Economy of South Africa
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2 Social Services 3 Statistics |
Overview
South Africa is a middle-income, developing country with an abundant supply of resources, well-developed financial, legal, communications, energy, and transport sectors, a stock exchange that ranks among the 10 largest in the world, and a modern infrastructure supporting an efficient distribution of goods to major urban centers throughout the region. However, although growth has been positive for ten consecutive years, it has not cut into the 30% unemployment, and daunting economic problems remain from the apartheid era, especially the problems of poverty and lack of economic empowerment among the disadvantaged groups. Other problems are crime, corruption, and HIV/AIDS. At the start of 2000, President Mbeki vowed to promote economic growth and foreign investment by relaxing restrictive labour laws, stepping up the pace of privatization, and cutting unneeded governmental spending. His policies face strong opposition from organized labour.
HIV/AIDS is a huge drain on the economy, with South Africa having an estimated 4.79 million HIV infections. The government has recently, after much delay, devoted substantial resources to fighting the epidemic. A recent study (from the African Journal of Aids Research, Thomas Rehle and Olive Shisana) showed the infection rate starting to level off, (from 4.2% to 1.7% infection rate for 15-49 year olds), and AIDS deaths peaking at 487 320 in 2008.
Since South Africa opened its borders after the demise of apartheid, international crime syndicates have penetrated the country, and much of the worlds drug trade flows through its borders. South Africa is also the fourth-largest producer of marijuana in the world.
The volatility of the rand has affected economic activity, with the rand plummeting during 2001 (hitting an historic low of 13.85 to the dollar, sending inflation skyrocketing, and causing the reserve bank to increase interest rates), but since dramatically recovering, trading at under 7 in October 2003, leading to a recovery in inflation, and the reserve bank to drop rates, but exporters threatening to cut jobs.
Social Services
Since 1994, the government has channelled substantial resources into social programmes and services, with varying degrees of success.
- Households with access to clean water: 85% in 2001, 80% in 1996
- Households using electricity for lighting: 69.7% in 2001, 57.6% in 1996
- People who have completed grade 12 schooling: 20,4% in 2001, 16.3% in 1996
- Households in formal housing: 63,8% in 2001, 57.5% in 1996
- Households with chemical or flush toilets: 51.9% in 2001, 50.5% in 1996
- Social grants: 2.6 million people (R10 billion) in 1994, 6.8 million people (R34.8 billion) in 2003
- Pupil-teacher ratio: 38:1 in 2003, 43:1 in 1994
- People with access to electricity: 70% in 2003, 32% in 1994
Statistics
GDP: purchasing power parity - $412 billion (2001 est.) ($296.1 billion - 1999 est.)
GDP - real growth rate: 1,5% (Q1 2003), 3.1% (2002), 0.6% (1999 est.)
GDP - per capita: purchasing power parity - $9400 (2001 est.) ($6,900 - 1999 est.)
GDP - composition by sector:
agriculture:
3%
industry:
31%
services:
66% (2001 est.)
Population below poverty line: 24% (2003 est) 42% (1994)
Household income or consumption by percentage share: lowest 10%: 1.4% highest 10%: 47.3% (1993)
Inflation rate (CPI): (Consumer Price Index) 7.8% (May, 2003), 9.2% (2002). 5.2% (1999), 8.8% (1994), 16.2%(1987),(10.5%(1978)
Inflation rate (CPIX): (Consumer Price Index excluding homeloans) 7.7% (May, 2003), 9.3% (2002). 6.9% (1999), 7.0%(1998)
Labour force: 15 million economically active (1997)
Labour force - by occupation: agriculture 30%, industry 25%, services 45% (1999 est.)
Unemployment rate: 37% (2001 est.) (30% - 1999 est.)
Budget:
revenues:
$22.6 billion
expenditures:
$34.7 billion, including capital expenditures of NA billion (FY94/95 est.)
Industries: Mining (world's largest producer of platinum, gold, chromium), automobile assembly, metalworking, machinery, textile, iron and steel, chemicals, fertilizer, foodstuffs
Industrial production growth rate: 7% (2001 est.)
Electricity - production: 194.38 billion kWh (2000)
Electricity - production by source:
fossil fuel:
92.09%
hydroelectric:
0.83%
nuclear:
7.08%
other:
0% (1998)
Electricity - consumption: 181.52 billion kWh (2000)
Electricity - exports: 4.549 billion kWh (2000)
Electricity - imports: 5.294 million kWh (2000)
Agriculture - products: maize, wheat, sugarcane, fruits, vegetables; beef, poultry, mutton, wool, dairy products
Exports: $32.3 billion (f.o.b., 2001 est.)
Exports - commodities: gold, diamonds, other metals and minerals, machinery and equipment
Exports - partners: EU 33%, US 20%, Japan 6%, Mozambique 2.5% (2001 est.)
Imports: $26 billion (f.o.b., 1999 est.)
Imports - commodities: machinery, foodstuffs and equipment, chemicals, petroleum products, scientific instruments
Imports - partners: EU 41%, US 11.4%, Saudi Arabia 7.3%, Japan 7% (2001 est.)
Debt - external: $25.5 billion (2000 est.)
Foreign reserves: $6.5 billion (Oct, 2003)
Economic aid - recipient: $539 million
Currency: 1 rand (R) = 100 cents
Exchange rates: Rand (R) per US$1 - 7.60 (July 2003), 6.12439 (January 2000), 6.10948 (1999), 5.52828 (1998), 4.60796 (1997), 4.29935 (1996), 3.62709 (1995)
Fiscal year: 1 April - 31 March
- See also : South Africa
