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Importing a standard container of goods into South Africa requires:
South Africa is an economic powerhouse within Africa. It is the 30th largest economy in the world by GDP and the 25th most populous country with over 54 million people. Strategically located at the tip of the African continent, South Africa is a key investment location and gateway to the rest of the continent. It has a well capitalised banking system, abundant natural resources and an established manufacturing base.
2014 | 2015 | 2016-19 | |
---|---|---|---|
GDP | 3.5 | 2.5 | 3.8 |
Export of goods and services | 5.9 | 0.1 | 5.5 |
Import of goods and services | 9.7 | 6.3 | 4.3 |
Inflation | 6.1 | 4.6 | 6.2 |
Exchange rate (per £) | 10.85 | 12.76 | 15.16 |
Population | 1.0 | 1.0 | 0.8 |
Source: Oxford Economics |
The economy continues to grow, driven largely by domestic consumption. GDP growth is expected to pick up modestly from 2.5% last year to 2.8% this year and 4% in 2014. Domestic demand will remain the key driver of growth, although at a slower pace than in 2012. The Rand has remained weak, albeit not as weak as in late March. This currency weakness may help exporters by improving price competitiveness, but there is a risk that this could be undermined by higher wage claims or by higher imported inflation, and so may not have much stimulatory effect on the economy.
More than half of South Africa’s trade is with developed countries, i.e. the EU, Nafta and Japan. Brazil, India and China doubled their exports to South Africa and also increased their share of South Africa’s imports from 8% to 14%. This development is hardly surprising considering that India and China are the fastest-growing economies in world, and have population of more than a billion each. South Africa’s trade still relies on the developed world for markets but is slowly shifting towards developing countries for sources of supply. The domination of the developed world as a supplier is being challenged by middle-income developing countries.
Strengths Strong financial sector Political stability |
Weaknesses High level of unemployment Crime |
Opportunities Growing middle class Strong infrastructure |
Threats Wages are rising faster than inflation Education |
Manufacturing
Rank | 2012 |
---|---|
1 | China |
2 | Denmark |
3 | Germany |
4 | Middle East |
5 | US |
6 | Saudi Arabia |
7 | Japan |
8 | India |
9 | Nigeria |
10 | Thailand |
South Africa is one of the most sophisticated, diverse and promising emerging markets. Strategically located at the tip of the African continent, South Africa is a key investment location, both for the market opportunities that lie within it and for the opportunity that exists to use the country as a gateway to the rest of the continent. South Africa has spent R642-billion on infrastructure development in the past three years – and plans to spend more than R827-billion over the next three years. Opportunities lie within the energy, transport, healthcare, and education sectors.
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