its society remains divided, while inequality and inequity persist.
One debate is between economicpolicy centrists in the ANC and its alliance partnersin government, the Congress of South African TradeUnions (Cosatu) and the Communist Party, which favourinterventionist left policies. Meanwhile, a strong nationalistcomponent of the ANC – which includes the ANCYouth League – and calls to nationalize the mines andturn to more interventionist land policies have seensome support on the ground but have failed to penetrateformal ANC policy.
Nonetheless, thestrong sense of commitment and ambition in SouthAfrica’s institutions and its democratic traditions as wellas its widely respected Constitution limits the risk of significant
Growth point for africaLargest economy in subsaharanafrica
SOUTH AFRICA UNEMPLOYMENT RATEUnemployment Rate in South Africa decreased to 24.70 percent in the third quarter of 2013 from 25.60 percent in the second quarter of 2013. Unemployment Rate in South Africa is reported by the Statistics South Africa. From 2000 until 2013, South Africa Unemployment Rate averaged 25.5 Percent reaching an all time high of 31.2 Percent in March of 2003 and a record low of 21.9 Percent in December of 2008. In South Africa, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force. This page contains - South Africa Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. 2013-12-10
Doing business report first singapore
Two of these languages are of European origin: English and Afrikaans, the latter originating from Dutch and serving as the main language of most white and coloured South Africans. Though English is commonly used in public and commercial life, it is only the fourth most-spoken home language.Since the end of apartheid, South Africa's unique multicultural character has become integral to its national identity, as signified by the Rainbow Nation concept.
Comfortably within the top 20 of the Global Gender Gap Index, South Africa maintains the top spot in theregion on political empowerment, holding the seventh position on this subindex and the fourth on the womenThe index, released by the World Economic Forum, ranks 135 countries according to how much they havereduced gender disparities based on economic participation, education, health and political empowerment,while attempting to strip out the effects of a country's overall wealth. in parliament indicator. The Global Gender Gap Reports aim to quantify the size of gender-based disparities, tracking their progressover time.
The government has identified massive infrastructure projects as key to boosting the country's economic growth rate and creating employment, and is spending billions of rands on getting the investment ball rolling.
The country's economy is reasonably diversified with key economic sectors including mining, agriculture and fisheries, vehicle manufacturing and assembly, food processing, clothing and textiles, telecommunication, energy, financial and business services, real estate, tourism, transportation, and wholesale and retail trade.
Labour costs low, but not nearly as low as in most other emerging markets, and the cost of the transport, communications and general living is much higher.though this rebound was limited to the automotive, basic chemicals, iron and steel and food and beverages industries. The performance of this sector remains curtailed by the low demand in South Africa's main export markets in the developed world.
South Africa's strong institutional framework is further supported by the high accountability of its privateinstitutions, for which it ranks second in the world, and its financial market development, for which it ranksthird.The report also credits the country with an efficient market for goods and services (28th), and for doing"reasonably well" in more complex areas such as business sophistication (35th) and innovation (39th).
A Country Presentation on Republic of South Africa
Officially the Republic of South Africa, is a
country located at the southern tip of Africa.
2,798 kilometres (1,739 mi) of coastline that
stretches along the South Atlantic and Indian
To the north lie the neighbouring countries
of Namibia, Botswana and Zimbabwe; to the east
are Mozambique and Swaziland; and within it
lies Lesotho, an enclave surrounded by South
in the world by land
Close to 53 million
South Africa’s smooth and peaceful political transition to a
constitutional democracy remains an icon of remarkable political
This political transition brought political freedom and civic rights and
extended social services to millions of South Africans.
The ruling party: The African National Congress (ANC)
Celebrated its centenary in 2012.
Looks set to remain the strongest political force during the second
country strategy period (2013-2016).
The elected ANC President is expected to stand for national presidency
the 2014 election.
South Africa has achieved the 1st Millennium Development Goal
(MDG) − halving the proportion of the population living on less than
USD 1 a day
The government is keen on tackling issues such as providing adequate
public health services, improving the quality of education, tackling
income inequality, reducing unemployment and especially among the
Government announced GROWTH, EMPLOYMENT
REDISTRIBUTION STRATEGY (GEAR) policy
President - Jacob Zuma
Unique system for the election of its president.
