Expanding into Africa: Funding a South African Brewing Company

This report analyzes funding strategies for a South African brewing company's expansion into Kenya, Tanzania, Uganda, Zambia, and Seychelles, considering both large-based investments in the current PTY in South Africa and individual investments into each project. It explores potential US-based companies and financial groups for investment, including venture capital, commercial lenders, and financial groups, recommending commercial lenders like CIT Small Business Lending. The report also discusses life in South Africa, initial impressions, differences from expectations, and corrections of prior misconceptions, highlighting the diverse culture, business practices, and suggestions for American companies intending to do business in South Africa, emphasizing patience, people skills, and respect for hierarchy. This document is available on Desklib, a platform offering a wide range of study tools and resources for students.

INTERNATIONAL BUSINESS
International Business 0

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Table of Contents
QUESTION 1:.................................................................................................................................3
Largely based investment in our current PTY in South Africa...................................................3
Companies or finance groups can be approached in the US to invest and structure...................3
Venture Capital........................................................................................................................4
Commercial Lenders................................................................................................................4
Financial Group.......................................................................................................................4
Structure.......................................................................................................................................5
Recommendation.........................................................................................................................5
Question 2:.......................................................................................................................................6
Life in South Africa and its people..............................................................................................6
Initial Impressions.......................................................................................................................6
Things different from what you had expected.............................................................................7
Some things you thought you knew about South Africa and its people but realized your
information was incorrect............................................................................................................7
Question 3:.......................................................................................................................................8
South African Business Practices................................................................................................8
Marketing.................................................................................................................................8
Management............................................................................................................................8
Operations................................................................................................................................8

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Strategy....................................................................................................................................9
Different from U.S. business practices........................................................................................9
Suggestions to an American company intending to do business in South Africa.......................9

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QUESTION 1:
Largely based investment in our current PTY in South Africa
Drifter brewing is one of South Africa’s to top craft beer manufacturer organization. Drifter
brewing organization significantly broaden its portfolio around the globe. This brand is known
for its strategies to capitalize and explore opportunities in one of the fastest growing segment.
Drifter brewing organization have raised 300000 USD through equity crowdfunding and by the
other financial group or companies, an organization can raise the maximum of $ 1 million.
Current PTY of South Africa has strategic investments in the long-term. Current PTY of South
Africa for investment has ease of transfer of ownership for raising the capital. Current PTY of
South Africa has many companies and financial groups for expanding the business of Drifter
brewing into Kenya, Tanzania, Uganda, Zambia, and Seychelles. Naspers is the third biggest
organization in the country and first South African company to hit a market cap exceeding R1
trillion. Among South Africa's bank, First Rand is the biggest financial house in the country with
a market cap of R387 billion. There is 25 biggest listed organization in the country like AB
InBev SA, Glencore Xstrata, and Richemont, etc. for financing. Drifter brewing organization
have enough sources or financing organization for approaching them within the country for
expanding the brewing business.
Companies or finance groups can be approached in the US to invest
and structure
There are many different types of lending and investment available to funded business and they
are as followed

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Venture Capital
Venture capital provides a professional look for business. By approaching, the venture capital in
the US Drifter brewing organization will get the best way to expand their business within just a
few years out of South Africa. This is the best market to provide the best accessibility to the
Drifter business organization. Examples of venture capital -- Ridge Ventures (San Francisco,
CA), Accel Partners (Palo Alto, CA), and Adams Street Partners. For financing, the business of
Drifter brewing Accel Partners provides is the best option for long-term investment, as they will
provide the loan in a short time to expand business in African countries.
Commercial Lenders
Banks are even less likely than venture capitalists to invest in a Drifter brewing business. These
are the most likely source for financing the business of Drifter brewing organization outside
South Africa. Organization for financing can approach the commercial lenders of US like USA
Business Lending (Financial Consultant), CIT Small Business Lending (Loan Agency), and
Business Lenders LLC (Loan Agency). In commercial lenders for financing, the Drifter brewing
business CIT Small Business Lending is the good option, as they will provide the loan in a short
time to expand business in African countries.
Financial Group
This is the group of financiers, who provides information about the Financiers. For Drifter
brewing business organization can get the help from the financial groups like Principal Financial
Group (Financial Planner), Johnson Financial Group (Bank), First Financial Group, SVB
Financial Group USA Inc (Financial Planner). For financing, the Drifter brewing business first
financial group (Bank) requires lesser file requirements and provides more sustainability to
expand business in African countries.

