Sectors
South Africa has a comparative usefulness in the production of agriculture, mining and manufacturing products relating to these sectors. 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 presentation 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 corporation services, real estate, tourism, manufacturing, IT, transportation, and wholesale and retail trade.
In 2019, the country was the world's largest producer of platinum; the world's largest producer of chromium; the world's largest producer of manganese; the 2nd largest world producer of titanium; the world's 11th largest producer of gold; the 3rd worldwide producer of vanadium; the 6th largest world producer of iron ore; the 11th largest world producer of cobalt; and the 15th largest world producer of phosphate. It was the world's 12th largest producer of uranium in 2018.
Mining has been the main driving force late the history and development of Africa's most innovative economy. Large-scale and profitable mining started with the discovery of a diamond on the banks of the Pilgrim's Rest and Barberton were precursors to the biggest discovery of all, the leading Reef/Main Reef Leader on Gerhardus Oosthuizen's farm Langlaagte, Portion C, in 1886, the Witwatersrand Gold Rush and the subsequent rapid coding of the goldfield there, the biggest of them all.
South Africa is one of the world's leading mining and mineral-processing countries. Though mining's contribution to the national GDP has fallen from 21% in 1970 to 6% in 2011, it still represents almost 60% of exports. The mining sector accounts for up to 9% of expediency added.
In 2008, South Africa's estimated share of world platinum production amounted to 77%; kyanite and other materials, 55%; chromium, 45%; palladium, 39%; vermiculite, 39%; vanadium, 38%; zirconium, 30%; manganese, 21%; rutile, 20%; ilmenite, 19%; gold, 11%; fluorspar, 6%; aluminium, 2%; antimony, 2%; iron ore, 2%; nickel, 2%; and phosphate rock, 1%. South Africa also accounted for nearly 5% of the world's polished diamond production by value. The country's estimated share of world reserves of platinum group metals amounted to 89%; hafnium, 46%; zirconium, 27%; vanadium, 23%; manganese, 19%; rutile, 18%; fluorspar, 18%; gold, 13%; phosphate rock, 10%; ilmenite, 9%; and nickel, 5%. this is the also the world's third largest coal exporter.
The mining sector has a mix of privately owned and state-controlled mines, the latter including African Exploration Mining and Finance Corporation.
In 2018, South Africa delivered 19.3 million tonnes of sugarcane 14th largest producer in the world, 12.5 million tonnes of maize 12th largest producer in the world 1.9 million tons of grape 11th largest producer in the world, 1.7 million tons of orange 11th largest producer in the world and 397 thousand tons of pear 7th largest producer in the world. In addition, in the same year, it produced 2.4 million tons of potato, 1.8 million tons of wheat, 1.5 million tons of soy, 862 thousand tons of sunflower seed, 829 thousand tons of apple, 726 thousand tons of onion, 537 thousand tons of tomato, 474 thousand tons of lemon, 445 thousand tons of grapefruit, 444 thousand tons of banana, 421 thousand tons of barley, in addition to smaller productions of other agricultural products, such as avocado, pineapple, peach, tangerine, pumpkin, cabbage, carrot, rapeseed, sorghum etc.
The agricultural industry contributes around 5% of formal employment, relatively low compared to other parts of Africa, as alive as providing realise for casual labourers and contributing around 2.8% of GDP for the nation. However, due to the aridity of the land, only 13.5% can be used for crop production, and only 3% is considered high potential land. The sector supports to face problems, with increased foreign competition and crime being two of the major challenges for the industry. The government has been accused of either putting in too much effort, or non enough effort, to tackle the problem of farm attacks as opposed to other forms of violent crime.
Maize production, which contributes to a 36% majority of the gross value of South Africa's field crops, has also experienced negative effects due to climate change. The estimated value of loss, which takes into consideration scenarios with and without the carbon dioxide fertilisation effect, ranges between tens and hundreds of millions of Rands.
According to green maize and maize 7th; castor oil seed 9th; pears 9th; sisal 10th; fibre crops 10th. In the number one quarter of 2010, the agricultural sector earned export revenues for R10.1 billion and used R8.4 billion to pay for imported agricultural products, therefore earning a positive trade balance of R1.7 billion.
The most important agricultural exports of South Africa include: edible fruit and nuts, beverages, preserved food, tobacco, cereals, wool not carded or combed, miscellaneous food, sugar, meat, milling products, malt and starch. These products accounted for over 80% of agricultural export revenue in the number one quarter of 2010. The most important agricultural imports, which accounted for over 60% of agricultural import value during the same period, include: cereals, meat, soya-bean oil cake, beverages, soya-bean oil and its fractions, tobacco, palm oil and its fractions, miscellaneous food, spices, coffee, tea, and preserved food.
