Toggle Offcanvas
...
 
Business images of South Africa

Economy of South Africa

The economy of South Africa is a mixed economy, emerging market, and upper-middle-income economy, one of only eight such countries in Africa. The economy is the most industrialized, technologically advanced, and diversified economy in Africa. In 2019, the financial industry contributed US$41.4 billion to South Africa's GDP. In 2021, South Africa-based financial institutions managed more than US$1.41 trillion in assets. The total market capitalization of the Johannesburg Stock Exchange is US$1.28 trillion as of October 2021. The state-owned enterprises of South Africa 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. The nation is among the G20, and is the only African country that is a permanent member of the group.

Top Sectors in South Africa

Natural resources in South Africa

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 behind the history and development of Africa's most advanced economy. 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%. It is 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.

Agriculture and food processing in South Africa

In 2018, South Africa produced 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). According to FAOSTAT, South Africa is one of world's largest producers of: chicory roots (4th); grapefruit (4th); cereals (5th); green maize and maize (7th); castor oil seed (9th); pears (9th); sisal (10th); fibre crops (10th). 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. 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.

Manufacturing in South Africa

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. BMW, Ford, Volkswagen, Daimler-Chrysler, General Motors, Nissan and Toyota all have production plants in South Africa. Large component manufacturers with bases in the country are Arvin Exhaust, Bloxwitch, Corning and Senior Flexonics. There are also about 200 automotive component manufacturers in South Africa, and more than 150 others that supply the industry on a non-exclusive basis.

Telecommunications in South Africa

The domestic telecommunications infrastructure provides modern and efficient service to urban and rural areas. This includes cellular and internet services from 5G to Gigabit Broadband. Five mobile-phone companies provide service to over 50 million subscribers, with South Africa considered to have the 4th most advanced mobile telecommunications network worldwide. The five major cellular providers are Vodacom, MTN, Cell C(Vodacom), Telkom Mobile(8.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 correct government legislation and support, this sector is expected to grow in South Africa.

Tourism in South Africa

South Africa is a popular tourist destination. 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.


South Africa - Key Economic Indicators

Exports & Imports

South Africa's economy relies heavily on exports, particularly in the mining sector. Precious metals and base metals are leading exports, with agricultural goods and military equipment also playing a significant role. Major imports include chemicals, chemical products, and motor vehicles.

Balance of Trade

South Africa's trade data fluctuates, and recent reports suggest a decline. The World Bank (World Bank) indicates South Africa's trade surplus might have narrowed in 2023 due to a combination of factors, including rising import costs and slowing global demand.

Infrastructure Development

Despite challenges, South Africa is committed to infrastructure development. The total road network exceeds 290,000 kilometers, with ongoing investments in national roads and key freight corridors.

Fiscal Policy

South Africa's fiscal policy aims to achieve sustainable growth while managing a high public debt burden. The government spends on social programs, infrastructure development, and stimulating economic activity. However, recent years have seen government attempts to control spending and broaden the tax base.

Monetary Policy

The South African Reserve Bank (SARB) is responsible for maintaining price stability through interest rate adjustments. In recent times, the SARB has raised interest rates to combat inflation, which can put pressure on economic growth.

Trade Agreements

South Africa participates in several trade agreements to expand market access for its exports. These include membership in the African Continental Free Trade Area (AfCFTA) and regional trade agreements with the Southern African Development Community (SADC).

Tax system

Capital Gains Tax: A capital gains tax applies to profits from the sale of certain assets, including stocks and real estate. The current rate is 40% for individuals in the top tax bracket. However, exemptions and exclusions exist for some assets or holding periods.
Corporate Tax Rate: South Africa boasts a relatively flat corporate tax rate of 28% on taxable income for most companies. However, small businesses may qualify for a lower tax rate.
Sales Tax (Value Added Tax - VAT): A Value Added Tax (VAT) system is in place with a standard rate of 14%. This applies to most goods and services purchased in South Africa. A zero-VAT rate applies to basic necessities like bread and milk.
Property Tax: Property tax rates in South Africa vary depending on the property type, location, and value. Rates are generally low for residential properties, typically ranging from 0.6% to 1.1% of the municipal valuation. Commercial properties may have slightly higher rates.
Payroll Tax (Pay As You Earn - PAYE): South Africa has a mandatory social security system funded by contributions from both employers and employees. The total contribution rate for PAYE, which includes income tax and social security, can vary depending on income level. As of May 2024, the rate for employees ranges from 18% to 40%, with employers contributing an additional 21%.
Tax Deductions and Credits: South Africa offers various tax deductions and credits to incentivize specific activities or provide relief for certain taxpayers. These can include deductions for medical expenses, retirement contributions, and travel expenses for business purposes.
Tax Compliance: Tax compliance efforts in South Africa have been improving in recent years, with the SARS implementing stricter regulations and digitalization initiatives. However, challenges remain, and a black market persists in some sectors.
Tax Burden: The overall tax burden in South Africa can vary depending on the taxpayer type and income level. Here's a general breakdown: (i) Individuals: The progressive income tax system means higher earners pay a larger share of their income in taxes. The top marginal tax rate for individuals is currently 45%. The combination of income tax, PAYE contributions, and possible property taxes can result in a moderate to high tax burden for high-income earners. (ii) Businesses: The flat corporate tax rate can be attractive, but the VAT and PAYE contributions add to the overall tax burden for businesses.

