south africa factsheet - standard bank€¦ · • south africa is an attractive market for...

• Population: – 53 675 563 people in 2015.

• Unemployment, poverty and inequality remain challenges.

• The threat of ‘brain drain’ of skills remains, with skilled workers leaving the country to look for better job opportunities abroad. • A growing middle-class population o�ers immense opportunities for the development and growth of the retail, entertainment and tourism sectors.

• South Africa boasts one of the largest ICT markets in Africa. The country is considered to be the most advanced in terms of technology deployed and services o�ered.

• According to estimates, South Africa has a 49% Internet penetration rate and only 17% high-speed broadband penetration. Mobile has gained the largest share of the country’s broadband market.

ECONOMICS

MAJOR CITIES

• The country has one of the most advanced and entrenched democracies in sub-Saharan Africa.

• The African National Congress (ANC) dominates the country’s political landscape.

• The social and economic inequalities stemming from the apartheid era could be a major threat to the country’s political stability over the longer term.

• The country’s government remains committed to helping �nd solutions to the problem of global warming.

• Current environmental problems include the growth in water usage which is outpacing supply; rivers are being polluted by agricultural runo� and urban discharge; air pollution is resulting in acid rain; and soil erosion and deserti�cation are a�ecting the quality of available land.

Top import products• Mineral fuels, oils and distillation products (23.3%)• Machinery and boilers (13.3%)• Electrical, electronic equipment (9.7%)

Top import origins• China (15.5%)• Saudi Arabia (7.1%)• United States of America (6.6%)

IMPORT

(f ) FORECASTEDCurrency: RandR23.99 = £1*, R16.80= $1* (18 January 2016)

In�ation%

GDP%

2014

6.1

1.5

2015(f )

4.7

1.4

2016(f )

5.5

1.9

2017(f )

5.7

2.3

2018(f )

5.9

2.4

COMPOSITION OF THE ECONOMY

• Commercial centre• Key sectors include �nancial and business service; retail and wholesale trade, community and social services; and manufacturing.

Detailed sources to be found in the brochure.

JOHANNESBURG

• Key sectors include automotive and port and harbour facilities.

PORT ELIZABETH

• Industrial centre• Main industries include sugar re�ning, ship building and repairing, petroleum re�ning, automobile assembly and manufacture of food products.

DURBAN

• Industrial centre with industries including iron and steel casting; automobile, railroad and machinery manufacture.

PRETORIA(TSHWANE)

• Key sectors include �nancial and business services; energy; manufacturing; tourism; agriculture and �shing.

CAPETOWN

Top export products• Pearls, precious stones, metals and coins (15.5%)• Ore, slag and ash (12.9%)• Mineral fuels, oils, distillation products (10.5%)

Top export locations• China (9.6%) • United States of America (7.1%) • Japan (5.4%)

EXPORT

SOCIAL TECHNOLOGY POLITICAL/LEGAL ENVIRONMENT

CHALLENGES TO DOING BUSINESS

• Electricity shortages and higher power tari�s are constraining energy-intensive investment, including mineral processing.• Extensive and tight labour regulations have resulted in a rigid labour market. Employers are obliged to meet racial – and gender-based employment quotas.• The country’s export-oriented mining and manufacturing sectors are continuously being challenged by an unpredictable exchange rate and labour issues.• Reliance on the country’s roads for freight transportation increases the threat of congestion and heightens logistics risks. • There is a lack of su�cient local skills as a result of weak education levels and a brain-drain of well-educated workers looking for better job opportunities.

• South Africa is an attractive market for investors, as re�ected by the robust FDI in�ows that the country has experienced, largely due to the favourable legal and business environment.• The country’s diverse economy makes it possible to move away from the more traditional focus on primarily minerals exports towards a competitive industrialised economy.• There are attractive renewable energy opportunities, especially with regard to wind and solar power generation.• Trade and industry take place within the framework of a free enterprise economy.• South Africa’s geographic location o�ers a gateway to investment in the African continent.• Inter-regional trade agreements facilitate trade �ows and reduce costs.

OPPORTUNITIES FOR DOING BUSINESS

SOUTH AFRICA FACT SHEET 2015

Agriculture, 2.5%Personal Services, 2.5%

Manufacturing, 13%

Transport, 10%

Finance, 20.5%

Government Services, 17%

Electricity, 3.7%Construction, 4.1%

Wholesale and Retail Trade, 14.8%

Mining, 8.4%