Economic trends
South Africa is the economic giant of the African continent, contributing nearly 40% to the total African GDP. 75% of the biggest African companies are South African in the secondary sector. The growth rate slowed down in 2008 because of prolonged power cuts and global economic volatility. However, growth could pick up again with the preparations of the 2010 football World Cup from 2009.
Inflation had exceeded 8% during 2008 before decreasing during 2009 as food and oil price came down. The government is mainly focusing on building infrastructures, supporting industry, improving the work force skills, accelerating the land reform and reducing crime. Nevertheless, unemployment, which affects nearly a third of the country's active population and AIDS (infecting nearly 12% of the population) are a cause for major concerns to the country's overall economic development.
It should be noted that South Africa has suffered an abnormally high rate of investor disinterest in 2009. The net capital exports were higher than the imports. This caused an increase in demand for the dollar and other strong currencies, consequently causing the depreciation of a certain number of currencies including the South African Rand.
Main branches of industry
South Africa has a subsoil rich in mineral resources. It is the world's largest producer and exporter of gold and platinum and the 5th largest producer of diamonds. The country produces 70% of the world's platinum and also has 60% of the world's coal reserves.
The country has diverse manufacturing industries and is a world leader in several specialized sectors, includes railway rolling stock, synthetic fuels, and mining equipment and machinery. The services sector is flourishing (almost two thirds of the GNP). Agriculture only represents a small part of the GNP but employs 30% of the country's active population. South Africa is the 6th largest producer of wine in the world.
South Africa has a sophisticated financial structure with an active stock exchange that ranks among the world's top 20 in terms of market capitalization. Nevertheless, it has to be pointed out that the Rand weakened considerably during the financial crisis. Consequently, the South African government has put in place funds to support companies to guard against a higher depreciation.
International trade
South Africa is very open to international trade. The share of international trade in the country's GNP exceeded 64%, an increase of almost 20% over the last 4 years. The three top partners of South Africa are: the United States, Japan, and European Union. However, the country's trade balance remains in deficit.
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