Starting a business in South Africa
By Quinton Mtyala

Coming from overseas and starting up investments or business in Cape Town entails starting in another country, or even another continent.
A first conversation between Quinton Mtyala and aCrossover South Africa

aCrossover South Africa is a small network company situated in Cape Town. Guus Bierens, the managing director, introduces and assists overseas investors, companies and entrepreneurs in sourcing opportunities and setting up in South Africa

South Africa
Ten years into democracy, the country is experiencing economic growth in the context of a turbulent world economy.
Exports have increased substantially and investment in the specific sectors like tourism and the automotive industries have taken off.

In which way do you analyse South Africa's opportunities now in comparison to some years ago?

Guus Bierens: "I have seen a rather significant change take place over the last five years". "From the continual 'brain drain' and a -perhaps insecure- pessimism it has changed to being more proud of what has actually successfully taken place from a business perspective."

How do you look at Cape Town in this, is it a tourist town or a business town?

Cape Town has many examples of world class companies
"The agricultural sector, manufacturing, financial and trade services, the IT and telecommunications industry, tourism infrastructure; all feature examples of world class companies that are growing.

"Explaining to an American that his Levi's are manufactured in Cape Town and the nylon used in his Nikes comes from Cape Town instantly changes their perception of a city considered of just being a tourism hub.

"Cape Town and South Africa battle in with getting these stories out to entrepreneurs". Business people arriving in Cape Town love it, yet have no idea of the many developments that were not here four years ago.

"Now sometimes we are approached for a project and before we have actually met the actual investor or entrepreneur the project already starts. In a developed market visiting the brief and approach is defined together with the investor. In this way they can actually start up without spending several months in South Africa, they simply do not have because of their companies in their home country.
We start the sourcing and putting the project in place for their next short visit 6 weeks later.

Are you focusing on entrepreneurs or large corporates?

"On corporate level the investment potential is clear, we focus on under-explored SME sector", says Bierens.

"This particularly is where real growth in South Africa can come from. Many companies and investors focus on the large corporates, where as we believe that the entrepreneurial SME co-operations, exports and investments are where South Africa's opportunities need to be scouted and developed.
Yet for overseas companies to discover these companies or investments, in depth work is necessary to source those opportunities and the right South African partners".
This is where we source opportunities for overseas companies and investors. Many times, smaller overseas companies want to start up, yet lack the time, 100% knowledge and the entrepreneurial start up partner to source opportunities and get the different aspects in place for them.

"Because we are not South African, we can be very straightforward in dealing with their perceptions and we are perhaps 'less nice' to them. That is an approach that entrepreneurs respect."

How did aCrossover South Africa start up?

"Opportunity Scouting and Connecting SME Entrepreneurs and Investors"
Bierens says: "I've gained experience in South Africa and in Europe setting up business concepts and business projects for both listed companies and small and medium enterprises and entrepreneurs.
Having seen the developments in South Africa and acknowledging the missing link in entrepreneurial support I realised this is a mission with a very satisfactory goal: not promoting but communicating and connecting South Africa to overseas partners and sourcing opportunities.

How do SME companies and investors find you?

"Coming from overseas, understanding South Africa and being both hands -on"

SME entrepreneurs, investors, and even NGO's or non profit organisations actually find me now by word of mouth. The world is small and people in the SME environment often come across your name twice, or three times; that is the first validation. Coming from overseas and being both hands-on and entrepreneurial creates a common understanding for co-operation.

The Department of Trade and Industry or Export promotion agencies know how to find us and refer to us occasionally.
I have a feeling they realize very well the importance of the entrepreneurial partner in connecting overseas SME companies and investors. Avoiding the first ten mistakes is half the success in a new continent.

Many people feel a connection to South Africa, from conquering its difficult past or simply because of its people, climate or wildlife.

Internet, cell phones, better flight connections; The world is becoming smaller, how do you see developments in Cape Town in this as it is renown to be one of the most beautiful cities in the world?

"In the last five years I have compared Cape Town to Amsterdam many times. In an interview with
Summit TV last February I mentioned Cape Town is a gateway to South and Southern Africa in a same way Amsterdam is a gate way to The Netherlands and Europe".

"An international and African metropolitan with a multicultural character"
"Overseas Companies set up their headquarters in those gate way cities. At the same time important is that Capetonians love their city, growing into an international and African metropolitan with a multicultural character".

For more information: www.acrossover.com