Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

SA lures foreign execs

Aug 29 2006 16:32

Related Articles

SA details skills shortages

Bosses earn 53X more in SA

New retail head for Woolies

Corporate SA still in white hands

More executives leave SA

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

Tupperware agents incensed by fakes

May 27 2012 11:49

The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.

 
Share Share line Print
Johannesburg - South African companies are increasingly recruiting foreigners for top jobs as they expand abroad and seek to plug a skills gap at home, but pressure on them to meet quotas on black staff is likely to curb this trend.

Food and clothing retailer Woolworths this week said it had appointed Andrew Jennings, a senior executive at luxury US retailer Saks, as its head of retail.

Jennings follows American Steve Ross, who has turned around fashion retailer Edgars Consolidated Stores (Edcon) since taking the helm in 1998, and Deutsche Telekom's former US head, Jeffrey Hedberg, who was poached by South African mobile phone firm Cell C to become chief executive in May.

Africa's biggest cell phone company, MTN, appointed board members from Saudi Arabia, Germany and Nigeria to provide fresh experience after it agreed to buy Dubai-based Investcom - a deal that expands its presence in Africa and the Middle East.

"As South African companies internationalise, they are increasingly recruiting foreign talent," said independent analyst Reg Rumney.

"Under apartheid, coming to South Africa was obviously not a career-enhancing move ... but now we are no longer a pariah state, we have joined the globalised world of talent shopping."

South Africa on the radar

Encouraged by greater stability in Africa, South African firms are muscling north into the poorest continent and attracting increased interest from foreign investors looking for exposure to some of the world's least tapped markets.

A more stable rand, steady economic growth fuelled by low interest rates and a burgeoning black middle class have also helped attract investors.

Companies sometimes face pressure from a growing foreign shareholder base to 'globalise' management. Some such as MTN and the fast-expanding retailers also need international experience as they take their first tentative steps abroad.

A shortage of skills at home due to a brain drain among white executives after the end of apartheid and to skewed education policies under white rule has intensified the trend.

Meanwhile, South Africa's relatively smooth transition to multi-racial democracy, its economic policies and its position as a springboard to the rest of Africa have made it attractive for high-flying executives seeking a new experience.

"The consciousness of South Africa as a successful emerging market is growing, which is putting it on the radar of a lot of high-level executives," said Michael Spicer, chief executive of Business Leadership South Africa, which represents the heads of the country's top blue-chip companies.

BEE likely to act as a constraint

Experts also warn, however, that South Africa will not be able to import CEOs with quite the same vigour as some other countries due to the government's black empowerment drive, which is aimed at shifting economic power to the black majority.

Companies meet quotas on black staff and management, and those with too many "pale males" at senior executive and board level face pressure from the government and may lose out on public sector contracts.

"Companies importing too much talent are going to run into political problems," said Rumney, who conceded it might have been politically easier for state-owned companies such as South African Airways to bring in foreign white executives instead of sticking with white South African managers after apartheid.

"As long as the JSE (stock exchange) is full of white faces at CEO level, then there is going to be government pressure to train their own black executives not to look abroad."

 
 
Comment on this story
6 comments
Comments have been closed for this article.
It pays to know the cost and what you’re getting in return
May 28 2012 09:33

Investors may not have a clue what they’re paying their money managers or they type of service they’re getting, or, whether they can actually negotiate lower fees. (Reuters)

Perfin

I arranged two workshops in Cape Town at the Cape Chamber of Commerce offices as well as two computer based workshops, one on Google Adwords and another on Joomla Administrator at the training centre in Somerset West. Emarketing Workshops - http://emarketingworkshops.co.za/next-workshops 1. Interne... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...