South Africa: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
South Africa is the economic giant of the African continent, contributing nearly 40% to the total African GDP. In the secondary sector, 75% of the biggest African companies are South African. Rebonding after the severe international economic crisis and enjoying the benefits of the organization of the World Football Cup in 2010, the South-African economy has experienced a slight recovery in 2010, with an estimated growth at 3%, with an expectation of a speedier growth in 2011.
The government is mainly focusing on the construction of infrastructure, support of the industry, improvement of labor skills, on speeding up the agricultural reform and reducing criminality. After pursuing the policy of economic stimulus in 2010, the government is planning to tighten its budgetary policy in 2011 and reduce non-priority expenses in order to contain the deficit.
Unemployment, which affects nearly a third of the country's active population and AIDS (infecting nearly 12% of the population) are a cause for major concerns to the country's overall economic development. A third of the population continues to live below the poverty line and social inequalities remain high.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 283.98 | 363.66e | 422.04 | 443.29 | 464.97 |
| GDP (Constant Prices, Annual % Change) | -1.7 | 2.8 | 3.4e | 3.6 | 4.0 |
| GDP per Capita (USD) | 5,741e | 7,274 | 8,342 | 8,658 | 8,974 |
| General Government Balance (in % of GDP) | -4.8 | -4.5 | -3.7e | -3.4 | -3.1 |
| General Government Gross Debt (in % of GDP) | 30.9 | 33.8e | 36.1 | 37.6 | 38.7 |
| Inflation Rate (%) | 7.1e | 4.3 | 5.9e | 5.0 | 5.0 |
| Unemployment Rate (% of the Labor Force) | 23.9 | 24.9 | 24.5 | 23.8 | 23.6 |
| Current Account (billions USD) | -11.50 | -10.11 | -11.62e | -16.58 | -22.09 |
| Current Account (in % of GDP) | -4.1 | -2.8 | -2.8 | -4.8 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
South Africa has a subsoil rich in mineral resources. It is the world's largest producer and exporter of gold and platinum and the 5th largest producer of diamonds. The country produces 70% of the world's platinum and also has 60% of the world's coal reserves.
The country has diverse manufacturing industries and is a world leader in several specialized sectors, including railway rolling stock, synthetic fuels, mining equipment and machinery. The services sector is flourishing (almost two thirds of the GNP) and tourism should continue to grow after the stimulus it has received from the World Football Cup. Agriculture only represents a small part of the GNP but employs 30% of the country's active population. South Africa is the 6th largest producer of wine in the world.
South Africa has a sophisticated financial structure with an active stock exchange that ranks among the world's top 20 in terms of market capitalization. Nevertheless, it has to be pointed out that the Rand weakened considerably during the financial crisis. Consequently, the South African government has put in place funds to support companies to guard against a higher depreciation.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 5.1 | 25.0 | 69.8 |
| Value Added (in % of GDP) | 3.0 | 31.3 | 65.7 |
| Value Added (Annual % Change) | -3.2 | -7.2 | 1.3 |
Source: World Bank - Last Available Data.
| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| South African Rand (ZAR) - Average Annual Exchange Rate For 1 USD | 6.77 | 7.05 | 8.26 | 8.47 | 7.32 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
South Africa is very open to international trade. The share of international trade in the country's GNP exceeded 64%, an increase of almost 20% over the last 4 years. The three top trade partners of South Africa are: the United States, Japan, and the European Union. Since the beginning of the world economic crisis, the country's exports remain weak, while import is steadily increasing, leaving the trade balance in deficit.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 78,715 | 88,450 | 100,532 | 73,172 | 94,040 |
| Exports of Goods (million USD) | 58,175 | 69,784 | 80,782 | 61,677 | 81,821 |
| Imports of Services (million USD) | 13,900 | 16,127 | 16,515 | 14,390 | 18,001 |
| Exports of Services (million USD) | 11,912 | 13,499 | 12,394 | 11,656 | 14,104 |
| Imports of Goods and Services (Annual % Change) | 18.3 | 9.0 | 1.4 | -17.4 | 5.5 |
| Exports of Goods and Services (Annual % Change) | 7.5 | 5.9 | 2.4 | -19.5 | 16.5 |
| Imports of Goods and Services (in % of GDP) | 32.5 | 34.2 | 38.6 | 28.3 | 27.1 |
| Exports of Goods and Services (in % of GDP) | 30.0 | 31.3 | 35.6 | 27.4 | 25.5 |
| Trade Balance (million USD) | -4,195 | -5,160 | -4,448 | 534 | 3,838 |
| Trade Balance (Including Service) (million USD) | -6,224 | -7,824 | -8,619 | -2,254 | -615 |
| Foreign Trade (in % of GDP) | 62.5 | 65.5 | 74.2 | 55.7 | 52.7 |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| China | 11.4% |
| United States | 9.9% |
| Japan | 9.0% |
| Germany | 7.7% |
| United Kingdom | 5.2% |
| See More Countries | 56.8% |
| Main Suppliers (% of Imports) |
2010 |
| China | 14.3% |
| Germany | 11.3% |
| United States | 7.3% |
| Japan | 5.3% |
| Saudi Arabia | 4.0% |
| See More Countries | 57.7% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
The executive branch of government is directly or indirectly dependent on the support of the parliament, often expressed through a vote of confidence. President can dissolve Parliament if a majority of the members of the National Assembly seek its dissolution and at least three years have lapsed since the last election.
• African Christian Democratic Party (ACDP) - claims to represent "Bible believing Christians"
• Inkatha Freedom Party (IFP) – advocates prevention of one-part state and social justice for all
• Democratic Alliance (DA) – a liberal political party which officially opposes the ANC
• South African Communist Party (SACP) – advocates communist ideology
• United Democratic Movement (UDM) – advocates individual self-reliance, liberty and diversity
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012