Unlike other former British colonies and dominions who have
adopted a parliamentary republican form of government and those that
follow the Westminster system, South Africa's President is both head of
state and head of government and Commander-in-Chief of the South
African National Defence Force (SANDF).
Contrary to presidential systems around the world, the President of
South Africa is elected by the Parliament of South Africa rather than by
the people directly or an Electoral College
South Africa is ranked as an uppermiddle income economy by
the World Bank
Newly industrialized country.
Its economy is the largest and most
developed in Africa
In terms of purchasing power
parity, South Africa has
the seventh-highest per capita
income in Africa.
South Africa has been identified
as a middle power in international
affairs, and maintains significant
28th-largest in the world
23.53 | 2013/12
2000 - 2013
In the third quarter of 2013, South African jobless rate
decreased to 24.7 percent, the lowest value in almost two
years. The number of people without work went down to
4.66 million, down from 4.72 million in the previous three
Emerging Markets Opportunity Index
Source: Grant Thornton SA
Latest publication date: February 2013
South Africa's ranking: 14 out of 26 countries
Global Competitiveness Index
Source: World Economic Forum
Latest publication date: September 2013
South Africa's ranking: 53 out of 148 countries
It took over Brazil to take second place among the BRICS' economies, with
China at 29 and Brazil dropping to 56th place (from 48).
Doing Business report
Source: World Bank and International Finance Corporation
Latest publication date: September 2012
South Africa's ranking: 39 out of 185 countries
Source: The Heritage Foundation
Latest publication date: January
South Africa's ranking: 74 out of
Moderately free Economy
11 official languages, highest number of any country in the world.
About 80 percent of South Africans are of black African ancestry
The remaining population consists of Africa's largest communities of
European, Asian, and multiracial ancestry.
Constitutional democracy, which comprises a parliamentary republic and nine
Rainbow Nation concept.
Corruption Perceptions Index
Source: Transparency International
Latest publication date: November
South Africa's ranking: 69 out of 176
Global Gender Gap Index
Source: World Economic Forum
Latest publication date: 2012
South Africa's ranking: 16 out of
South Africa is the secondSource: Reporters Without Borders
highest ranking African
Latest publication date: January 2013 country, after Lesotho at 14.
South Africa's ranking: 52 out of 179
Cost of living
Latest publication date: June 2012
South Africa's ranking: Johannesburg rated 154 and Cape Town 179
out of 214 cities Johannesburg has been rated as one of the most
affordable city in the world for foreigners in the Worldwide.Cost of
Living survey, regarded as the world's most comprehensive study of
this type.Out of 214 cities on five continents, Johannesburg was found
to be almost three times cheaper than the most expensive city, Tokyo.
Source: HSBC Bank International
Latest publication date: November 2012
South Africa's ranking: 6th best out of 26 countries
South Africa is one of the best countries in the world to live
in, according to a global survey of more than 5 100 expatriates.
Latest publication date: May 2013
South Africa's ranking: 1 out of 7
South Africa was named as the top dream destination in the world by members of the
world's largest travel
and lifestyle social network, Where Are You Now (or WAYN.com).
African Union (AU), and has the largest
economy of all the members.
It is also a founding member of the AU'sNew
Partnership for Africa's Development(NEPAD).
Commonwealth of Nations.
The country is a member of the Group of 77
Southern African Development Community
South Atlantic Peace and Cooperation Zone
Southern African Customs Union
Antarctic Treaty System
World Trade Organization
International Monetary Fund
Modern transport network
Widely available energy
Sophisticated telecommunications facilities.
South Africa’s success in hosting the world’s largest sporting event, the
2010 FIFA World Cup, has shown that the country is capable of
undertaking – and successfully completing – major projects on time.
IT industry competitiveness index
Source: Economist Intelligence Unit
Latest publication date: 2011
South Africa's ranking: 47 out of 66 countries
South Africa ranks 47th out of 66 countries measured in the 2011 IT
industry competitiveness index, with a score of 35 out of a possible 100.
2) Richards Bay
3) Cape Town
4) Port Elizabeth
6) South Africa's only river port, East
London, is situated at the estuary of the
Buffalo River in Eastern Cape province.
