Multinational investors wrestle SA red tape It is still significantly more difficult to set up a business in SA than in countries such as Mauritius and Singapore, even for a multinational, says AMD country manager Imi Mosaheb SPEAKING A YEAR after AMD, the US-headquartered semiconductor company, first opened an office in SA, Mosaheb says establishing a physical presence in SA has been challenging.

Before August last year, the company used representatives and contractors for more than eight years. "They did what they could under the guidance that they received," says Mosaheb. "But I moved here in May or June last year and we got our registration done l the legal stuff."

He recalls that the group had to register for VAT twice, as the original paperwork was lost after submission. Until it was registered for VAT, it could not operate. He adds that even though AMD is a multibillion-dollar revenue corporation, he and his board of directors had to sign personal liability statements before a bank would open an account for the group.

"SA has a long way to go," Mosaheb says. "In countries like Singapore and Mauritius you can incorporate in 48 hours and they deliver every single document you need. Within one week you can set up shop and operate." In SA, it took AMD seven to eight months to complete setting up.

While hiring a foreigner in countries such as the US takes six to eight weeks, it can take more than six months to obtain a work permit in SA, says Mosaheb, himself a foreigner who has had to go through that process.

He says the group is still working on some issues relating to local regulations, which is taking time. "Probably some of that has to do with us as well, because of being a multinational." He says that, for example, documents have to be sent from here to the group`s headquarters to be reviewed.

Despite these and other challenges, establishing a direct presence in SA has proved to be the right decision. Mosaheb says having an office in the country has enhanced AMD`s credibility in the local market. "AMD is here. It`s confidence building."

That has shown in the group`s market share. Before the office was opened, AMD had a local market share of 5% against Intel`s 95%. "We have the latest data from the IDC and some other sources," says Mosaheb. "They`re claiming that we`re between 16% and 20%. We believe we`re more than that, because they do not track everyone we sell to."

As an example, he says market research firm GFK now states which retail companies it does not track, "because it`s not fair to create the impression that we`re losing market share". He says the main focus has been on sales through JD Group, "but you have a lot more than JD Group now. You have Makro growing, you have Game growing, Computer Corporation, Matrix Warehouse, IT Junxion... But they don`t want to subscribe because there`s value in the data."

Mosaheb says AMD is adding more names to its base in the commercial space. "Not only servers. Some companies have converted 100% to AMD." It is also working with Sita to sell into government.

He adds that the group is also "doing very well" on the consumer front and its relationship with the channel is "going great".

"The channel takes a while to build confidence with, but I think we are there today. We do what we say and we say what we do. And we`re involving a lot more channel partners."

Having completed its first year in the country, Mosaheb is confident about the year ahead. He says times have changed in the technology industry. In the past, it would take months for new technology to reach SA, but now it is here within weeks of a new launch.

In addition, despite a slowing global economy, IT spending is up, both in the consumer and enterprise spaces. "The market is growing. We see growth everywhere," he says.