International Market Development

International market development | Comprehensive analysis of South Africa's economy and market conditions

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Author : Bozhou Marine
Update time : 2021-01-13 13:26:54


In this article, we mainly introduce the basic situation of the South African market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, infrastructure, GDP, foreign exchange reserves, employment, prices, taxes, etc.
 
 

  Introduction
 
 
The Republic of South Africa (English: The Republic of South Africa), referred to as "South Africa". Located in the southern hemisphere, it is known as the "Rainbow Country". It is located at the southernmost tip of the African continent. It has a land area of ​​1219090 square kilometers. It is surrounded by the Indian Ocean and the Atlantic Ocean on three sides, and is connected to Namibia, Botswana, Lesotho, and Zimbabwe. , Mozambique and Swaziland border. To the east is across the Indian Ocean and Australia, and to the west is across the Atlantic Ocean from Brazil and Argentina.
 
South Africa is the second largest economy in Africa. Its citizens have a higher standard of living and its economy is relatively stable compared to other African countries. South Africa's finance, law, communications, energy, and transportation industries are relatively developed, with complete hardware infrastructure and stock trading markets, and the production of gold and diamonds ranks first in the world. Deep mine mining and other technologies are in the leading position in the world. South Africa has been identified as a medium power in international affairs and maintains significant regional influence.
 
 

  Capital
 
South Africa has three capitals: Pretoria (Pretoria) is the administrative capital with a population of about 2.92 million; Cape Town is the legislative capital with a population of about 3.74 million; Bloemfontein is the judicial capital. The population is about 750,000 (data from the 2011 South African Census).
 
 

  Main City
 
1. Johannesburg
 
The largest city in South Africa and the second largest city in Africa after Cairo, the capital of Gauteng Province, is known as the "Golden City". A place where blacks gather, so it is the most chaotic city in Africa. It is 1,760 meters above sea level and has a population of 4 million. It was built in 1886. It is the most important industrial and mining center in South Africa, with more than 60 gold mines in the vicinity of 240 kilometers. Industrial output value is decisive, including large-scale mining machinery, diamond cutting, chemistry, medicine, textiles, electrical machinery, automobile assembly, rubber and other industries. Finance and commerce are developed. The South African Stock Exchange, the headquarters of major companies and banks are mostly located here, and it is the financial center of Southern Africa. Among them, the Shanteng area has developed the fastest and has become a new financial and commercial district. Johannesburg is a railway and road hub in South Africa. More than 30 countries have consulates general, consulates or honorary consulates here.



Johannesburg - Photo | Google

2. East Rand
 
After the local government election in December 2000, a new metropolis was established, and in April 2001 it was renamed Ekurhuleni (Ekurhuleni). It is bordered by Johannesburg to the west and Petuo to the north. It covers an area of ​​over 2,000 square kilometers and has a population of 2 million. There are 11 districts under its jurisdiction, mostly well-known industrial districts. Historically, it was an important mining center. The world-famous gold veins in the Johannesburg area extend from east to west to the city center. The dolomite deposits are abundant. The city has complete transportation facilities and developed air and land transportation. It has the largest, most modern and busiest Johannesburg International Airport in Southern Africa.
 

3. Durban
 
It is located on the east coast of Kwa/Na Province, bordering the Gulf of Natal in the Indian Ocean. It covers an area of ​​400 square kilometers and has a population of 3.8 million. Blacks account for 50% and Indians 30%. It was built in 1824. South Africa's shipbuilding center and largest port is also the largest port in Africa, and the world's seaport ranks 14th. It handles 1.3 million containers annually, with a total handling capacity of 30 million tons. Industries such as sugar, oil refining, automobile assembly, machinery, chemicals, textiles, and food are also relatively developed. The city's infrastructure is complete and many large-scale international conferences have been held. More than 20 countries have set up consulates, consulates or honorary consulates here. Become a sister city with Guangzhou, China. Durban, together with the other three capitals, was the capital of the original British colony. Later, Durban gave up the capital in order to obtain 2/3 of South Africa's import rights.
 

4. Port Elizabeth
 
Located in Algar Bay in the Eastern Cape. After the local government election in December 2000, it was renamed Nelson Mandela. The population is 1 million. It is the center of South Africa's automobile industry. Ford, GM, Volkswagen and many other international automobile companies have assembly plants here, known as "Detroit of South Africa". In addition, there are rubber, textile, electronics, machinery, building materials, pharmaceuticals, food, wool and mohair industries. It is one of South Africa's transportation hubs, with good airport and port facilities. With beautiful scenery and developed tourism, it is known as the "Friendly City".
 

