The United Nations Development Program's Human Development Index (HDI) ranked South Africa 110 out of 169 countries in 2010. [97] According to a study by Dani Rodrik, the shrinkage of the non-mineral tradable sector since the early-1990s and the weakness of the export-oriented manufacturing were more to blame for the low level of employment.[98]. [57], In 2018, South Africa produced 19.3 million tonnes of sugarcane (14th largest producer in the world), 12.5 million tonnes of maize (12th largest producer in the world) 1.9 million tons of grape (11th largest producer in the world), 1.7 million tons of orange (11th largest producer in the world) and 397 thousand tons of pear (7th largest producer in the world). [143] At present, blacks contribute some 50% of total government transfers, while receiving roughly 80%. [104], Refugees from poorer neighbouring countries include many immigrants from the Democratic Republic of the Congo, Mozambique, Zimbabwe, Malawi and others, representing a large portion of the informal sector. The industry is concentrated in two provinces, the Eastern Cape and Gauteng. Manufacturing output declined 3.4% compared to the same month a year earlier in January, which contrasted December's 1.9% increase. [26]:12, South Africans in general, regardless of race, hold what would be considered "traditional" stances on gender roles for men and women. Initially, the lack of capacity was triggered by a failure at Koeberg nuclear power station, but a general lack of capacity due to increased demand and lack of government planning soon came to light. In 1997, Telkom, the South African telecommunications parastatal, was partly privatised and entered into a strategic equity partnership with a consortium of two companies, including SBC, a U.S. telecommunications company. This boosted the country’s GDP and gave it the influence to overtake South Africa and become the number one country with the African biggest economy. [77][78], The banking industry, overseen by the South African Reserve Bank, is dominated by four local players: Nedbank, ABSA, Standard Bank and First Rand. [142], South Africa has about three times as many recipients of social benefits as it has income tax-payers, an extremely high ratio by international standards. One study using calculations based on National Income Dynamics Study (NIDS) data suggests that 47% of South Africans live below the poverty line: 56% of blacks live in poverty compared to 2% of whites, using an arbitrary income poverty line of R502 per capita. South Africa continues to see a very cautious approach to lifting its economic lockdown restrictions, while the damage caused to the economy is ramping up. Black Economic Empowerment policies have been credited with creating a class of Black South Africans with a level of wealth on the same order of magnitude as very rich White South Africans. [99][100] South Africa's Bureau of Statistics estimates that between 1 million and 1.6 million people in skilled, professional, and managerial occupations have emigrated overseas between 1994 and 2004 and that, for every emigrant, 10 unskilled people lose their jobs. According to a December 2010 article by the South African Government Communication and Information System's now-defunct BuaNews news service, South Africa was said to compare well to other emerging markets on affordability and availability of capital, financial market sophistication, business tax rates and infrastructure, but to fare poorly on the cost and availability of labour, education, and the use of technology and innovation. [citation needed] A Second Network Operator was to be licensed to compete with Telkom across its spectrum of services in 2002, although this license was only officially handed over in late 2005 and has recently begun operating under the name, Neotel. Through the Industrial Development Corporation, the apartheid-era government set up and controlled a wide array of public corporations, many relating to industrial infrastructure. [41] The finance minister was seen as central to efforts to restore confidence in South Africa. [91] Unemployment has increased substantially since the African National Congress came to power in 1994, increasing from 15.6% in 1995 to 30.3% in 2001. The global economic downturn made the problem worse, wiping out more than one million jobs. This led to the Great Trek, spreading farming deeper into the mainland, as well as the establishment of the independent Boer Republics of Transvaal and the Orange Free State. The country's borders were reopened on 1 October 2020, with some exceptions to tourists travelling from specific European countries and the US, due to high levels of COVID-19 activity taking place there. The agricultural industry contributes around 5% of formal employment, relatively low compared to other parts of Africa, as well as providing work for casual labourers and contributing around 2.8% of GDP for the