South Africa Discuss at least four positive impacts which this corporation has had on South Africa's economy and population
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Answer:
The economy of South Africa is the second largest in Africa, after Nigeria.[13] It is one of most industrialized countries in Africa.[14] South Africa is an upper-middle-income economy by the World Bank – one of only four such countries in Africa (alongside Botswana, Gabon and Mauritius).[15] Since 1996, at the end of over twelve years of international sanctions, South Africa's Gross Domestic Product almost tripled to peak at $400 billion in 2011, but has since declined to roughly $295 billion in both 2016 and 2017. In the same period, foreign exchange reserves increased from $3 billion to nearly $50 billion creating a diversified economy with a growing and sizable middle class, within two decades of ending apartheid.[16][17]:chapter 1 South African state owned enterprises play a significant role in the country's economy with the government owning a share in around 700 SOEs involved in a wide array of important industries. In 2016 the top five challenges to doing business in the country were inefficient government bureaucracy, restrictive labour regulations, a shortage of skilled workers, political instability, and corruption, whilst the country's strong banking sector was rated as a strongly positive feature of the economy.[18][19] The nation is amongst the G-20, and is the only African member of the group.[20] In 2019, the average wage of white South Africans is 3.5 times higher than that of black South Africans; 20% of black households live in extreme poverty compared to 2.9% of white households. Unemployment affects 27% of the population and three million people have fallen into poverty between 2011 and 2015.[21]
The formal economy of South Africa has its beginnings in the arrival of Dutch settlers in 1652, originally sent by the Dutch East India Company to establish a provisioning station for passing ships. As the colony increased in size, with the arrival of French Huguenots and German citizens, some of the colonists were set free to pursue commercial farming, leading to the dominance of agriculture in the economy.
At the end of the 18th century, the British annexed the colony. This led to the Great Trek, spreading farming deeper into the mainland, as well as the establishment of the independent Boer Republics of Transvaal and the Orange Free State.
South Africa has a comparative advantage in the production of agriculture, mining and manufacturing products relating to these sectors.[42] South Africa has shifted from a primary and secondary economy in the mid-twentieth century to an economy driven primarily by the tertiary sector in the present day which accounts for an estimated 65% of GDP or $230 billion in nominal GDP terms. 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.[43]
Seasonally adjusted and annualised quarterly value added (Q1 2013)[44]
Industry Value added
(R billion, 2004 prices)
Wholesale and retail trade, hotels and restaurants 246.584
Transport, storage and communication 178.591
Taxes less subsidies on products 215.668
Personal services 107.690
Mining and quarrying 97.096
Manufacturing 296.586
General government services 271.209
Finance, real estate and business services 422.850
Electricity, gas and water 33.951
Construction 59.943
Agriculture, forestry and fishing 43.382
GDP at market prices 1,973.552
Developments and Maintenance
As part of an international attempt to modernize infrastructure, South Africa has faced increasing pressure to invest government funds into its water and electricity sectors. At current, these sectors are underfunded by approximately US$464 billion (This is according to the G20 GI Hub).
Income levels
Annual per capita personal income by race group relative to white levels[119]
Year White Coloured Asian Black
1917 100 22.0 22.1 9.1
1924 100 20.0 19.4 7.9
1936 100 15.6 23.1 7.6
1946 100 16.3 23.0 8.9
1956 100 16.9 21.9 8.6
1960 100 15.9 17.1 8.1
1970 100 17.3 20.2 6.8
1975 100 19.4 25.4 8.6
1980 100 19.1 25.5 8.5
1987 100 20.9 30.2 8.5
1993 100 19.3 42.0 10.9
1995 100 20.0 48.4 13.5
2000 100 23.0 41.0 15.9
2008 100 22.0 60.0 13.0
Gini coefficient by race in 2004[120]
White Coloured Asian Black Total
Rural 0.37 0.38 – 0.43 0.51
Urban 0.36 0.45 0.43 0.53 0.56
Overall 0.36 0.47 0.43 0.51 0.59