5. Pretoria
 
The administrative capital, the seat of the central government agency. The population is about 2.4 million (calculated based on the population of the entire Tswana metropolitan area), mostly white. It was founded in 1855 and the capital was established in 1910. It is 1,378 meters above sea level, with green grass and blooming flowers. The city flower is Jacaranda (Jacaranda). It is South Africa's ferrous metallurgical industry center and highway and railway hub, mainly including iron and steel, machinery, chemical, textile, fertilizer, paper, food and other industries, as well as diamond, platinum, gold, chromium, coal and other mining industries. It is also the most important cultural, educational and scientific research center in South Africa.
 

6. Cape Town
 
The legislative capital, the seat of the National Assembly. It is also the capital of the Western Cape Province. The population is about 3 million, mostly colored people. Facing the Atlantic Ocean, Table Bay, backed by Table Mountain, with beautiful scenery, it is a world-famous tourist city. Founded in 1652, it was the first stronghold of European colonists in southern Africa, and the base for the expansion of Dutch and British colonists to inland Africa. In order to commemorate their ancestors' first settlement here, the Afrikaans called it "Mother City". There are large-scale textile, brewing, tobacco, oil refining, chemical, leather, paper, shipbuilding and other industries. It is located at the intersection of important international waterways, with advanced natural harbor facilities and the largest dry dock in the southern hemisphere. More than 30 countries have consular offices here.



Cape Town - Photo | Google

7. Bloemfontein
 
The judicial capital and the seat of the Supreme Court of Appeal. It is also the provincial capital of the Free State. The population is 460,000. 1,390 meters above sea level. Become a sister city with Nanjing, China.
 
 

  Jet Lag
 
China is located in the East Eight District, while South Africa is located in the East Second District. The time difference between China and South Africa is 6 hours, which is 6 hours slower than China.
 
 

  Population and Ethnicity
 
57.78 million (2018). It is divided into four major races: blacks, colored people, whites and Asians, accounting for 80.7%, 8.8%, 8.0% and 2.5% of the total population respectively. The blacks mainly consist of nine tribes: Zulu, Xhosa, Swazi, Tswana, North Soto, South Soto, Tsunga, Venda, and Ndebele. They mainly use Bantu language. Whites are mainly Afrikaans (mainly Dutch, a white African nation formed by the integration of French and German immigrants) and whites of British descent.
 
 

​​​​​​​  Language
 
The languages ​​are Afrikaans and English. People of color are mainly mixed races of whites and local blacks, and they mainly speak Afrikaans. Asians are mainly Indians (the majority) and Chinese. There are 11 official languages, English and Afrikaans are the common languages.
 

​​​​​​​  Main Holiday
 
New Year (January 1st);
Human Rights Day (March 21st);
Good Friday (the Friday before Easter);
Easter (every year from the first Friday after the vernal equinox to the next Monday);
Family Day (Monday after Easter);
Freedom Day (National Day, April 27t);
Labor Day (May 1st);
Youth Day (June 16t);
Women's Day (August 9th);
Traditional Festival (September 24th);
Settlement Day (December 16th);
Friendship Day (December 26th).
 


South African Celebration - Photo | Google
 
​​​​​​​  Natural Resources
 
Rich in mineral resources, it is one of the five largest mineral resource countries in the world. There are more than 70 kinds of minerals with proven reserves and exploited. The reserves of platinum group metals, fluorspar, and chromium rank first in the world, gold, vanadium, manganese, and zirconium rank second, titanium rank fourth, phosphate minerals, uranium, lead, and antimony rank fifth, coal, Zinc ranks eighth and copper ranks ninth. According to statistics from South Africa’s Ministry of Mines, the proven mineral reserves in 2011: 6,000 tons of gold (11.8% of the world’s total reserves, the same below), 63,000 tons of platinum group metals (95.5%), and 150 million tons of manganese (23.8%) ), 3.64 million tons (26%) of vanadium, 14 million tons of vermiculite, 3.1 billion tons (85%) of chromium, 295,000 tons (5.5%) of uranium, 30.156 billion tons (3.5%) of coal, 71.3 million tons of titanium (10.3 %), 14 million tons of zirconium (27%), 41 million tons of fluorite (17.1%), 1.5 billion tons of phosphate (2.1%), 21,000 tons of antimony (1.2%), 300,000 tons of lead (2.1%), Zinc is 14 million tons (3.3%) and copper is 11 million tons (1.6%).
 