3648 Live Notices for South Africa ....

Showing 1 to 20

Appointment Of A Service Provider For Development And Implementation Of Iso 31001 For Kruger National Park For The Period Of Three (3) Years.
country South Africa
posting date29 Mar 2025
deadline22 Apr 2025
Appointment Of A Service Provider For Development And Implementation Of Iso 45001 And 14001 For Kruger National Park For The Period Of Three (3) Years.
country South Africa
posting date29 Mar 2025
deadline22 Apr 2025
For The Supply And Delivery Of Roller Door Slats At Transnet Engineering, Germiston For A Once Off Period
country South Africa
posting date29 Mar 2025
deadline07 Apr 2025
For Road Pavement Layers Under Contract Sanral C.002-048-2024/1R For The Relocation Of St Andrews Primary School. Subcontract No. C.002-048-2024/1R-Wp7
country South Africa
posting date29 Mar 2025
deadline13 Apr 2025
For The Relocation Of St Andrews Primary School Subcontract No. C.002-048-2024/1R-Wp6
country South Africa
posting date29 Mar 2025
deadline13 Apr 2025
Sub-Contract For Site Materials Laboratory For The Upgrade Of National Route 1 Section 16 From Scottland (Km 55.7) To Winburg South (Km 78.0) Contract Sanral N.001-160-2018/1C-Sl
country South Africa
posting date29 Mar 2025
deadline13 Apr 2025
Periodic Maintenance Of N11 Section 1 Between Bergville I/C Km 0.0 Ladysmith South (16.14 Nra 2024/1351
country South Africa
posting date29 Mar 2025
deadline13 Apr 2025
Construction Of Pedestrain Facilities On National Route 2, Section 22X From Mthusi (Km0.80) To Murchison (Km18.64) Nra 2024/1392
country South Africa
posting date29 Mar 2025
deadline13 Apr 2025
Sub-Contract For Site Materials Laboratory For The Improvement Of National Route N2 Section 34 From Piet Retief (Km 0) To Verzameling (Km 30) Contract Sanral N.002-340-2015/1C-Sl
country South Africa
posting date29 Mar 2025
deadline13 Apr 2025
Request For Bid: Appointment Of Service Provider For The Provision Of Communications, Public Relations, And Media Relations For Toll And Non-Toll Network For A Period Of Five (5) Years Nra 2024/1413
country South Africa
posting date29 Mar 2025
deadline13 Apr 2025
Sub-Contract For Site Materials Laboratory For The Improvement Of National Route N11 Section 9 Between Hendrina Power Station (Km 18.5) And N4 Interchange (Km 41.97) Contract Sanral N.011-090-2016/1C-Sl
country South Africa
posting date29 Mar 2025
deadline13 Apr 2025
Crosby Cleaning Service
country South Africa
posting date29 Mar 2025
deadline07 Apr 2025
For The Supply And Delivery Of Roller Door Slats At Transnet Engineering, Germiston For A Once Off Period
country South Africa
posting date29 Mar 2025
deadline07 Apr 2025
Provision Of Banking Services For A Period Of Five (5) Years.
country South Africa
posting date29 Mar 2025
deadline30 May 2025
Request For Quotations: Medical Supplies
country South Africa
posting date29 Mar 2025
deadline31 Mar 2025
PLACEMENT/ OUTRIGHT PURCHASE OF TRANSMISSION ELECTRON MICROSCOPE INCLUDING A FIVE (05) YEAR’S SERVICE AND MAINTENANCE PLAN FOR GROOTE SCHUUR ACADEMIC HOSPITAL ANATOMICAL PATHOLOGY LABORATORY
country South Africa
posting date29 Mar 2025
deadline12 Apr 2025
SUPPLY AND INSTALL AIR CONDITIONERS TO MAIN BUILDING SAVP AT NHLS SANDRINGHAM
country South Africa
posting date29 Mar 2025
deadline12 Apr 2025
SUPPLY AND DELIVERY OF PRESS DISCHARGE PUMP
country South Africa
posting date29 Mar 2025
deadline06 Apr 2025
Supply and delivery of Safety Equipment (Cricket hat,Safety goggles and Sunscreen)
country South Africa
posting date29 Mar 2025
deadline05 Apr 2025
REWIND OF PUMPS WITHIN THE GREATER KNYSNA
country South Africa
posting date29 Mar 2025
deadline05 Apr 2025

1