a study of the business potential for their products and services.

Robinson identified the following areas as potential profit makers: Construction, computer software/ hardware, business consulting, public relations and marketing.

According to the NMBC, the average South African company reports $150,000 to $200,000 in revenues. These South African firms, in turn, are seeking American partners with revenues of at least $250,000 and two to three staffers. To oblige South African comrades, the NMBC recently advanced its international trade efforts with a fact-finding mission to South Africa.

"Although there are many challenges, the opportunities are enormous." notes Leary. "Providing services and developing joint ventures in South Africa and with Fortune 500 companies in the states are all positive possibilities." She recently returned from a trip to Johannesburg and Soweto, undertaken to help identify key business development resources for NMBC members.

"South Africa, itself, is certainly receptive to these business initiatives. South Africa's President Nelson Mandela has created a Reconstruction and Development Plan, a policy framework for ushering the black population into the economic mainstream. The plan calls for various public and private initiatives in land reform, as well as training and capital formation designed to redress the economic scars left by decades of apartheid.

POLITICAL PRESSURES

Still, the road to setting up trade deals and business ventures in South Africa will not be easy. "South Africa's economic future could be in jeopardy," says Robinson. "Any sign of turmoil or unrest will stall [the nation's development] process. South Africa does not want sanctions to be imposed again. They don't want to be cut off from the rest of the world," he continues.

The council has also launched South Africa Watch, a quarterly newsletter providing minority businesses both in the United States and abroad with information for business opportunities in the new South Africa. For more information, contact the NMBC at 212-573-2385.