South Africa Country Profile South Africa Country Profile Politics Economy Trade & Industries General Profile Total area 1,219,090Km² Population 48,810,427 2008 2009 2010 Population World (in Billion) 6.7 6.8 6.9 Government type Republic Chief of state President Jacob ZUMA Head of government President Jacob ZUMA Capital Pretoria Mostly semiarid; subtropical along east coast; sunny days, Climate cool nights IsiZulu, IsiXhosa, Afrikaans, Sepedi, English, Setswana, Language Sesotho, Xitsonga, siSwati, Tshivenda, isiNdebele Johannesburg, Cape Town, Ekurhuleni (East Rand), Durban, Major City Pretoria Economy Profile 2009 2010 2011 World GDP Growth -5% 9% - World GDP (in Trillions) 58.1 63.3 - South Africa GDP Growth -1.7% 2.8% 3.4% GDP $422 billion GDP – Per capita $11,000 agriculture: 2.5% GDP – Composition by sector industry: 31.6% services: 65.9% General Profile General Inflation 5% (2011) Exchanges Rates 1 USD = 7.164 rand (ZAR) Primary Economy Sector Mining, Mineral Resources Chapter: Chapter: 1 Unemployment Rate 48.2% Economy Profile Economy Chapter: Chapter: 2 Ports and Terminals Cape Town, Durban, Port Elizabeth, Richards Bay, Saldanha Bay Cape Town International Airport Durban International Airport King Shaka International Airport Lanseria International Airport International Airports OR Tambo International Airport Mmabatho International Airport Pilanesberg International Airport Polokwane International Airport National Council of Provinces - percent of vote by party - NA; seats by party - NA; National Assembly - percent of vote by party - ANC Election results 65.9%, DA 16.7%, COPE 7.4%, IFP 4.6%, other 5.4%; seats by party - ANC 264, DA 67, COPE 30, IFP 18, other 21 Min. of Agriculture, Forestry, & Fisheries : Tina JOEMAT- PETTERSSON Min. of Arts & Culture : Paul MASHATILE Min. of Basic Education : Angie MOTSHEKGA Min. of Communications : Dina PULE Min. of Cooperative Governance & Traditional Affairs : Richard BALOYI Min. of Correctional Services : Nosiviwe MAPISA-NQAKULA Min. of Defense & Military Veterans : Lindiwe Nonceba SISULU Min. of Economic Development : Ebrahim PATEL Min. of Energy : Elizabeth Dipuo PETERS Min. of Finance : Pravin GORDHAN Min. of Health : Pakishe Aaron MOTSOALEDI, Dr. Min. of Higher Education & Training : Bonginkosi "Blade" NZIMANDE Min. of Home Affairs : Nkosazana DLAMINI-ZUMA Min. of Human Settlements : Gabriel Mosima "Tokyo" Ministry Name SEXWALE Min. of Intl. Relations & Cooperation : Maite NKOANA- MASHABANE Min. of Justice & Constitutional Development : Jeff RADEBE Min. of Labor : Nelisiwe Mildred OLIPHANT Min. of Mineral Resources : Susan SHABANGU Min. of Police : Nkosinathi Emmanuel MTHETHWA Min. of Public Enterprises : Malusi Knowledge Nkanyezi GIGABA Min. of Public Service & Admin. : Radhakrishna PADAYACHIE Min. of Public Works : Thembelani "Thulas" NXESI Min. of Rural Development & Land Reform : Gugile NKWINTI Min. of Science & Technology : Naledi PANDOR Min. of Social Development : Bathabile DLAMINI Min. of Sport & Recreation : Fikile MBALULA Min. of State Security : Siyabonga CWELE Min. of Tourism : Marthinus VAN SCHALKWYK Terminals Ports and Min. of Trade & Industry : Robert Haydn DAVIES Min. of Transport : Joel Sibusiso NDEBELE Chapter: Chapter: 3 Min. of Water & Environmental Affairs : Edna MOLEWA Min. of Women, Youth, Children, & People With Disabilities : Lulu XINGWANA Min. in the Presidency - National Planning Commission : Trevor MANUEL Min. in the Presidency - Performance Monitoring & Evaluation : Collins CHABANE Ministry Name Ministry Chapter: Chapter: 4 African Christian Democratic Party or ACDP [Kenneth MESHOE]; African National Congress or ANC [Jacob ZUMA]; Congress of the People or COPE [Mosiuoa LEKOTA]; Democratic Alliance or DA [Helen ZILLE]; Freedom Front Plus or FF+ [Pieter MULDER]; Political parties and Independent Democrats or ID [Patricia DE LILLE]; Inkatha Freedom leaders Party or IFP [Mangosuthu BUTHELEZI]; Pan-Africanist Congress or PAC [Motsoko PHEKO]; United Christian Democratic Party or UCDP [Lucas MANGOPE]; United Democratic Movement or UDM [Bantu HOLOMISA] South Africa has a sophisticated and diversified economy where finance, real estate and business services contribute 20.7% to GDP, manufacturing contributes 13.4% and mining plays a critical role in job creation. For these sectors macro-economic indicators like interest rates and the strength of the Rand are critical. But it also has an economy consisting of the very poor who eke out a living through near-subsistence agriculture or the informal sector, for whom economic statistics mean little. Relatively small improvements in living standards can make a huge difference to their lives. Prudent macroeconomic policies and tight banking regulation limited the impact of the global