Two other coastal cities-Simonstown, south of Cape Town, and
Mossel Bay, between Cape Town and
1. Cape town
5. Port Elizabeth
Mainly mining- platinum and gold
Around 90% of
reserves are found
Agriculture as a percentage of GDP is around 2%.
This implies that the economy is maturing, moving towards the
secondary and tertiary sectors.
638 000 people formally employed (Statistics SA, 2012 Q2) – although
it’s estimated that around 8,5-million people are directly or indirectly
dependent on agriculture for their employment and income.
The sector's significance is largely because of its potential to create
jobs, and is a key focus of the New Growth Path, a plan by the
government to create 5-million new jobs by 2020. Plans include
programmes to promote commercially oriented small-scale farming.
Support is also available to smallholders on land acquired through land
Aquaculture (fish farming)
Large potential for job creation
Scales up to meet increasing domestic demand.
In general, greater focus is being paid to processed goods and
domestic processing capabilities to help boost the value of exports
Counter-seasonality to Europe
Vast biodiversity and marine resources
Competitive input costs
The processing of freshwater aquaculture
Exotic and indigenous meats, nuts, herbs and fruit.
It contributed R280-million to the GDP in 2011, which is 20% of the
total amount generated by the manufacturing sector. It is the third
largest contributor to GDP within the sector, after chemicals and
metals (Statistics SA, 2012).
Relatively small contribution to economy
Just 13.3% of jobs and 15% of GDP.
Labour costs low,
The cost of the transport, communications and general living is much
After a steep decline of 10.4% in
2009, the manufacturing sector
performed well in 2010, growing by
Accounts for about 10% of South Africa's manufacturing exports
Contributes 7.5% to the country's GDP and employs around 36,000
Annual production in 2007 was 535,000 vehicles, out of a global
production of 73 million units in the same year.
Vehicle exports were in the region of 170,000 units in
2007, exported mainly to Japan (about 29% of the value of total
exports), Australia (20%), the UK (12%) and the US (11%). South
Africa also exported ZAR 30.3 billion worth of auto components in
Production plants in South
Component manufacturers with
bases in the country:
About 200 automotive component
manufacturers in South Africa, and
more than 150 others that supply the
industry on a non-exclusive basis..
The industry is concentrated in two provinces:
The Eastern Cape
Companies producing in South Africa can take advantage of the
low production costs and the access to new markets as a result of
trade agreements with the European Union and the Southern
African Development Community
According to the WEF:
South Africa does well on measures of the quality of its institutions
(ranking 41st overall)
Intellectual property protection (18th )
Property rights (20th)
Efficiency of its legal framework in challenging (13th).
Settling disputes 12th
World-class, progressive legal framework.
Legislation pertaining to commerce, labour and maritime issues is
particularly well developed.
Laws relating to competition policy, copyright, patents, trademarks
and disputes conform to international norms and conventions.
The independence of the judiciary is guaranteed by the
Trade and industry is undertaken within the framework of a free
The courts are open to foreigners on exactly the same terms and
conditions as South African citizens.
South African banking regulations rank with the best in the
world, while the sector has long been rated among the top 10 globally.
The JSE Limited rates among the top 20 stock exchanges in the world
by market capitalisation. The JSE's rules and their enforcement are based
on global best practices.
JSE has harmonised its listing requirements, disclosure and continuing
obligations with those of the London Stock Exchange (LSE) and offers
superb investor protection.
Amended company law, which eliminated many
requirements and simplified the incorporation document.
It also reduced the number of days required to register property and
simplified business exit regulatory requirements
Import tariff has been reduced significantly, so as the tax on
international trade and transactions
Besides other African countries—include Germany, the United
States, China, Japan, the United Kingdom and Spain.
Chief exports include corn, diamonds, fruits, gold, metals and
minerals, sugar, and wool. Machinery and transportation equipment
make up more than one-third of the value of the country’s imports.
Other imports include chemicals, manufactured goods, and petroleum.
$101.2 billion (2012 est.)
gold, diamonds, platinum, other metals and minerals, machinery and equipment
Main export partners
United States 7.9%
United Kingdom 4.1% (2012 est.)
