Why is South Africa Very Rich and Proud? Being a country on the African continent’s
southernmost tip, South Africa has various diverse ecosystems. Big game abounds in Kruger National
Park, an inland safari destination. Beaches, rich winelands around Stellenbosch and Paarl,
rugged cliffs at the Cape of Good Hope, forest and lagoons along the Garden Route,
and the metropolis of Cape Town, which sits beneath flat-topped Table
Mountain, are all found in the Western Cape. South Africa is abundant in a wide range of minerals.
Iron ore, platinum, manganese, chromium, copper, uranium, silver, beryllium, and titanium are among
the country’s deposits, in addition to diamonds and gold. There have been no economically
exploitable petroleum deposits discovered, but there are moderate quantities of natural gas off
the southern coast, and synthetic fuel is produced from coal at two huge plants in the Free State
and Mpumalanga provinces. Although for decades manufacturing has employed more people
and produced a bigger proportion of gross domestic product (GDP) than mining has,
the mining sector continues to form the heart of the South African economy as mining-centred
holding firms invest in other economic activity. Hey fellow subscribers, welcome to our channel. In
this video, we shall be taking you on a tour throughout South Africa
to find out the reason why the country is so rich as compared to other African countries. The
riches will be looked at based on the Economy, the manufacturing industry and several other reasons.
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The Economy of South Africa. South Africa’s economy is the continent’s
second largest, as well as the continent’s most industrialized, technologically advanced,
and diverse economy. South Africa is one of just eight countries in Africa
with an upper-middle-income economy. Following the lifting of international sanctions in 1996,
South Africa’s Gross Domestic Product (nominal) nearly tripled, reaching a high of US$416 billion
in 2011. Within two decades of the end of apartheid, foreign exchange reserves expanded from
US$3 billion to approximately US$50 billion, resulting in a diversified economy with a
growing and sizeable middle class. Although the natural resource extraction industry remains one
of the country’s largest, contributing US$13.5 billion to GDP annually, South Africa’s economy
has diversified since the end of apartheid, with a focus on services. The financial sector
contributed $41.4 billion to South Africa’s GDP in 2019. South African financial institutions managed
around US$1.41 trillion in assets in 2021. As of October 2021, the Johannesburg Stock Exchange’s
entire market capitalization was US$1.28 trillion. South Africa’s state-owned companies (SOEs) play a
vital part in the country’s economy, with the government owning a stake in roughly 700 SOEs
in a variety of industries. In 2016, inefficient government bureaucracy, tight labor restrictions,
a shortage of skilled personnel for several high-tech businesses, political instability,
and corruption were the top five hurdles to conducting business in the country. The banking
industry, on the other hand, was evaluated as a significant positive feature of the economy. The
country is a member of the G20 and the only African country in the organization.
Contributions from the Mining Sector. South Africa is the world’s top producer
of platinum and chromium, which are mined in northeastern cities like Rustenburg and Steelpoort
and are becoming increasingly commercially important. To the north of Pretoria, vast amounts
of platinum-group and chromium minerals can be found. The Northern Cape province is home to
the majority of the world’s iron ore and manganese resources, and titanium-bearing sands can be found
along the eastern seaboard. Uranium, palladium, nickel, copper, antimony, vanadium, fluorspar,
and limestone are also produced in the country. Diamond mining, which was previously concentrated
around Kimberley, is now spread around the globe. De Beers Consolidated Mines, Ltd. Controls a
substantial portion of the South African diamond industry, which is one of the world’s largest.
Contributions from the Manufacturing Industry. Food processing, textiles, metals,
and chemical manufacturing are the most important manufacturing sectors. Agriculture and fisheries
support a significant amount of activity in meat, fish, and fruit canning, sugar refining,
and other processing, with more than half of these products being exported. From humble beginnings in
the manufacture of explosives for use in mining, a massive and complicated chemical industry has
grown. Plastics, resins, and industrial chemicals are all produced by a coal-based petrochemical
sector. The metal industry, which is centered in Gauteng, gets a lot of its raw materials
from the area’s iron and steel producers. Imported materials are mostly used by aluminum
manufacturers in KwaZulu-Natal. Automobiles, ships, building materials,
electronics, and a variety of other things, including armaments, are all manufactured.
Though the weapons industry has begun to diversify into non-military
production, when military sanctions were relaxed, the post-apartheid government supported a
contentious arms export sector. Manufacturing has always been strongly reliant on foreign capital;
it grew swiftly in the 1960s and early 1970s, but grew slowly or even shrank in the 1980s.
Manufacturing and its demand for foreign capital become even more important for national
growth as mining diminishes. Exports account for about one-fourth of manufacturing production.
Financial Growth. The South African Reserve Bank,
which is the sole issuing authority for the rand, the national currency, has a well-developed
financial system. It is in charge of monetary policy formulation and implementation, as well
as managing foreign exchange transactions. There are numerous registered banking institutions,
including merchant, savings, investment, and discount banks, as well as commercial banking.
The Development Bank of Southern Africa, for example, is a quasi-governmental organization
that promotes development projects. The financial sector is dominated by private
pension and provident funds, as well as more than two dozen insurance companies.
The Johannesburg Stock Exchange is the center of a bustling capital market.
Contributions of Trade. South Africa’s economy is subject to global
economic conditions due to its reliance on foreign trade. Exports of precious and basic metals have
been the most important, although agricultural items and military equipment have also played a
significant role. Chemicals, chemical products, and motor cars are the country’s main imports.
China, the United States, Germany, and Japan are South Africa’s biggest trading partners. Regional
trade is becoming increasingly vital in Southern Africa, particularly through the Southern African
Development Community. South African corporations have pushed to expand their involvement in other
African countries after the end of apartheid, particularly in mining and commercial activity.
Contributions of Tourism. South Africa’s economy is becoming
increasingly reliant on tourism. While African countries account for the majority of visitors,
Europe and the Americas are becoming increasingly popular. The national and transnational parks are
among the various tourist attractions. Travel between South Africa and other African countries
is becoming easier. Table Mountain, Robben Island (designated a UNESCO World Heritage
site in 1999; the site of an infamous prison), and historic sites such as the
former diamond mine in Kimberley, the Vredefort Dome (designated a UNESCO World Heritage site
in 2005; the world’s oldest and largest meteorite impact site), and the Mapungubwe
settlement area are among the most popular tourist attractions (designated a UNESCO World Heritage
site in 2003; the ruins of an important kingdom of the Iron Age). Ecotourism and village tourism,
in which visitors can learn about traditional rural culture, are becoming more popular.
From the contributions of various sectors, South Africa has emerged to overthrow several
other African countries and ranked one of the top richest African country. It is safe to say that
investment into the various sectors in a country has a great role to play with the nation's wealth
and development. South Africa is what it is today because of the major efforts put in place by its
government towards development. Though a rich nation, efforts are still being put in place
to see that it attains the height of a More Economically Developed Country(MEDC) just
like the U.S.A, Germany and many others. Thanks for watching. Please like, share, subscribe,
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