In February 2006, the South African government announced the implementation of the "Accelerated and *** Enjoyable Growth Initiative for South Africa" (ASGISA), increasing the government's intervention in the economy, and promoting employment and poverty reduction through measures such as strengthening the construction of infrastructure, adopting the strategy of prioritizing the development of industries, and strengthening education and human resources training. At the same time, the government continued to pursue proactive fiscal and prudent monetary policies, with the central bank raising interest rates three times and keeping inflation under control at 3-7%. During the year, domestic demand in South Africa was strong, and the continued low rand drove export growth. The tertiary sector, including retail, transportation and communications, finance and real estate, continued to be the main driver of economic growth, while manufacturing and construction grew rapidly.
The main economic data for 2006 are as follows:
Gross Domestic Product (GDP): $255.1 billion.
GDP per capita: 5,381 dollars.
Annual GDP growth rate: 5.0%.
Currency name: Rand (Rand) 1 Rand = 100 cents (CENT).
Exchange rate (average): 1 USD = 6.77 Rand.
Inflation rate (average): 4.7%
Official unemployment rate (September 2006): 25.6%.
(Source: Statistics South Africa, South African Reserve Bank, South African Department of Trade and Industry, etc.)
ResourcesThe country is rich in mineral resources, with 59 types of minerals now in proven reserves and being mined. Gold, platinum group metals, manganese, vanadium, chromium, silicon-aluminate reserves ranked first in the world, vermiculite, zirconium, titanium, fluorite ranked second, phosphate, antimony ranked fourth, uranium, lead ranked fifth, coal, zinc ranked eighth, iron ore ranked ninth, copper ranked fourteenth. According to the data provided by the South African Department of Mines, the proven mineral reserves in 2005: 36,000 tons of gold (accounting for 40.1% of the world's total reserves, the same below), 70,000 tons of platinum group metals (87.7%), 4 billion tons of manganese (80%), 12 million tons of vanadium (31%), 80 million tons of vermiculite (40%), 5.5 billion tons of chromium (72.4%), 341,000 tons of uranium ( 7.2%), 31,022 million tons of coal (3.5%), 1,500 million tons of iron ore (0.9%), 220 million tons of titanium (18.3%), 14 million tons of zirconium (19%), 80 million tons of fluorite (16.9%), 2,500 million tons of phosphates (5.0%), 200,000 tons of antimony (6.4%), 3 million tons of lead (2.0%), 15 million tons of zinc (3.3%) ), and 13 million tons of copper (1.4%).
Industrial Manufacturing, construction, energy and mining are the four main sectors of South African industry.
The manufacturing sector is complete and technologically advanced. The main products are iron and steel, metal products, chemicals, transportation equipment, machine building, food processing, textiles, clothing and so on. The iron and steel industry is the pillar of South Africa's manufacturing industry, with six major iron and steel joint companies, more than 130 steel enterprises. In recent years, textiles, clothing and other lack of competitiveness of the industry shrinking, automobile manufacturing and other emerging export industries develop faster.
In 1994-1999, the South African government*** mobilized and invested 12.5 billion rand in the construction of low-cost housing to alleviate the housing problem of black township residents, but the project progress is slow. In recent years, the construction industry has been declining due to outdated equipment, a severe shortage of skilled workers, monopolization of the industry and the world economic downturn.
South Africa's energy industry has a strong foundation and more advanced technology, with output accounting for about 15% of South Africa's GDP. Power industry is more developed, power generation accounted for two-thirds of the whole of Africa, of which about 92% for thermal power generation, for the world's lowest electricity costs in one of the countries. State-owned South African Power Corporation (ESKOM) is the world's seventh largest power production and the ninth largest power sales enterprises, with the world's largest dry-cooled power plant, supplying 95% of South Africa and the whole of Africa 60% of the electricity consumption. Near Cape Town is the only nuclear power plant on the African continent, the Koeberg Nuclear Power Station, with a generating capacity of 1.844 million kilowatts. In addition, South Africa's SASOL (SASOL) company's coal synthetic fuel oil and natural gas synthetic fuel oil technology commercialization level of the world's leading position, and its production of liquid fuel oil accounted for about one-fourth of South Africa's total fuel supply.