$106.8 billion (2012 est.)
machinery and equipment, chemicals, petroleum products, scientific instruments, foodstuffs
Main import partners
United States 7.3%
Japan 4.5% (2012 est.)
$73.6 billion (31 December 2011 est.)
The value of imported goods in South Africa is $106.8 billion
(2012 est), and the value of exported goods is $101.2 billion (2012
Imported goods: machinery and equipment, chemicals, petroleum
products, scientific instruments, foodstuffs
Exported goods: gold, diamonds, platinum, other metals and
minerals, machinery and equipment
Procedure Time to Complete
of Days d Cost
Register at the Companies and Intellectual Property Commission (CIPC)
Open a bank account
Register for income tax, VAT, and employee withholding tax (PAYE and
SITE) at the South African Revenue Service (SARS)
4. Register for unemployment insurance at the Department of Labor
procedure 4) No charge
5. Register with the Commissioner in deference to the Compensation for
Occupational Injuries and Diseases Act
Procedure 4 no charge
Local Currency Foreign Currency Country
Republic of India
Peoples Republic of
Republic of South
10 million people
67% ( R1100 bn to R1834 bn)
GDP per capita
28% ( R28 536 to R36 591)
Real Disposable income
32% ( R17 775 to R23
SA withstands global downturn
Robust financial institution; and
Moderate external debt
Current world economic impact on SA
Driving away potential & existing investors
Investors become more risk averse
from emerging markets to safer investment
SA and the
Slowdown in global demand Rand will experience a
E.g. Slowdown in Chinese economy (larger trading
Cost push inflation(food and oil prices ) negative
impact on SA economy
New member of BRICS
SA ranked amongst the best in the world in;
Financial sector, strength in reporting &
auditing standards, protection of investors rights
Large sized economy
A challenging environment
Structural changes seen in SA
Final household consumption
Final government consumption
Gross fixed capital formation
Gross domestic expenditure
Real GDP growth
Headline CPI inflation
• Significant shift towards service
sectors, major contributor to GDP
• Finance, real estate and business
services sector grown from 16% to
over 20% of GPD
• Decline in the role of mining and
• 12% of the country is suitable for
to agriculture to improve food
• Hold worlds largest reserves of
gold, platinum, chrome ore and
South African competitiveness relative to peers
Positive impact on FDI’s
South African competitiveness relative to peers
Tackling unemployment, poverty and education
• Unemployment rate
dropped from 31%
(2005) to 23.9% (2011)
• Two key trends
• Discourage work
• High rate of youth
of unemployed are
aged between 15-34
• Poor quality of
• Literacy and numeracy
test scores remains low
by African and global
• Government dedicates
6% of GDP to
• SA’s teachers are
amongst the highest
paid in the world
• SA considered an
under- middle income
• 39% of population lives
under the poverty line of
R418 per person per
• NPC plans to reduce the
number of people living
under the poverty line to
zero by 2030
• Create 11 million jobs in
• Improve education system
The State of the Nation Address, 2012/13 Budget
9 key issues within the South African economy
5 major infrastructure
Transition to a low
urban and rural
Building a capable
R4.8 billion was allocated to expanded
public works programme and the New
Jobs fund that began operating in June of
2011, received over 2500 applications and
committed over R1 billion in allocations to
World’s richest country in terms of its mineral reserves
World’s largest producer of platinum, chrome, vanadium and
manganese, the third-largest gold-miner, and offers highly
sophisticated mining-related professional services, contributing
significantly to the BRICS resource pool.
Third largest coal exporter
Globally recognized financial market development and sophistication
The regulation of the Johannesburg Stock Exchange was ranked 1st in the
South Africa is ranked 2nd for both the soundness of banks and the efficacy
of corporate boards.
Over the past decade, substantial increases in government social service and
infrastructure development. (R642 Billion in last 3 years)
How the world rates south africa report
Global competitive index report 2013
Africa Competitiveness index report
Doing business report: World Bank
Emerging Markets opportunity index report: Grant Thorton
Economic freedom report by The Heritage Foundation
IT industry competitiveness index: Economist Intelligence Unit
Corruption Perceptions Index : Transparency International