Managing Risks in the New South Africa With a population of 49 million, South Africa represents 10% of Africa’s population and 45% of the continent’s gross domestic pro-duct (GDP). Its GDP is almost as big as the rest of sub-Saharan Africa’s 47 countries combined. As the engine of growth for Africa, South Africa had been growing at 5% annually until 2008. As Africa’s sole member of the G-20 group, South Africa has the 20th-largest GDP in the world and is among the top ten emerging economies. Before 1994, South Africa had been ruled by a white minority government that earned notori-ety for its apartheid (racial segregation) policy. In 1994, South Africa accomplished a peaceful transi-tion of power, with the black majority party, African National Congress (ANC), taking over power. ANC’s leader, Nelson Mandela, a Nobel Peace Prize lau-reate, served as its first post-apartheid president. Since then, South Africa has embarked on a new journey toward political reconciliation and economic liberalization. Yet, doing business in South Africa has always been risky. Although the risks associated with apart-heid are well known, managing risks in the post-apartheid era is no less challenging. Since 1994, South Africa has introduced fundamental and comprehensive changes to its rules of the game, unleashing both uncertainties and opportunities. The democratically elected ANC government has adopted a Black Economic Empowerment (BEE) policy aiming to increase blacks’ share in the econ-omy. While the neighboring Zimbabwe has violently expropriated land from white farmers and redistrib-uted it to blacks, the South African government is committed to protecting property rights. BEE aims to accomplish its goals through peaceful means.