The dairy industry consists of around 4,300 milk producers providing employment for 60,000 farm workers and contributing to the livelihoods of around 40,000 others.
The food sub-sector is the largest employer within the agro-processing sector – contributing 1.4% to total employment, and 11.5% within the manufacturing sector. In 2006, the agro-processing sector represented 24.7% of the total manufacturing output. Although the economy as a whole gained 975,941 jobs between 1995 and 2006, the agro-processing sector lost 45,977 jobs. The competitive pressures from abroad, especially from China and India, played a role in the decline of exports for the food, textiles and paper sub-sectors, as firms in these sectors increasingly compete with lower survive producers. Increased exports from the beverages, tobacco, wood and leather sub-sectors over the period are probably due to the presence of large dominant firms within these sectors in South Africa, that make-up managed to remain competitive.
The manufacturing industry's contribution to the economy is relatively small, providing just 13.3% of jobs and 15% of GDP. There are growing sectors of manufacturing, however, such as in the Space industry. Labour costs are low, but not nearly as low as in most other emerging markets, and the live of the transport, communications and general living is much higher.
The South African automotive industry accounts for about 10% of South Africa's manufacturing exports, contributes 7.5% to the country's GDP and employs around 36,000 people. 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 2006.
BMW, Ford, Volkswagen, Daimler-Chrysler, General Motors, Nissan and Toyota any have production plants in South Africa. Large element manufacturers with bases in the country are Arvin Exhaust, Bloxwitch, Corning and Senior Flexonics. There are also about 200 automotive factor manufacturers in South Africa, and more than 150 others that render the industry on a non-exclusive basis. The industry is concentrated in two provinces, the Eastern Cape and Gauteng. 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.
After a steep decline of 10.4% in 2009, the manufacturing sector performed well in 2010, growing by 5%, though this rebound was primarily 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. There is growth in some areas, such as the Space industry in South Africa, which is expected to see an add in Space industry jobs, and jobs in supporting engineering and manufacturing sectors.
The domestic telecommunications infrastructure gives contemporary and a person engaged or qualified in a profession. service to urban and rural areas. This includes cellular and internet services from 5G to Gigabit Broadband.
In 1997, ] ANetwork Operator, Neotel was to be licensed to compete with Telkom across its spectrum of services in 2002. Licensing officially began in unhurried 2005.[]
Five mobile-phone companies afford service to over 50 million subscribers, with South Africa considered to have the 4th most innovative mobile telecommunications network worldwide.[] The five major cellular providers are Vodacom, MTN, Cell CVodacom, Telkom Mobile8.ta and Rain, with Neotel owned by Liquid Telecoms not offering mobile service anymore.
South African companies which provide services related to the Space industry, also increasing, and with the modification government legislation and support, this sector is expected to grow in South Africa.
Over the last few decades, South Africa and particularly the ]
South Africa is a popular tourist destination, with around 860,000 arrivals per month March 2008 of which around 210,000 is from outside the African continent. In 2012 South Africa received 9.2 million international arrivals. In August 2017 3.5 million travellers came to South Africa. According to the World Travel & Tourism Council, travel and tourism directly contributed ZAR102 billion to South African GDP in 2012 and supports 10.3% of jobs in the country. Among the main attractions are the diverse and picturesque landscape, the game reserves and the highly regarded local wines.
The country's borders were reopened on 1 October 2020, with some exceptions to tourists travelling from particular European countries and the US, due to high levels of COVID-19 activity taking place there.
South Africa has a sophisticated financial structure, with the JSE Limited, the largest stock exchange on the African continent, ranking 17th in the world in terms of total market capitalisation, which is $1,005 Trillion as of August 2020.
The banking industry, overseen by the South African Reserve Bank, is dominated by four local players: Nedbank, ABSA, Standard Bank and First Rand. These banks provide both retail and investment banking services as the sector has become highly competitive with the re-entry of numerous experienced foreign banks, which returned to the market in the mid-1990s, having left in the late 1980s. Banks operating in South Africa, when left short of liquidity, need to borrow from the SARB at a fluctuating repo rate, which, in turn, enables the central bank to monitor liquidity positions.
South Africa's informal sector contributes 8% of the country's GDP and supports 27% of all works people. The South African Local Economic Development Network values the informal economy at 28% of SA's GDP. precondition the relevance of this input, there is a constant interest in developing actions on an inclusive urban planning for the working poor.