Forget, Nigeria, Morocco, Algeria, Egypt, and Ghana.
When it comes to money all these fore mentioned countries are just the new kids on the block.
South Africa is the original gangster economy in Africa.
Yup, South Africa is the OG wealthiest nation in Africa even though it has fallen to nigeria.
South Africa is the second richest country in Africa. You see this country is what I like to
call “Old Money Rich.” The OG nation is like African royalty and that’s not just because of
Nelson Mandela. No, because you probably didn’t know that South Africans were building factories
that manufacture automobiles before Nigerians even had a national anthem.
This country is the only African country with enough banks to host its own world cup.
And if you know anything about the World Cup, you know it ain’t cheap. South Africans are so sassy,
so posh that their drinking water is rated 3rd best in the world for being safe and ready to
drink. They beat England, Germany, China, and even the United States on that scale.
But Before we dig into All the details into why south Africa Is So rich. we would love for you
to take a second and hit the like button on this video… It Helps more people see Our Content. have
you done that? Let’s continue. Resource and Power.
It is often said the more natural resources a country owns, the richer it is.
Welcome to South Africa!! South Africa is rich in a variety
of minerals. In addition to diamonds and gold, they also contain reserves of iron ore, platinum,
manganese, chromium, copper, uranium, silver, beryllium, and titanium.
South Africa Isn’t that rich in commercially exploitable deposits of petroleum,
but they own moderate quantities of natural gas located off the southern coast, and synthetic
fuel is made from coal at two large plants in the provinces of Free State and Mpumalanga.
Even though manufacturing has been employing more people for the past decades in South Africa
and still produce a greater proportion of the gross domestic product of the country
than mining has, the mining sector continues to form the core of the South African economy
as mining-centered holding companies invest in other economic activity.
The mining sector contributes about 250 billion US dollars to the South African GDP Annually.
Gold still remains the most important mineral and South Africa is one of
the world’s largest producers and reserves are large. however, production is slowly declining,
and prices have never equaled their spectacular highs of the early 19 70s.
Coal is another of South Africa’s valuable mineral products. Large known deposits lie,
mostly at easily mined depths, beneath the Mpumalanga and northern Free State Highveld.
Coal is produced primarily for export to East Asia and Europe and for the generation of electricity.
South Africa is the world’s largest producer of platinum and chromium, which are mined at
centers such as Rustenburg and Steelpoort in the northeast and are becoming increasingly
significant economically. Vast deposits of platinum-group and chromium minerals are located
mainly to the north of pretoria. Northern cape province contains most of the major deposits of
iron ore and manganese, and titanium-bearing sands are common on the eastern seaboard.
In addition, the country produces uranium, palladium, nickel, copper, antimony, vanadium,
fluorspar, and limestone. Diamond mining, historically concentrated around Kimberly,
now occurs in a variety of localities. The South African diamond industry,
among the world’s largest, is largely controlled by De Beers Consolidated Mines, Ltd.
Nearly all of South Africa’s electricity is produced thermally, almost entirely
from coal. Most electric power is generated by ESKOM at huge stations in Mpumalanga.
Synthetic fuel derived from coal supplies a small proportion of the country’s energy needs,
as does imported oil refined at the ports or piped to a major inland refinery at Sasolburg. The
hydroelectric potential is limited, though there are government-developed projects on a number
of rivers; more significant are the projects to import electricity from stations on the Zambezi
River at Cahora Bassa, Mozam., and on rivers in the Lesotho Highlands. South Africa exports
electricity to various Southern African countries. Selling electricity and power to other countries
also adds to South Africa’s Riches Let’s Talk About Manufacturing
The major manufacturing sectors in South Africa are food processing industries
and the production of textiles, metals, and chemicals. Agriculture and fisheries
provide the basis for substantial activity in meat, fish, and fruit canning, sugar refining,
and other processing. More than half of these products are exported to other countries.
A large and complex chemical industry has developed from early beginnings in the manufacture
of explosives for use in mining. A coal-based petrochemical industry produces a wide range of
plastics, resins, and industrial chemicals. The metal industry, centered in Gauteng,
draws much of its raw material from the iron and steel producing firms located in the area.
Imported materials supply aluminum manufacturers located mainly in KwaZulu-Natal.
South Africa is involved in the manufacturing of automobiles, ships, building materials,
electronics, and many other products, notably armaments. Though the weapons industry has
begun to diversify into nonmilitary production, the post-apartheid government has also promoted
a controversial export trade in arms, after military sanctions were lifted.
Manufacturing has depended heavily on foreign capital; it expanded rapidly in
the 19 60s and early ’70s but grew relatively slowly or even contracted during the 80s.
As mining gradually declines, manufacturing and its need for foreign capital take on even
greater importance for national development. About one-fourth of manufacturing output is exported.
