What Happened to Africa's Economy - Part 5

What Happened to Africa's Economy - Part 5

South Africa is located in the south-eastern part of Africa with a total population of over 58 million people. Coming after Nigeria, the country is known to have the second-largest economy in Africa. South Africa is also the most advanced and the most industrialised nation in Africa. The country is also notable for its diversity in economic operation.

As good as that may sound South Africa's economic performance is also rated way below the expected performance. The country is known to be endowed with several mineral resources. The land is rich in solid minerals like golds, metals, and chromium. Not only this, the country has the necessary amenities needed to compete with other industrialized nations in Metalworking, IT, Agriculture, and Chemical/Fertilizer production.

The Wikipedia infographics about South Africa is also worthy of analysing. The nominal GDP of South Africa as of 2020 is estimated to be $283 billion, meanwhile, the inflation rate is estimated to be 3.3% of the economy. The percentage of her population below the poverty line is 55.5%.

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Key players in the South-Africa economy

The country, just like every other country in Africa, is blessed with good farming land and solid resources. However, these resources are underutilised and untapped. Hence, the country is categorised as a developing country of the world.

South Africa has a comparative advantage in the world's major industries. However, the lack of good economic policies has been her major setback. The following are the key industry contributing to South Africans’ economy;

Mining

Mining is the major driving force of the South-Africa economy. Ever since the discovery of diamonds in the country. There has been consistent exploitation of solid minerals including golds and metals. However, the over-dependence on this mining resulted in a fall in the GDP in the year 2011.

Agriculture

South Africa has the needed capacity to become a world leading country in the production of some agricultural products. The country is notable in the production of products such as sugarcane, pear, orange, grape, wheat, onion, and apple. However, the agricultural industry only accounts for 5% of the nation's formal employment. This is a gross underutilisation of its agricultural potentials.

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Factors Responsible for Bad Economic Growth in South Africa

No doubt, South Africa is an emerging economic giant in Africa, but relative to its potential it is performing poorly. Hence, the need to evaluate the factors responsible for this low performance.
The major factors are;

Poor Standard of Education

Africa generally has been plagued with a poor educational system. South Africa is not exceptional in this. This has resulted in a shortage of skilled indigenous manpower in every sector of the country. This has been a major setback in competition with countries like India and China.

High Unemployment Rate

South Africa consistently witnesses a rise in its unemployment rate. Job creation is drastically low in the country as well. This has been a major factor militating against the nation's economy.

Weak currency

The South African Rand has a very low currency power. The currency is now trading at R14.6 to a dollar of the United States. And the currency constantly loses its value due to weak business and consumer's confidence.

Political mismanagement

The South-Africa political mismanagement is another major setback in the nation's economy. And this is because of constant ill-conceived economic policies. Major state-owned enterprises are also performing very low compared to expectations.

Conclusion

South Africa is one of the emerging countries to watchout for in Africa. If well managed the country has a competitive advantage that put it in a strategic position to compete with other industrialized countries. However, factors like unemployment, bad policies and under-skilled personnel are disadvantages to her economy. Let us know what you think about this second Giant of Africa. We will be looking at Uganda in our next article.

References

Wikipedia: Economy of South-Africa
Future direction: Economic challenges in South Africa.

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Comments

mank 10 Apr '21
What a write up
emmanuel 10 Apr '21
One major way to tackle most of these issues associated with Africa is to first improve our educational standard. With quality information and adequate learning we would truly know what is false from what is right and we would stop exploiting ourselves and see we grow Together.
chosenboy 09 Apr '21
Amen to that prayer
jurbity 09 Apr '21
Wow. Bravo
bamanga 09 Apr '21
The best way to move out of poverty.
ayakaterver01 09 Apr '21
Crestway all the way
97242835gc 09 Apr '21
Africa will grow someday
oluwafemi 09 Apr '21
Nice story
ishola1706 09 Apr '21
God bless CRESTWAY
adebiyi 09 Apr '21
Africa shall be great One day
gs49 09 Apr '21
This is educating
ayakaterver01 09 Apr '21
I rep crestway trade
sundex 09 Apr '21
Nice and interesting
rosysexy19 09 Apr '21
Giant of Africa shld be given to the country who truly deserves it
saunobele 09 Apr '21
Well educated
mamahilda 09 Apr '21
Nice post. ????
bolurepublic 09 Apr '21
May God help Africa
necessity 09 Apr '21
Very educative
smeg 09 Apr '21
It's well
samsono 09 Apr '21
Frankly speaking if only we had what was needed, we wouldn't lack the necessary... If only selfish interest of the political seats could be ruled out Very nice article, looking forward to the next
aliwa 09 Apr '21
Long Live Crest
mkumz01 09 Apr '21
CrestWasy Trade is doing well. We move.
olaknight 09 Apr '21
All Is well
dareakins 09 Apr '21
Educative! Nigeria will rise again
vychthur 09 Apr '21
Earn and learn..... crestwaytrade
parckadity 09 Apr '21
Heart team crestway
adebayo 09 Apr '21
so enlightening
nwokedi 09 Apr '21
Wow!!! We hope for a change someday!!
maceke 09 Apr '21
But South Africa is far more better than our country Nigeria. We still rely on their products.
amodumujeeb 09 Apr '21
interesting!
bimak 09 Apr '21
Intriguing!
dominion 09 Apr '21
Second Giant you say?
evedyne 09 Apr '21
Hmm really educative it depends on the people, from what I heard about them, they are lazy minus d bad economy
julies 09 Apr '21
Interesting
mank 09 Apr '21
I can see a turn around era for nigerians through crestway
jwealth 09 Apr '21
Ride on Crestway
omolejerome 09 Apr '21
South Africa is indeed to watch out for.
fagbohun 09 Apr '21
Good write up.
idowu_omohu0001 09 Apr '21
Interesting
umoh 09 Apr '21
I love crestway trade
adline 09 Apr '21
We learn everyday.. thanks for this wonderful knowledge @crestway
missgenius 09 Apr '21
Interesting
jonathanchama 09 Apr '21
Africa will Rise again
valentine1413 09 Apr '21
May God help Africa.
hybeekhay 09 Apr '21
I HOPE someone ARISE to CHANGE the "NARRATIVES" Thank you CRESTWAY!!!
kenhinde 09 Apr '21
May God help Africa, only God can take charge,thank you crest way.
ruqyatu 09 Apr '21
Recommendable
nafsy 09 Apr '21
Thank you crestway
ogugua 09 Apr '21
As if Africa is cursed
oladiti 09 Apr '21
55.5% poverty line . wow
ijebs 09 Apr '21
Nigerians will wake up pretty soon..
michael95 09 Apr '21
Nice write up
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