Economy

South Africa is a modern industrial country. It has a developing economy. It is overly dependent on commodity exports. The economy depended on mineral and agricultural products until the mid 20th century. The manufacturing sector developed in the second half of the century. This industry helped give whites a standard of living similar to western Europe. The majority of people in South Africa suffer poverty patterns found in developing countries, like high unemployment and lack of job skills. In the 1980’s the economy was hindered by economic sanctions. They were imposed by countries to protest apartheid. Money flowed out of the economy then. The economy benefited in the early 1990’s because of the end to sanctions, increased corporate investment and trade concessions. There was a rebound in agricultural production in the 1990’s because the drought wasn’t a bad then. The annual national budget in the mid 1990’s included revenues of $26.3 billion and expenditures of $34 billion.

Agriculture

The limited rainfall and infertile soil restrict the areas for crop raising, in South Africa. 9/10 of farmland is for livestock, particularly sheep, goats, cattle, hogs and poultry. South Africa produces almost all the crops needed for food. Whites usually have large, modern farms. Non-whites usually have small farms and use traditional, marginally productive methods. The annual agricultural output in order is sugarcane, grapes, maize, potatoes, wheat, apples and oranges. Wine making is an important part of the agriculture there. Most vineyards lie within 150 miles of Cape Town. The wool produced in South Africa is of a high quality. At the end of WWII, South Africa was the second largest producer of fine wool in the world and the fourth largest wool exporting country. Blacks regard livestock as a way to measure wealth, so they own large numbers of cattle.

Forestry & Fishing

The timber production comes mainly from pine, eucalyptus and wattle. They are planted under a forestation program of the government. The bark from the wattle tree is used in tanning. It is an important export. Coastal fishing is an important industry. Most of the catch is processed into fish meal. The fish caught are anchovy, Cape hake, South African pilchard, Cape horse, mackerel and Whitehead’s round herring. The coastline provides access to the Atlantic and Indian Oceans. Therefore the nation's waters are rich souces of marine life. The Benguela Current carries fish northward and cuts through South Africa’s western seas. South Africa harvests 4/5 of its annual catch from this coastal movement. Walvis Bay is one of the nation’s principal fishing areas.

Mining

The mining industry has been an important sector in the economy since the 19th century. Large scale gold and diamond production began then. In the early 90’s, mining was 2/5 of South Africa’s export revenue. South Africa is the world’s leading production of gold. The annual extraction is more than 1/4 of the world total. South Africa is the fifth largest producer of diamonds. South Africa produces nearly 10% of the world’s quality gemstones. Almost every commodity needed for industry is located in South Africa.

Manufacturing

Before World War II, manufacturing wasn’t as important as mining or agriculture. During the war, and after it, an expansion in manufacturing took place. In the early 90’s, manufacturing contributed to about 25% of the gross domestic product. Most of the capital for this expansion, was from private sources (domestic and foreign). The government also played a key role. Cape Town, Joburg, Durban and Port Elizabeth are leading manufacturing centres.

Energy

Almost all of South Africa’s electricity is produced in thermal facilities. Most of them burn coal. The rest of the electricity is from nuclear or hydroelectric facilities. In the early 90’s, South Africa installed an electricity generating capacity about 46 million kilowatts.

Currency & Banking

The basic unit of currency is the rand. It is divided into 100 cents. The South Africa Reserve Bank is the only bank of issue. The country has many commercial, savings and investment banks. The stock exchange is in Joburg.

Foreign Trade

In the early 90’s, yearly exports made more money, then imports cost. This was mainly because of the revenue of foreign sales of gold. The annual exports still make more money then the imports cost. Gold accounts for 25% of the annual value of exports. Some exports that are non-industrial are diamonds, metals and metal products, mineral products, vegetables, prepared foodstuffs and textiles. Some imports are machinery, transportation equipment, chemical products, textiles, plastics, metals and metal products. The leading trading partners for exports are Switzerland, USA, Great Britain, Japan, Germany, Belgium, Taiwan and the Netherlands. Imports are mainly from Germany, USA, Japan, Great Britain, France, Italy and Taiwan.

Transportation

In the early 90’s, there were 21 303kms of railway in South Africa and 188 300kms of roads. 30% of the roads are paved. There are 3.5 million cars in use. The major airline is South African Airways. There are other airlines too. The busiest airport is in Joburg. The main seaports are Cape Town, Mossel Bay, Port Elizabeth, East London, Durban, Saldanha and Richard’s Bay. The inland waterways aren’t commercially important.

Communications

The Independent Broadcasting Authority supervises radio and television broadcasting. It was established in 1993 to free system from political control. The South African Broadcasting Corporation provides radio services in eleven languages. It is funded by the revenue from licences and advertising. It operates three TV channels with seven languages. The TV broadcasting began in 1976. There are about twenty daily newspapers in South Africa, mostly in English.

Labor

Some labor organizations are the Congress of South African Trade Unions, National Council of Trade Unions, South African Confederation of Labor and the Confederation of South African Trade Unions. In the late 70’s, blacks were given more opportunities to form unions and some white unions accepted non-white members. Many blacks work on a temporary basis in factories and mines. Some workers even come from nearby countries. There was 45% unemployment with blacks in the early 90’s.