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Structure
For expanding, a business of Drifter brewing business there is need of capital and time. For
expanding the business of Drifter Brewery Company, it should rely on the structure of
investment trust. This structure will provide Drifter brewing business an alternative to putting the
portfolio of investment trusts, monitoring, and making changes. This will provide a readymade
portfolio that will be managed by expert fund managers of Drifter brewing organization for
expanding the business in African countries. Investment trust will establish a power of
borrowing, competitive pricing, and retain the 15% of income every year.
Recommendation
The most viable option for access the loan is commercial lender like CIT Small Business
Lending (Loan Agency). Drifter brewing company for expanding their business in African
countries should refer the commercial lenders that are a combined commercial finance
experience, credibility, and expertise. This has the innovative financing solutions for business
financing need in expanding other countries. This will provide the approved loan that banks
decline and more competitive than the majority of the bank today for expanding business in other
countries.

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Question 2:
Life in South Africa and its people
South Africa has the greatest diverse culture in the globe. South Africa is a gorgeous place of
natural beauty with a relaxed lifestyle. South Africa is an extremely cosmopolitan area. This
country boasts an impressive eleven official languages with diverse culture, origin, and religion.
Although English is the most commonly spoken language. English still serves as a diplomatic
language between various ethnicities and expats. There is not free healthcare system in South
Africa. There is high hygiene standards of water and good food. Crime is a serious problem in
South Africa. The majority of people in South Africa lives in a rural area where culture and
tradition survived. The major part of the South African population speaks Bantu. South Africa
hosts many numbers of asylum seekers and refugees from Somalia, Zimbabwe, and the
Democratic Republic of Congo. Color gap static prevails in positions of education and income.
The population of the dark is statistically speaking, still the most deprived group with South
African society. Eighty percent of South Africans identify as black Africans. The population of
white is an equally diverse group, constitute about 8 percent of the inhabitants.
Initial Impressions
People of South Africa are friendly, as everyone will greet. The people of South Africa is the
most welcoming people in the world. South Africa is a land of contradictions. That it is beautiful
is indisputable. South Africa is a place of unparalleled natural beauty. South Africa has the
wildest and beautiful beaches on the planet, lush forests, undulating ranges of a mountain, and
desert skies that turn brilliant shades of amber at sunset. This country is a mix of ideas, cultures,

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traditions, and customs. There is too much variety in the limited landscape. South Africa has
nature and weather is fantastic as Cape Town often reaches up to 25C in winter days
Things different from what you had expected
The dress code was different from place to place. The local people in South Africa have adopted
the western dress code. For example, people in South Africa like to wear fashionable Italian and
English suits in the workplace.
The appropriate dressing has become the most important in South Africa culture. The culture of
the workplace in South Africa has become more westernized. There is a formal business setting
in most of the government departments and private sector companies.
The economy of South Africa is primarily in the arrows of large companies. The scenery of
South African has altered since the completion of the Apartheid Regime. The government is
putting support to the small medium enterprises sectors. Decentralization has made the
organization more responsible.
Some things you thought you knew about South Africa and its people
but realized your information was incorrect
The rate of unemployment in South Africa is the highest in the world. The rate of unemployment
in South Africa is 24.1 percent. The rate of unemployment in South Africa has expanded. The
people of South Africa have stopped actively looking for work, as this rate was 34 percent in the
last quarter of 2013.
There is also a lack of basic services of government likes electricity, sanitation, and water. This
has led to frustrations in poorer communities and an increased number of protests of violent.
There are limited gains for the working class.