 

​​​​​​​  Competitive Industries

 
Industry
 
Manufacturing, construction, energy and mining are the four major sectors of South African industry. The manufacturing category is complete and the technology is advanced. The main products are steel, metal products, chemicals, transportation equipment, machine manufacturing, food processing, textiles, clothing, etc. The steel industry is the backbone of South Africa's manufacturing industry, with six major steel joint companies and more than 130 steel companies. In recent years, industries that lack competitiveness such as textiles and clothing have shrunk, and emerging export industries such as automobile manufacturing have developed rapidly.
 
The energy industry has a solid foundation and relatively advanced technology. The electric power industry is relatively developed, with power generation accounting for 2/3 of the whole of Africa, of which about 92% is thermal power generation. The state-owned South African Electric Power Company (ESKOM) is the world's top ten electricity production and eleventh largest electricity sales company. It has the world's largest dry-cooling power station and supplies 95% of South Africa's electricity consumption. In recent years, due to lagging power production and management, the nationwide power shortage has been severe. Near Cape Town is the only nuclear power plant on the African continent, the Koeberg Nuclear Power Plant, with a generating capacity of 1.8 million kilowatts. In addition, the level of commercialization of coal-synthetic fuel and natural gas-synthetic fuel technology of South Africa's Sasol (SASOL) company ranks among the world's leading companies, and its liquid fuel oil accounts for about 1/4 of the total fuel supply in South Africa.
 
The mining industry has a long history, with a complete modern mining system and advanced mining and smelting technology, and is one of the pillars of the South African economy. The output value in 2018 accounted for about 7.3% of the GDP. Mineral products are an important part of exports. In 2018, the export value of mineral products accounted for about 25% of the total export value. South Africa is an important producer and exporter of gold, platinum group metals and chromium in the world. Diamond production accounts for about 9% of the world. South Africa De Beers (De Beers) is the world’s largest diamond production and sales company with total assets of 20 billion US dollars. Its turnover once accounted for 90% of the world’s diamond supply market and currently controls 60% of the world’s rough diamond trade. %.
 

Agriculture, Animal Husbandry and Fishery
 
Agriculture is relatively developed, arable land accounts for about 12% of the land area, but the high-yield land suitable for cultivation only accounts for 22%. The employment of agriculture, forestry, and fishery accounts for about 7% of the population, and their export income accounts for 15% of non-mining export income. Agricultural production is obviously affected by climate change. Corn is the most important food crop. All kinds of canned food, tobacco, wine, coffee and beverages sell well overseas. It is rich in flowers, fruits and wines.
 
Animal husbandry is relatively developed, mainly concentrated in two-thirds of the western region. Livestock types mainly include cattle, sheep, goats, pigs, etc., and poultry mainly include ostriches and broilers. The main products are poultry eggs, beef, fresh milk, dairy products, mutton, pork, sheep wool, etc. 85% of the meat needed is self-sufficient, and 15% is imported from neighboring countries such as Namibia, Botswana, Swaziland, Australia, New Zealand and some European countries. Sheep wool production is considerable and it is the world's fourth largest exporter of sheep wool.
 
The production of aquaculture accounts for 5% of Africa. The South African commercial fishing fleet has more than 500 vessels of various types. There are approximately 28,000 people in the country engaged in marine fishing. The main catch species are mussels, trout, oysters and cape hake. The annual catch is about 580,000 tons, with an output value of nearly R2 billion. In addition, the annual output value of the South African beekeeping industry is about 20 million rand.
 

Tourism Industry
 
Tourism is currently one of the fastest-growing industries in South Africa. In 2018, its output value accounted for about 9% of its GDP, with 1.4 million employees. It has rich tourism resources and complete facilities. There are more than 700 big hotels, more than 2,800 hotels, inns and more than 10,000 restaurants. Tourist spots are mainly concentrated in the northeast and east and south coastal areas. Ecotourism and folklore tourism are the two main growth points of South Africa's tourism industry. From June 11 to July 11, 2010, the final round of the 19th FIFA World Cup was held in South Africa, which strongly boosted the tourism industry in South Africa. In 2019, 15.83 million foreign tourists visited South Africa.