downturn on South Africa during the global financial crisis. And years of fiscal responsibility provided the space for the government to respond effectively when the country briefly dipped into recession in 2009. The National Treasury continues to implement a counter cyclical fiscal policy and forecasts a deficit of 4.8% of GDP for 2011/12 declining to 3% by 2014/15. South Africa Economy The National Treasury warned in February 2012 that the global outlook had once again deteriorated and that much of Europe, Characteristics South Africa’s major trading partner, risked slipping into recession. This could harm domestic growth prospects. The National Treasury downgraded its growth forecast for 2012 from 3.4% to 2.7%. It is then expected to recover, reaching 4.2% by 2014. The forecasted growth rate falls short of the 6% rate analysts believe the country needs to tackle its stubbornly high unemployment levels. The official unemployment figure is 25.2% but the real figure is probably nearer 40%. Two thirds of all unemployed are below the age of 35. The South African Government has embarked on an ambitious multi-year capital expenditure programme worth approximately £70 billion, to tackle infrastructure bottlenecks in energy, transport and water. It is hoped that the infrastructure programme will create short term employment and also provide the infrastructure necessary for the economy to grow at a faster pace in the longer term. South Africa’s trade rhetoric is firmly focused on the BRICS (which Political parties and leaders and parties Political it officially joined in February 2011) and it strives to be seen as the ‘gateway to Africa.’ But it still has strong links to the Western Chapter: Chapter: 5 economies. Its trade with the EU, at £30bn, is still over double that of its single largest trading partner, China, at £13bn. South Africa Economy Characteristics Economy Africa South Chapter: Chapter: 6 Besides forging bilateral trade and economic relations, the Department of Trade and Industry is committed to increasing South Africa’s involvement in large capital projects on the continent. The following areas have been prioritised: infrastructure and logistics (roads, ports etc.) energy and ICT Trade & Investment water and waste management Policy transport construction oil and gas infrastructure agribusiness mining human-resource development Internationally, open economies with an export base perform much better in terms of economic growth than do closed economies. Increasingly, production is becoming globally integrated, and South Africa forms a vital part of international supply chains. Therefore, dismantling barriers to trade, especially those faced by South African exporters, is a critical component of any economic strategy that promotes sustainable growth. South Africa’s global economic strategy focuses on Africa and a strong development agenda. Partnerships with countries on the continent are therefore considered vital and strategic. South Africa’s economy is inextricably connected to that of the southern Trade and Foreign Policy African region, and its success is linked to the economic recovery of the continent through the New Partnership for Africa’s Development (Nepad). At continental level, South African investment and trade with African countries has increased dramatically since 1994. Africa is now South Africa’s fourth-largest export destination. Trade with the rest of Africa totalled about R50 billion in 2001 and increased to R108 billion in 2007, with exports amounting to R68 billion and in the Southern African Development Community (SADC) region totalled some R68 billion, with exports reaching R44 billion and imports R24 billion. ACP, AfDB, AU, BIS, BRICS, C, CD, FAO, FATF, G-20, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, International IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, organization MONUSCO, NAM, NSG, OECD (Enhanced Engagement, OPCW, participation Paris Club (associate), PCA, SACU, SADC, UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNITAR, UNSC (temporary), UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO, ZC South Africa Potential small businesses, internet economy, hydrokinetic energy chemicals Policy & Investment Trade Trade Opportunities metals benefication, including the capital-goods sector creative industries (crafts, film, content and music) Chapter: Chapter: 7 clothing and textiles durable consumer goods wood, pulp and paper Mining (world's largest producer of platinum, gold, chromium), Main Industry automobile assembly, metalworking, machinery, textiles, iron and steel, chemicals, fertilizer, foodstuffs, commercial ship repair Biggest Company Sasol, FirstRand, MTN Group, Sanlam, Naspers, Gold Fields Main Industry Main Chapter: Chapter: 8 .