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Home , Aaron Motsoaledi, Angie Motshekga, Bathabile Dlamini, Collins Chabane, Dipuo Peters, Ebrahim Patel

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 Head of government President Jacob ZUMA Capital Mostly semiarid; subtropical along east coast; sunny days, Climate cool nights IsiZulu, IsiXhosa, , Sepedi, English, Setswana, Language Sesotho, Xitsonga, siSwati, Tshivenda, isiNdebele , , Ekurhuleni (East Rand), , 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%

Inflation 5% (2011) Profile General 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, , 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  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 :  Min. of Basic Education :  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 :  Min. of Energy : Elizabeth  Min. of Finance :  Min. of Health : Pakishe , 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 :  Min. of Labor : Nelisiwe  Min. of Mineral Resources :  Min. of : 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 :  Min. of Science & Technology :  Min. of Social Development :  Min. of Sport & Recreation :  Min. of State Security :

 Min. of Tourism : Terminals Ports and  Min. of Trade & Industry : Robert Haydn DAVIES

 Min. of Transport : Joel Sibusiso NDEBELE Chapter: Chapter:

3

 Min. of Water & Environmental Affairs :  Min. of Women, Youth, Children, & People With Disabilities : Lulu XINGWANA  Min. in the Presidency - National Planning Commission :  Min. in the Presidency - Performance Monitoring & Evaluation :

Collins CHABANE

Ministry Name Ministry Chapter: Chapter:

4

African Christian Democratic Party or ACDP []; African National Congress or ANC [Jacob ZUMA]; Congress of the People or COPE []; Democratic Alliance or DA []; or FF+ []; Political parties and or ID []; Inkatha Freedom leaders Party or IFP []; Pan-Africanist Congress or PAC []; United Christian Democratic Party or UCDP []; United Democratic Movement or UDM [] 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