The Financial System Of South Africa South Africa has a well-developed financial
system, centered on the South African Reserve Bank, which is the sole issuing
authority for the rand, the national currency. It formulates and implements monetary policy
and manages foreign-exchange transactions. There are many registered banking institutions,
a number of which concentrate on commercial banking, as well as merchant, savings, investment,
and discount banks. One such bank, the Development Bank of Southern Africa, is a quasi-governmental
company created to promote development projects. Private pension and provident
funds and more than two dozen insurance companies play significant roles in the financial sector.
An active capital market exists, organized around the Johannesburg Stock Exchange.
Trading With Other Countries. Because of its dependence on foreign trade, South
Africa’s economy is sensitive to global economic conditions. Precious metals and base metals have
been leading exports; agricultural goods and military equipment also play an important role.
Even selling electricity to neighboring countries is one of the exports of South Africa.
The country’s major imports are chemicals, chemical products, and motor vehicles.
South Africa’s main trading partners include China, the United States, Germany, and Japan.
Regional trade in South Africa is increasingly important, especially through the Southern
African Development Community. Since the end of apartheid, South African companies have sought
to expand investment in other African countries, particularly in mining and commercial activity.
The Tourism Sector. Tourism is also so important to the economy
of South Africa. While the majority of tourists come from African countries, an increasing
number of arrivals are from Europe and the Americas. There are many tourist attractions,
notably the national and transnational parks. Travel across South Africa’s borders into other
African countries is being eased. Among the most popular tourist attractions are the wine regions
in Western Cape province, table mountain, Robben island which was designated a UNESCO
World Heritage site in 19 99 just to name a few.. Ecotourism is increasing in popularity,
as is village tourism, in which visitors can learn about the traditional rural culture.
Air Trasport and shipping. South Africa is the number one airport
owner in Africa, owning over 400 airports. Inland air services, both passenger and freight, are
operated by state-owned South African Airways and by an increasing number of private competitors.
Air services connect all major cities, and we know the easier it is to move from one place to another
as fast as one can, the easier it is for business and trade to be facilitated. South African Airways
and many foreign carriers fly between South Africa and all neighboring countries while the
international service extends worldwide. O.R. Tambo International Airport near Johannesburg
is the main hub of the country’s air transport both domestically and internationally, while the
airports at cape town and Durban play increasingly important roles as international destinations.
All South African ports are owned and operated by South African Ports Operations
and National Ports Authority, subsidiaries of Transnet. South Africa Has 8 major ports.
These many ports ease international trade by facilitating imports and exports.
Durban, which serves most of KwaZulu-Natal, Mpumalanga, and northern Free State,
is the major port. Port Elizabeth, Cape Town, and East London which is the only river port
in South Africa handle mixed traffic for their immediate hinterlands and more-distant locations.
All these ports handle goods traveling to and from other African countries, including Zimbabwe,
Zambia, and the Democratic Republic of Congo. Maputo, the port closest to Johannesburg, serves
many areas of the northern provinces. Newer ports have also been developed at such places
as Richards Bay, which handles exports of coal on the north coast of KwaZulu-Natal, and in the
excellent natural harbor at Saldanha Bay north of Cape Town, from which iron ore is exported.
Agriculture. No African country can say agriculture
hasn’t contributed to its GDP. South Africa is not an exception. Agriculture is of major importance
to South Africa. It produces a significant portion of exports and contributes greatly to the domestic
economy, especially as an employer, though land and water resources are generally poor. Arable
land constitutes only slightly more than one-tenth of the country’s surface area, with well-watered,
fertile soils existing primarily in the Western Cape river valleys and on the KwaZulu-Natal coast.
Among the major crops are corn, wheat, sugarcane, sorghum, groundnuts, citrus and other fruits,
and tobacco. Sheep, goats, cattle, and pigs are raised for food and other products.
Wool and meat like beef, lamb and mutton, and goat are important. Dairy including butter and
cheese and egg production are also significant, particularly around the major urban centres.
Timber resources are minimal, but the small amount of forested land has been supplemented
by substantial areas under plantation in the wetter parts of the east and southeast. The
forest industry supplies mining timber, pulpwood for paper and board mills, and building timbers
mostly sufficient for a construction industry that primarily uses brick, concrete, and steel.
Fishing areas lie mainly off the western and southern coasts.
The principal shoal-fishing catches are pilchard and maasbanker, while offshore
trawling brings in kingklip, Agulhas sole, Cape hake, and kabeljou, among others.
Despite all the history and economic superiority of South Africa over the rest of the continent,
in all honesty, South Africa has definitely backpedalled in recent years with Nigeria
now bearing the economic mantle. But I won’t rule this sleeping giant out
and I certainly won’t bet against them rising from their slumber to their former affluence and glory.
If you enjoyed this video please remember to leave a like and also subscribe to our channel so as not
to miss out on our upcoming content. See you in another video and thanks for watching.