Coming from overseas: 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. Founding entrepreneurs Marc Zandhuis and Guus Bierens introduce and assist overseas investors, companies and entrepreneurs in sourcing opportunities and setting up in South Africa

South Africa
Almost ten years after the first democratic elections were held in South Africa, the country is experiencing economic growth in rough global economic weather.
South African inflation turned out less then calculated in the last years. Export has increased substantially and investment in the country has taken a flight in the last years. Tourism in South Africa has increased far above the worldwide average growth and the country's role as a stable gate way into Southern Africa is becoming more and more clear.

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

Guus Bierens: co-founder of aCrossover South Africa: "I have seen a rather significant change take place in over the last five years". "From 'brain drain' and a -perhaps insecure- negativism it has changed to being more proud of what has actually successfully taken place business wise and economy wise, apart from the many social developments that have actually taken place". It is a good start for only ten years of first democracy.

South Africa cán play its part and actually ís playing its part in the global and African economy.
It is finding its niche and setting priorities in the role it can play and needs to play.

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

Cape Town has many company examples of world class standard
Marc Zandhuis, the other co-founder of aCrossover: "The agricultural sector, manufacturing, financial and trade services, the IT and telecommunications industry, tourism infrastructure; all feature company examples of world class standard and are growing.

"Explaining to an American his Levi's we're made in Cape Town changes perceptions quickly"
"Explaining an American that his Levi's are manufactured in Cape Town and the nylon of his nikes comes from Cape Town instantly changes their perception of Cape Town being a tourism getaway into it being a business environment". Cape Town and South Africa wrestle 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. Explaining the setting makes it clear, yet it needs to be done.

Now sometimes we are approached for a project and before we have actually met the actual investor or entrepreneur the project already starts. Or in a first developed market visit the brief and approach is defined together with the investor. In this way they can actually start up with out 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" (Small and Medium Enterprise, Q.M.). 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 straight forward"
Importantly, because we are not South African originally, we can be very straight forward in dealing with their perceptions and we are perhaps 'less nice' to them. That is an approach that entrepreneurs respect.
In a short period of time in a 'no nonsense' approach integrated into South African business life.
By an 'overseas' South African that we are, being Dutch originally.

How did aCrossover South Africa start up?

"Opportunity Scouting and Connecting SME Entrepreneurs and Investors"
Bierens: "We have 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 we realised this is a mission with a very satisfactory common goal: not promoting but communicating and connecting South Africa to overseas partners and sourcing opportunities.

We accompanied a part of an Dutch inward investment mission of DTI last year, a perfect combination, being from a Dutch/European and entrepreneurial back ground, SME companies and small and medium investors connect on both ends. In the last year we connected many South African companies in our projects.

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 of non profit organisations actually find us now by word of mouth. The world is small and people in the SME environment often soon 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. Also 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 wild life.
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?

"Another overseas Perception is that it is all about Jo'burg"
Marc Zandhuis "Another overseas perception is that it is all about Jo'burg. Cape Town has 238.000 academics and Johannesburg 245.000. Those figures open eyes".

"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 gate way 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