South Africa's mining industry, about two-thirds of the private sector control, mineral products are an important component of exports. The mining industry directly employs about 420,000 people, and in 2006 it accounted for about 6.2% of GDP.
South Africa is the world's largest gold producer and exporter. 2006 South Africa's gold production decreased by 7.5%, but still ranked first in the world, accounting for 11.8% of world gold production. Gold exports accounted for 8% of South Africa's exports in 2006. With the platinum group metal market demand expansion, South Africa gold mining cost rise and other reasons, the platinum group metal has gradually replaced gold as the most important export mineral products. South Africa is also the world's fourth largest diamond producer, accounting for about 9% of the world's production. South Africa De Beers is the world's largest diamond production and sales company, with total assets of 20 billion U.S. dollars, its turnover once accounted for 90% of the world's diamond supply market, and is still controlling 60% of the world's trade in rough diamonds. 2005 production of the main minerals are as follows: diamonds 15,775 kilograms of pull, 295 tons of gold, chromium 7494 kilotons, manganese 4612 kilotons, iron ore 40 million tons, coal 245 million tons, copper 97 kilotons.
Agriculture and fisheries agriculture is more developed. Arable land accounts for about 13% of the land area, but high quality land accounts for only 22% of the arable land. Agriculture, forestry and fisheries employ about 6% of the population, and their products account for 15% of non-mining export earnings. 2006 agricultural GDP was about 2.2% of GDP. Agricultural production is significantly affected by climate change. Corn is the most important food crop, with 2005 production of 11.45 million tons. Various kinds of canned food, cigarettes, alcohol, coffee and beverages are sold well overseas. Flowers and fruits are produced in abundance, and wine enjoys a good reputation. The output of major crops is as follows (in thousands of tons):
2001 2002 2003 2004 2005
Maize 7,487,9732 9,392,942 9,482,11,450
Wheat 2,504 2,438,1547 1,687 1,804
Sugarcane 2,3876 2,157 2,303,23013 20419 19095
Grapes 1328 1522 1664 1761 1682
Potatoes 902 782 805 900
Citrus 1118 1263 1267 1330 1140
(Source: South Africa's Quarterly Economic Review 2006)
Livestock is relatively well developed. In 2004, South Africa's stock of all kinds of livestock was 13.82 million head of cattle, 25.51 million head of sheep, 1.67 million head of pigs and 6.44 million head of goats. 85% of the required meat is self-sufficient, and 15% is imported from neighboring countries such as Namibia, Botswana, Swaziland, and Australia, New Zealand and some European countries.
Aquaculture produces 5% of all Africa and 0.03% of the world's production. South Africa's commercial fishing fleet has more than 500 vessels of all kinds. About 28,000 people in the country are engaged in marine fishing. The main species fished are mussels, trout, oysters and Cape hake. The annual catch is about 580,000 tons, with an output value of nearly 2 billion rand. In addition, South Africa's beekeeping industry is worth about R20 million a year.
The tourism industry is currently South Africa's fastest growing industry, the output value of about 8% of GDP, employing 1.2 million people. Tourism resources are abundant and facilities are perfect. There are more than 700 large hotels, more than 2,800 large and small hotels, hotels and more than 10,000 restaurants. Tourist spots are mainly concentrated in the north-east and the east and south coasts. Ecotourism and folklore tourism are the two most important growth points of South Africa's tourism industry. 2006 foreign tourists to South Africa amounted to 8.51 million, is the most hosted by tourists in Africa. However, South Africa's high crime rate has a major negative impact on the full realization of its tourism potential.
Transportation has the most comprehensive transportation system in Africa and plays an important role in the economy of the country as well as neighboring countries. Railroads and highways are the mainstay, with air transportation developing rapidly. In recent years, the construction of transport infrastructure in towns and economic development zones has been strengthened, and the privatization process of the state-run air and road companies has entered a substantial stage.