Wild animals in South Africa - Photo | Google
 
 

​​​​​​​  Infrastructure
 
There is the most complete transportation system in Africa, which plays an important role in the economy of this country and neighboring countries. Mainly by railway and highway, air transportation has developed rapidly. In recent years, the construction of transportation infrastructure in towns and economic development zones has been strengthened.
 

Railway
 
The total length is about 34,100 kilometers, of which 18,200 kilometers are electrified railways, with more than 2,000 electric locomotives. The annual cargo volume is approximately 175 million tons. The luxury blue bus from Pretoria to Cape Town enjoys an international reputation. The high-speed railway connecting the administrative capital of Pretoria and the Oliver Tambo International Airport in Johannesburg was opened to traffic in August 2011, with a total length of about 80 kilometers.
 

Highway
 
Divided into national, provincial and local levels. The total mileage (including highways and streets at all levels) is about 755,000 kilometers, of which 16,170 kilometers are national highways. The annual passenger volume is about 4.5 million.
 

Water Transport
 
The marine transportation industry is developed, and about 98% of exports are completed by sea. The main ports are Cape Town, Durban, East London, Port Elizabeth, Richards Bay, Saldanha and Mosel Bay. There are 990 merchant ships with a gross tonnage of 755,000 tons. The annual port throughput is approximately 1.2 billion tons. Durban is Africa's busiest port and the largest container distribution center, with an annual container handling capacity of 1.2 million.
 

Air Transport
 
South African Airways owns 47 various types of civil aircraft, including 3 Boeing aircraft and 44 Airbus. It is one of the largest airlines on the African continent and one of the 50 largest airlines in the world. There are about 27 civil aviation airports, 11 of which are international airports. There are more than 600 domestic flights and more than 70 international flights every week, with direct flights to some countries in Africa, Europe, Asia, the Middle East, and South America. The average annual passenger volume reaches 12 million. The main international airports are Oliver Tambo International Airport (formerly Johannesburg International Airport), Cape Town International Airport and Durban King Shaka International Airport.
 

Pipeline Transportation
 
South Africa’s pipeline transportation network has a total length of 3,000 kilometers and transports 85% of the country’s petroleum processed products.
 
 

​​​​​​​  Negative economic growth in 2019
 
In terms of economic scale, in 2019, South Africa’s nominal GDP was R5.0776.25 billion, an actual increase of 0.2% year-on-year. However, due to the large depreciation of the South African rand, its GDP was only 351.36 billion U.S. dollars when converted into U.S. dollars, a decrease of 4.5%.
 


South Africa's GDP growth rate trend chart over the years | TRADING ECONOMICS
 
South African Central Bank: South Africa's GDP is expected to be -8.0% in 2020, compared to the previous forecast of -8.2%.
 
 

​​​​​​​  Foreign exchange reserves are volatile
 
 


South Africa's foreign exchange reserves trend chart over the years | TRADING ECONOMICS
 
South Africa's foreign exchange reserves have fluctuated greatly in the past two years, and the decline in 2020 will be significant.
 
 

​​​​​​​  Long-term high unemployment rate
 
 


Unemployment rate trends in South Africa over the years | TRADING ECONOMICS
 
The overall unemployment rate in South Africa has maintained a high growth rate for a long time, reaching 26%-30% in recent years.
 
South African President Ramaphosa announced on December 8, 2020 that he had signed a performance agreement with all cabinet ministers. The goal is to reduce the unemployment rate to 20-24% and create 2 million new jobs, especially for young people. Employment opportunities created by people. Promote economic transformation to make it representative and inclusive, giving priority to women, youth and the disabled.
 
 

​​​​​​​  Prices are rising rapidly, and the inflation rate is at a record low
 
 


South Africa Consumer Price Index CPI Trend Chart | TRADING ECONOMICS
 
 


South Africa's inflation rate trend chart over the years | TRADING ECONOMICS
 
In 2020, South Africa's inflation rate hit a record low, falling below 2%.
 
 

​​​​​​​  Corporate income tax rate 28%
 
 


South Africa's corporate income tax trends over the years | TRADING ECONOMICS
 
In 2020, the South African corporate income tax rate is 28%.
 
 

​​​​​​​  Personal income tax rate 45%
 
 

​​​​​​​
South Africa's corporate income tax trends over the years | TRADING ECONOMICS
 
In 2020, South Africa's personal income tax rate is 45%.



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