American Chamber of Commerce releases figures on impact of US business in South Africa

12 December 2006

Press release

Media Contact::
Luanne Grant
Executive Director
American Chamber of Commerce
+27 11 7882048
e-mail: amcham@amcham.co.za

American Chamber of Commerce releases figures on impact of US business in South Africa
92% of companies committed to sustaining or increasing investment in South Africa

JOHANNESBURG South Africa 12 December 2006 --The American Chamber of Commerce
(Amcham) in South Africa today released the results of its annual membership survey, which this year aimed to quantify the extent of US business activity in South Africa in terms of employment, turnover and corporate social investment. This is the first time that Amcham has conducted a quantitative survey on aspects of its members’ business.

According to the report: “Quantifying the impact of US business in South Africa”, 120 companies surveyed achieve a collective R86,8 billion ($12,4 billion1) in turnover; 147 companies provide direct and indirect employment for more than 227 000 people, and 105 companies contribute more than R583 million ($83 million) each year in corporate social investment.

The results give a new perspective on the impact US companies have in South Africa, said Roger Crawford, President of Amcham. “The annual membership survey has, up to now, focused on business sentiment, but this is the first time we have attempted to quantify the extent of US business activity in South Africa. The results show that US companies are strongly commited to South Africa , and that the level of US business confidence in South Africa is increasing.

“These results lend support to the figures released at the South Africa Business Conference in New York in November, which showed an increase in foreign direct investment into Africa of 78 percent last year to a record $31 billion, with South Africa receiving $6,5 billion.”

Mr Crawford pointed out that the substantial investment in corporate social programmes by US companies could be attributed to the favourable exchange rate, the existence of corporate trust funds, and the effects of Sullivan Code. “Trusts are an efficient vehicle for sustainable CSI,” said Mr Crawford. “Coupled with the dollar-based investment practice of most companies, and the fact that many US companies in South Africa were signatories to the Sullivan Code in 1977, the practice of corporate social investment is well entrenched with US companies operating in South Africa . The Sullivan Code required signatories to spend the equivalent of 12% of their payroll on corporate social investments.”

According to executive director Luanne Grant, Amcham intends conducting the quantitative survey annually, and increasing the number of companies involved and business aspects examined. “More and more members are asking the question “how are we doing?” and such surveys help them understand how they are performing in aspects of their business. We have used the results from this year’s survey to identify our focus areas for next year’s survey. Based on the employment and turnover figures, skills development will be a priority for us next year. ” (ends)

1 Calculated at an exchange rate of $1.00/R7.00

About the American Chamber of Commerce (Amcham)

Based in Johannesburg AmCham is the collective voice of US investment in South Africa. Founded in 1977 as a non-profit association, it is one of 105 such chambers around the world. For information go to: www.amcham.co.za