Railways: total length of about 34,100 kilometers, of which 18,200 kilometers are electrified, with more than 2,000 electric locomotives. Annual freight traffic is about 175 million tons. The luxury blue coaches from Pretoria to Cape Town have an international reputation.
Highways: national, provincial and local. There are 9,400 kilometers of national roads. 1,440 kilometers of two-way highways, 440 kilometers of one-way highways, 56,967 kilometers of one-way roads and 2,200 kilometers of toll roads. Annual passenger traffic is about 4.5 million and freight traffic is 3.1 million.
Water transportation: maritime transportation industry is well developed, 99% of the trade with countries outside Africa to be completed by sea, the main ports are Cape Town, Durban, East London, Port Elizabeth, Richards, Saldanha and Mossel Bay. There are 990 merchant ships with a total tonnage of 755,000 tons. The annual port throughput is about 1.2 billion tons and in 2002*** handled 25.2 million containers. Durban is Africa's busiest port and largest container distribution center, with an annual container handling capacity of 1.2 million.
Air transportation:*** There are more than 5,900 various types of shipping planes, among which South African Airways owns 48 various types of civil aviation planes*** including more than 30 Boeing planes and 15 Airbuses, which is one of the world's largest 50 airlines. There are approximately 27 civil airports, 11 of which are international. There are more than 600 domestic flights and 70 international flights per week, with direct flights to Africa, Europe, Asia and a number of countries in the Middle East and South America. The main international airports are Johannesburg International Airport, Durban International Airport and Cape Town International Airport. Johannesburg International Airport is the busiest airport on the African continent.
Pipeline Transportation: South Africa's pipeline transportation network is 3,000 kilometers long, transporting 85% of the country's processed petroleum products and 13.8 billion liters of liquid fuels in 2001/2.
Communication NetworksSouth Africa's telecommunications and information technology industries are developing rapidly, and the level of telecommunications development is ranked 20th in the world. *** There are 5.3 million fixed-line telephones, accounting for 40% of those in Africa. There are about 15 million cell phone users. There are 3.28 million Internet users. TELKOM, the South African telecommunications company, is the 28th largest telecommunications company in the world; the two largest information technology companies, DIDATA and DATATEC, have already occupied a place in the British and American markets. Its satellite broadcasting and network technology level in the world's more competitive, South Africa's Millard International Holdings (MIH) has monopolized most of the satellite broadcasting business in sub-Saharan Africa. The software industry is also beginning to move towards the international market.
The financial and monetary situation in recent years is as follows: (in millions of rands)
2001/02 2002/03 2003/04 2004/2005 2005/2006
Revenue 248101 278885 298870 347291 411163
Expenditure 262905 291529 328744 368086 416799
Deficit or surplus -14804 -12644 -29874 -20795 -5635
(2006 Quarterly Review of the Economy)
Official foreign exchange reserves at the end of December 2006 were $23.1 billion (excluding gold). As of September 2006, total external debt was about $55.1 billion.
The South African Reserve Bank (The South African Reserve Bank), the central bank of South Africa, was founded in 1920 as a joint-stock limited bank, enjoying a great deal of independent decision-making power, except for the president and deputy president appointed by the government. Headquartered in Pretoria, it had assets of R130.2 billion in 2004.
At the end of December 2004, there were 35 registered banks in South Africa***, including 15 foreign bank branches and 2 thrifts, in addition to 45 foreign banks with representative offices in South Africa. *** There are 8,438 branches and representative offices employing 117,000 people. The four largest of these banks are:
Amalgamated Banks of South Africa Group Limited is the largest banking group in South Africa, with total assets of R269 billion (March 2003), and was established in 1991.
Standard Bank Group Ltd. with total assets of $27.5 billion, formerly known as Standard Bank Investments Limited, was established in 1969.
FirstRand Holdings Limited (FirstRand Holdings), founded in 1998.
Nedcor Bank Ltd (Riley Bank): total assets of R164 billion.
The above four major banking groups have total assets of about R1,101 billion, accounting for 82% of the total assets of the South African banking sector.