nation. [39] These issues, and others linked to them such as crime, have in turn hurt investment and growth, consequently having a negative feedback effect on employment. In 2012 the country's top imports were machinery and equipment, petroleum products, chemicals, foodstuffs and scientific instruments. Therefore, excluding those who have given up looking for employment. South Africa is one of the world's leading mining and mineral-processing countries. (Walmart did buy Massmart in 2011), South Africa has been riven by arguments over whether the state should take over mineral resources. The British annexed the area as a result of the Boer War which witnessed the placement of Boer women and children in British-built concentration camps. [92] In the second quarter of 2010, the jobless rate increased to 25.3%, and the number of people with work fell by 61,000 to 12,700,000. On 24 February, the government presented the budget for FY 2021–2022—which begins on 1 April—to Parliament, sticking to its commitment to fiscal consolidation and debt stabilization. [137] Although, it should also be noted that black South Africans make up the majority of the population at 79.2% while white South Africans make up only 8.9% of the population according to the Statistics South Africa census released in 2011. South Africa has a sophisticated financial structure, with the JSE Limited, the largest stock exchange on the African continent, ranking 17th in the world in terms of total market capitalisation, which is $1,005 Trillion as of August 2020. Client Log In, Facebook The South Africa IHS Markit Purchasing Managers’ Index (PMI) dropped to 50.2 in February from 50.8 in January. the correct government support, South Africa can increase the jobs in the manufacturing, testing, and analysis sectors of the growing Space industry. [142] Other taxes include a value-added tax and a capital gains tax, with the overall tax burden amounting to 23.4% of total domestic income. Agriculture lost 32,000 jobs, employment in the construction industry fell by 15,000. This has impacted adversely on the cost of borrowing. Some proposals have included wage subsidies for people being trained, a minimum wage differentiated by age, and extended periods of probation for young workers. There has been a large degree of human capital flight from South Africa in recent years. The Economy Of South Africa Overview Of The Economy Of South Africa. In 2016 the top five challenges to doing business in the country were inefficient government bureaucracy, restrictive labour regulations, a shortage of skilled workers for some high tech industries, political instability, and corruption, whilst the country's banking sector was rated as a strongly positive feature of the economy. [144], The Unemployment Insurance Fund is financed out of premiums, contributions and benefits depend on earnings, and focuses on insuring workers against the risk of income loss. South Africa was also ranked 12th for financial market development; it ranked 29th for market size, 33rd for business … The majority of the workforce is composed of males, while the majority of women do not participate. As a result of the tensions, S&P Global cut South Africa's credit rating to junk status on Monday 3 April 2017. [22] However, it is the most industrialized, technologically advanced, and diversified economy on the African continent. Overall, Americans bought $250 million worth of South Africa agricultural products last … [69], The manufacturing industry's contribution to the economy is relatively small, providing just 13.3% of jobs and 15% of GDP. Large component manufacturers with bases in the country are Arvin Exhaust, Bloxwitch, Corning and Senior Flexonics. [50] South Africa has shifted from a primary and secondary economy in the mid-twentieth century to an economy driven primarily by the tertiary sector in the present day which accounts for an estimated 65% of GDP or $230 billion in nominal GDP terms. [109] As of 2014 roughly ten percent of the Top 100 companies on the Johannesburg Stock Exchange were directly held by black investors though Black Economic Empowerment schemes. [55], In 2008, South Africa's estimated share of world platinum production amounted to 77%; kyanite and other materials, 55%; chromium, 45%; palladium, 39%; vermiculite, 39%; vanadium, 38%; zirconium, 30%; manganese, 21%; rutile, 20%; ilmenite, 19%; gold, 11%; fluorspar, 6%; aluminium, 2%; antimony, 2%; iron ore, 2%; nickel, 2%; and phosphate rock, 1%. [6][59] However, due to the aridity of the land, only 13.5% can be used for crop production, and only 3% is considered high potential land. South Africa’s public finances are in a perilous state. Get a sample report showing our regional, country and commodities data and analysis. High inequality is perpetuated by a legacy of exclusion and the nature of economic growth, which is …
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