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A rich mix of ethnicities, cultures and languages Plentiful mineral deposits and natural resources Constitutional democracy with a three-tier system Unemployment and wealth disparity remain challenges
COUNTRY PROFILE
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COUNTRY PROFILE
The country is home to varied climatic zones, from the subtropical to the semi-arid
POPULATION & DEMOGRAPHICS: Dubbed the Rainbow Nation, South Africas population of around 50.5m is a melting pot of ethnicities, cultures and languages that reflect the countrys rich and tumultuous history. According to the 2010 census 80% of South Africans are of black African ancestry, divided among various ethnic groups and spoken languages. The constitution recognises 11 languages, including Zulu, spoken by 23.8% of the population; Xhosa (17.6%); Afrikaans (13.3%); Sepedi (9.4%); English (8.2%); Setswana (8.2%); Sesotho (7.9%) and Xitsonga (4.4%). Most non-Anglophones speak English as a second language, and all business and government matters are conducted in English. Around 80% of the population is classified as Christian, while 15% claim no religious affiliation, adhering to traditional indigenous beliefs. The remaining 5% comprise Muslims, Hindus and Jews. GEOGRAPHY & CLIMATE: South Africa lies on the southern tip of Africa, occupying 1.22m sq km with 2798 km of coastline along the Atlantic and Indian Oceans. It surrounds the Kingdom of Lesotho as a landlocked enclave and is bordered to the north by Namibia, Botswana and Zimbabwe, and to the east by Mozambique and Swaziland. South Africa is home to varied topographic and climatic zones, ranging from lush subtropics in the east to extreme desert in the farthest north-west. For the most part the climate is semi-arid, especially on the west coast and inland, making it susceptible to droughts. The west coast and inland regions have warm days and cool evenings, while along the countrys east coast a prevailing subtropical climate makes the region hot and humid during the summers but quite pleasant during the winter and autumn. NATURAL RESOURCES & ENERGY: South Africa has vast deposits of minerals and natural resources. It is the worlds fourth-largest source of gold and diamonds and sits on more than three-quarters of global platinum reserves. It also has large deposits of uranium, coal, and other metals and minerals. It is estimated that in 2010 South Africas mining industry contributed nearly 18%
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of GDP, of which 8.6% is a direct contribution. The country processes around 20m tonnes per annum of oil and consumes 23m tonnes of liquid fuel products, of which 45% is gasoline and 26% diesel. Because of the abundant supplies of cheap coal, this indigenous resource is used to generate most of its electricity and a significant proportion of its liquid fuels. Rapid economic growth and industrialisation is creating growing demand for electricity, and efforts are being undertaken to further develop the contribution of natural gas, nuclear and renewable sources to the national energy mix. ECONOMY: South Africas is considered the most advanced economy in Africa, with well-developed financial, communications, energy and transport sectors. Its stock exchange is the largest on the continent and the worlds 18th-largest, while the rand is among the most actively traded emerging market currencies. With strong mining and manufacturing export sectors and a flourishing tourism sector, the domestic economy is very much influenced by swings in global economic conditions, and there is pressure to keep the rand low. Vast natural resources and domestic growth opportunities aside, investor interest in South Africa also stems from the countrys strong financial services infrastructure, political stability and solid regulatory environment, all of which enable it to serve as an entry point and base for pan-African operations. In June 2011 South Africa was officially granted full entry into the BRIC grouping, with Brazil, Russia, India and Chinas decision to extend membership a reflection of its undeniable influence over African economic development and investment. While South Africa is an economic success story on a macro scale, development is concentrated in the prime urban centres of Johannesburg/Pretoria, Cape Town and Durban. Gauteng province, in which both Pretoria and Johannesburg are located, is the countrys economic epicentre and the location a significant portion of economic activity, including mining, industry, banking and capital markets. Gauteng contributes onethird of South Africas GDP and accounts for roughly 10% of GDP for the entire continent. CHALLENGES: According to 2011 figures South Africa had the ninth-worst Gini coefficient in the world, a measurement widely used to assess income inequality. With the fall of apartheid, the government has been faced with equipping the economy to handle the influx of new workers into an already saturated market. A large proportion of the population lives under developing world standards and nearly a quarter of South Africans are unemployed. Many people inhabit informal settlements known as townships outside major cities. Illegal immigration from elsewhere on the continent contributes to the growth of these areas. While economic empowerment and affirmative action have been applauded for contributing to the rise of an emerging black middle class, some in the business community have expressed frustration at what they perceive as restrictive labour regulations and high levels of state ownership in the wider economy. These issues are ones that the country will have to carefully address as it continues to work to remedy the wrongs of its past.