Foreign TradeSouth Africa has a free trade regime and is a founding member of the World Trade Organization (WTO). The European Union and the United States are South Africa's traditional trading partners, but in recent years, trade with Asia, the Middle East and other regions is also growing. 2006 total foreign trade in goods of about 126.8 billion U.S. dollars. Foreign trade in recent years is as follows (in billions of rand):
2001 2002 2003 2004 2005 2006
Exports: 2513 3141 2755 2962 3314 3965
Imports: 2160 2754 2588 3069 3517 4650
(Source) Source: South African Department of Trade and Industry website)
Exports include gold, metals and metal products, diamonds, food, beverages and tobacco, machinery and transportation equipment, and other manufactured goods. The main imports of machinery and transportation equipment, chemical products, petroleum, etc. The top ten export destinations in 2006 were: Japan, the United States, the United Kingdom, Germany, the Netherlands, China, Switzerland, Belgium, Spain and Italy; the top ten sources of imports were: Germany, China, the United States, Japan, Saudi Arabia, the United Kingdom, Iran, France, Italy and South Korea.
Foreign capital Since the 1994 elections, South Africa has changed from being a net exporter of capital to a net importer. Foreign capital is mainly portfolio capital, direct investment (FDI) is less. 2006 South Africa absorbed 3.7 billion U.S. dollars in foreign direct investment. FDI in South Africa amounted to US$3.7 billion in 2006, mainly from Europe and the United States, especially from Europe. Europe accounted for nearly 70% of cumulative investment in South Africa, and the Americas accounted for nearly 20%. The United Kingdom is the country with the largest cumulative direct investment in South Africa, accounting for about two-fifths. Most of the investment by foreign companies with assets in South Africa is concentrated in the mining, manufacturing, finance, oil processing and marketing sectors. The government's ongoing restructuring program of state-owned enterprises will help South Africa attract more foreign direct investment capital in the medium to long term in the future.
People's life in South Africa is a middle-income country, but the rich and the poor is extremely wide, the income gap between the races is obvious. Two thirds of the national income is concentrated in the hands of the rich, who account for 20% of the total population. South African government in 1994 launched the "reconstruction and development program", plans to raise 37.5 billion rand in five years, for the construction of housing, water, electricity and other facilities and the provision of basic health care services. 1997, the formulation of the "white paper on social security", the poverty reduction and the elderly, disabled and young. In 1997, the White Paper on Social Security was formulated, placing poverty alleviation and support for the elderly, the disabled and the young at the forefront of social welfare. 2005 saw a life expectancy of 46 years per capita and an infant mortality rate of 5.5%; there were 443 doctors per 100,000 people. AIDS is one of the serious social problems currently facing South Africa.
Culture and Education Because of the long-standing apartheid education system, black people's access to education was far lower than that of whites. in January 1995, South Africa formally implemented free and compulsory education for children between the ages of 7 and 16, and abolished the textbooks of the apartheid era. The Government had continuously increased its investment in education and had made efforts to reform the curriculum, the system of financing education and the higher education system; in 2004, the adult literacy rate had been 82 per cent. The proportion of the population with tertiary education is about 8.4%. 13.1 billion rand was spent on education in 2005, representing 5.5% of GDP. Notable universities include the University of Kingsford, the University of Pretoria, the University of South Africa, the University of Cape Town and the University of Zululand.
Press and Publication The number of regularly published newspapers and magazines is the highest in Africa. *** There are 19 daily newspapers, more than 10 weekly newspapers, more than 200 other provincial and local newspapers, more than 800 various magazines. The largest circulations are: The Sunday Times (English), The Daily Sun (English), The Reporter (Afrikaans), The Soweto Man (English), City Press (English), The Star (English), The Citizen (English). Of these, the Sunday Times, the Reporter and the Sunday Independent are national newspapers.
The South African Press Association (SAPA) is the only national news agency that is not governmental and not-for-profit. The South African Broadcasting Corporation (SABC) has radio and television stations. The radio station broadcasts 22 programs in 11 languages for 3,492 hours a week domestically and 208 hours a week in 4 languages abroad under the name "Channel Africa". The television station has six channels, three of which are official channels broadcasting in 11 languages, and M-NET is the most influential pay television channel in Africa.