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South Africa's economy, ranked as upper-middle income by the World Bank, is currently one of the largest economies on the African continent. Historically, South Africa’s economy was primarily built on primary and secondary industries, such as mining and manufacturing, but in recent decades, and in line with global developments, growth has shifted to the tertiary industries. Presently, industries that contribute to the economy include finance, real estate and business services; manufacturing; and wholesale and retail trade. Despite long periods of positive economic growth, unemployment remains one of the key challenges faced by South Africa. |
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- Today’s South Africa is one of the most sophisticated, diverse and promising emerging markets globally. Strategically located at the tip of the African continent, South Africa is a key investment location, both for the market opportunities that lie within its borders and as a gateway to the rest of the continent, a market of about 1- billion people.
- South Africa is the economic powerhouse of Africa and forms part of the BRICS group of countries with Brazil, Russia, India and China. It has a favourable demographic profile and its rapidly expanding middle class has growing spending power.
- South Africa has a wealth of natural resources (including coal, platinum, coal, gold, iron ore, manganese nickel, uranium and chromium) and it enjoys increased attention from international exploration companies, particularly in the oil and gas sector.
- It has world-class infrastructure, exciting innovation, research and development capabilities and an established manufacturing base. It is at the forefront of the development and rollout of new green technologies and industries, creating new and sustainable jobs in the process and reducing environmental impact.
- South Africa has sophisticated financial, legal and telecommunications sectors, and a number of global business process outsourcing (BPO) operations are located in the country.
- It has political and macro-economic stability, an abundant supply of semiskilled and unskilled labour, and it compares favourably to other emerging markets in terms of the overall cost of doing business. For professional jobs, labour costs are less than half of the cost of European countries. For manufacturing jobs, labour costs are around one-third cost of Europe.
- The South African Government has introduced wide-ranging legislation to promote training and skills development and fast-track the building of world-class skills and competences.
- One of the main reasons for South Africa becoming one of the most popular trade and investment destinations in the world is due to the country ensuring that it can meet specific trade and investment requirements of prospective investors.
- South Africa has a host of investment incentives and industrial financing interventions that are aimed at encouraging commercial activity and its trade rules favour a further expansion in South Africa’s burgeoning levels of international trade.
- South Africa’s unrivalled scenic beauty and reputation for delivering value-for money make it an attractive leisure and business travel destination.
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The National Development Plan (NDP) offers a long-term perspective. It defines a desired destination and identifies the role different sectors of society need to play in reaching that goal. The NDP aims to eliminate poverty and reduce inequality by 2030. According to the plan, South Africa can realise these goals by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society. |
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Economic Reconstruction and Recovery Plan
The Economic Reconstruction and Recovery Plan aims to build a new economy and unleash South Africa’s true potential. The overarching goal of the plan is to create sustainable, resilient and inclusive economy. It will focus on the following priority areas:
- Energy security.
- Industrial base to create jobs.
- Mass public employment programme.
- Infrastructure development.
- Macro-economic interventions.
- Green economy.
- Food security.
- Reviving the tourism sector.
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SOUTH AFRICAN ECONOMY AT A GLANCE |
Polulation |
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Population, total |
60,041,996 (2021) |
Population growth (annual %) |
1.2 (2021) |
Life expectancy at birth, total (years) |
64 (2020) |
Young population |
63% under the age of 35 |
Urban population |
67,4% (2020) |
Unemployment |
33,9% (2nd quarter of 2022) |
Labour force |
15.6 million |
Economic indicators |
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GDP in $ |
419.95 billion (2021) |
GDP per capita in $ |
6,994.2 (2021) |
GDP growth (annual %) |
4.9 |
External debt |
38.3 % of GDP (2021) |
Budget deficit |
5.7% of GDP) |
Central government debt, total (% of GDP) |
39.6 (2000) |
Inflation |
6.7% (average in 2022) |
Structure of the economy |
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Agriculture |
2,8% of the GDP |
Mining |
7,1% of the GDP |
Manufacturing |
13% of the GDP |
Services |
76% of the GDP |
Trade |
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Exports of goods and services |
27,8% of the GDP |
Agriculture |
6,3% of the exports |
Mining |
41,8% of the exports |
Manufacturing |
50% of the export earnings |
Trade partners |
Europe, SADC, China, US |
Total value of exports |
US$ 85,227 million |
Total value of imports |
US$ 68,943 million |
The top exports |
Platinum, iron, gold, coal and cars |
The top imports |
Crude Petroleum, Refined Petroleum, Motor vehicles; parts and accessories, Cars and Broadcasting Equipment |
Investments |
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FDI (FOREIGN Direct Investment) stock |
($41.15 billion) in 2021 |
Largest source of FDI |
UK |
ICT Ranked in Africa on the ICT Development Index |
3rd |
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www.statssa.gov.za
www.thedtic.gov.za |
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