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Question 3:
South African Business Practices
The business culture of South Africa is marked by personal achievement, entrepreneurship, and
cultural sensitivity. Building a relationship of business requires an intermediary to send a formal
letter of introduction to win the trust of potential partners. This is necessary to take the
appointment in advance before one or two months to obtain an appointment. Business attire is
more casual in other countries. In South Africa, it is necessary to conservative: dark colored
business suits for men and business suits for men or dresses for women. The usual business
practices are exchanging cards takes place during the introduction and treated with respect.
Meetings are a relationship of trust and personal meetings are preferred.
Marketing
The beer marketplace in South Africa is forecasted to grow sooner than any other county over
the following years were driven by growing urbanization, people, and improved GDPs. The
market is being driven by improved GDP growth, development, financial and urbanization. 90%
of the African beer market is highly consolidated with global companies.
Management
Africa is known for native unfettered homebrew and outstanding to its linked health; risk key
global brewers are promised in manufacturing similar merchandises that could strive with the
unfettered alcohol marketplace.
Operations
Development of brand and marketability is the main operation of the South African markets.
This is the main key factors without relying on strong, globally recognized brands. By applying

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the home operations, the organizations of South Africa took brands into distant countries and
constructed them into influential international trademarks.
Strategy
The strategy is the first part of the South Africa internationalization approach. Rapid growth into
the South Africa emerging marketplaces universal through a series of combined schemes with
the geographically distant. Ability to connect with different culture of South Africa gave the
organization-valued flexibility in its location, risk, and choices of investment.
Different from U.S. business practices
Decision-making is the main focused at the topmost of the corporation and choices are made
after discussion. This creates the process protected. It is hard to manage the meeting from mid of
December to mid of January or the two weeks nearby Easter, as these are prime vacations times.
The whole aim during commercial negotiations in South Africa is to influence a consensus.
Relationship building and networking are the main sources for the long-term success of a
business. Most of the business look for a long-term business relationship. Level of debate and
public conflict depend on context. Debated between management and union is common. There is
need of time to make decisions that is depends on various factors such as background,
complexity, reward, risk, cost/budget. Decisions take more time to convert into reality, as a
timeline is longer than any other countries. There are necessary requirements to talk with the
experts for introduction, drafting an agenda, mutual interests, and making small talk.

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Suggestions to an American company intending to do business in
South Africa
There is a number of prospective industries in South Africa to watch for growth. There are many
areas are poised for growth as the economy of Africa is continues to develop. The economy of
South Africa is diversified. There is easy access to the port for increased the exports of goods.
South Africa has the talent of technology development and extensive software that continue to
display the areas of investment.
The Technology of Africa in advance and skip the wired stage of generating exciting innovation,
communication in the financial sector. This is important things need to be followed like
Patience, good people skills, and respect for hierarchy in business.
Many countries have an increasing connection of internet through smartphones as making this an
opportunity for growth, especially in healthcare and brewing business. Trust on counterparts is
important. References are often sought from other trusted organization.
Expanding the business in South African countries can be costly. Collaborating with an
international PEO provider can help to take advantage of the global business benefits and
simplifies the process of expansion. International PEO helps an organization to gain a better
understanding of the labor laws and climate of business to stay compliant and develop a
successful operation in South Africa. A global partner of expansion can provide simplify and
expertise expansion into Africa.
South Africans are more oriented towards hierarchy and order. South African are rigidly
following directives or protocols of their suppliers. They are multi-focused and fluid in their

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communication oriented. It is important to building a relationship and take time to get to know
about employees before engaging in business.
The organization of the US needs to be mindful of body language as South African is more
oriented towards an expressive communication style and a high context.