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South Africa – Important Facts

South Africa is a country located at the southern tip of the African continent. It also includes a small, sub-Atlantic archipelago of the Prince Edward Islands. Neighboring countries include Botswana, Lesotho, Mozambique, Namibia, Swaziland, and Zimbabwe. The geography of South Africa is vast scrubland in the interior, the Namib Desert in the northwest, and tropics in the southeast. The government system is a republic; the chief of state and head of government is the president. South Africa has a mixed economy in which there is a variety of private freedom, combined with centralized economic planning and government regulation. South Africa is a member of the Southern African Development Community (SADC).

Economic growth has decelerated in recent years, slowing to just 1.5% in 2014. Unemployment, poverty, and inequality – among the highest in the world – remain a challenge. Official unemployment is roughly 25% of the workforce, and runs significantly higher among black youth. Even though the country’s modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability. Load shedding and resulting rolling blackouts gripped many parts of South Africa in late 2014 and early 2015 because of electricity supply constraints due to technical problems at some generation units, unavoidable planned maintenance, and an accident at a power station in Mpumalanga province. The rolling blackouts were the worst the country faced since 2008. Construction delays at two additional plants, however, mean South Africa will continue to operate on a razor thin margin; economists judge that growth cannot exceed 3% until electrical supply problems are resolved.

South Africa’s economic policy has focused on controlling inflation; however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness, and frequent work stoppages due to strike action. The current government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job growth.

Important Details

  • Country ISO3 : ZAF
  • Country Code : 710
  • Income Group : Upper middle income
  • Lending Category : IBRD
  • Region : Sub-Saharan Africa
  • Currency Unit: South African rand
  • WTO Member : Yes
  • Trade organisations : WTO, G-20, SACU and others
  • world rank : 80
  • Regional Ranking : 7th in Sub-Saharan Africa