Swot Analysis Of South Africa Strength Natural Resources Economics Essay

South Africa has the universe ‘s biggest stock of manganese & A ; platinum group metals ( PGMs ) , as per the US Geological Survey, and among the highest militias of gold, diamonds, chromite ore every bit good as V.

South Africa ‘s economic system built on diamond excavation and gold. This zone is an cardinal foreign exchange earner, with gilded accounting for more than one-third to its exports. In 2009, the state ‘s diamond fabrication was the 4th biggest in the universe.

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South Africa ‘s fecund mineral militias include cherished metals & A ; minerals, energy minerals, non-ferrous metals & A ; minerals, ferric minerals, every bit good as industrial minerals.

South Africa has high degree of proficient every bit good as production expertness, and wide research & A ; development activities in this field.

Political Stability

As an emerging fiscal system, South Africa has non remained wholly unaffected by the convulsion in other emerging economic systems world-wide, particularly in Asia, every bit good as late besides in Russia. These negatively affect investor believed in these states.

South Africa ‘s peaceable and stable passage to democracy, recognized as one of the major accomplishment of the twentieth Century across the universe, is non a good luck or a mere short-run accomplishment: the worlds in South Africa, which made this astonishing passage possible, are still in topographic point and confidence to future stableness.

International Dimension

Besides large-scale foreign investing in South Africa like,

Large and longstanding investings by taking European companies

BMW invested in it.

Coupled with this are the big & A ; well-established abroad communities in South Africa, particularly from Europe which includes Greece, Portugal, the UK and Germany which represent a farther warrant for continued planetary involvement and association with South Africa.

The degree of corruptness is low:

South Africa is the 2nd least corrupt state on the continent of Africa, with a somewhat better evaluation in the 2006 Corruption Perception Index by planetary watchdog Transparency International.

The state scored 4.6 in the one-year study, up from the 2005 mark of 4. ( South Africa Info )

Inflation is good under control ;

The rising prices rate in South Africa was noted at 5.60 per centum in month of October of 2012. Historically, from 1981 until 2012, South Africa Inflation Rate averaged 9.7 Percent making an all clip high of 20.8 Percentage in January of 1986 and a record depression of 0.1 Percentage in January of 2004 ( Tradding Economicss )

Strategic Location

South Africa ‘s seven concern ports signifier by far the largest, one of the best equipped and most efficient web on the African continent, pull offing annually approx 500 million dozenss of lading. They work as strategic transshipment hubs for traffic linking Europe, Asia, the Americas & A ; Africa. The extraordinary growing in air hose traffic since 1994, through the major international airdromes in Johannesburg, Durban & A ; Cape Town, is due to the rapid.

Modern Infrastructure

Due to modern substructure presently the most hearty surprise which many first-time visitants get on coming in South Africa is the outstanding physical substructure which includes modern rail, route, air every bit good as other transit services. The seaport & A ; route systems are good maintain & A ; keep huge possible for public-private joint venture.

Government Commitment to Investment Facilitation

The South African authorities invites more and more foreign investors. All exchange controls on non-residents have been lifted so that investors are free to take their money out of the state at any clip.


Coastal Area

South Africa have 3000 Km coastal line which is connected with both the Atlantic ocean and Indian Ocean. Due to this, if any natural catastrophes arise in an ocean, its direct impact seems over the South African economic system. South Africa ‘s major five metropoliss are located at a coastal country which are Cape Town, Durban, Johannesburg, so there may be opportunities of dislocation of economic system due to this ground.

Inadequate Technology

Due to miss of engineering South Africa fail to use their natural resources efficaciously. South Africa holds non lone minerals but besides agricultural resources so that their agribusiness can besides turn at a effectual border but due to miss of progress engineering indirectly south Africa lose the chance of deriving the employment and public assistance every bit good from the natural resources and they exports such resources which will non bring forth good sum for the south Africa.


The South African wellness sector has a chief job of HIV-AIDs. The impact of the AIDS epidemic is seen in the dramatic alteration in South Africa ‘s general mortality rates. The overall one-year figure of deceases increased aggressively between 1997, when 316,559 people died, and 2006 when 607,184 people died. ( Avert )

High Taxation Level

In a South Africa, there is found a high revenue enhancement degree, because of this ground people by and large avoid to pay a revenue enhancement and besides little participant ne’er of all time pay a income revenue enhancement, foreign company think that whatever we earn here, its major part we have to give to the authorities so why we do the concern here.

A South African taxpayer under the age of 65 with nonexempt income of R500 000 would hold to pay PIT of R127 095 at an effectual revenue enhancement rate of 25.4 % and a fringy rate of 38 % . ( The South African Institute of Tax Practitioners )

High Unemployment

South Africa ‘s rate of unemployment is one of the highest in the Earth. It is known as one of the major critical socio-political problems faced by the Government of the South Africa. It is estimated that approx 40 % of the South African labour force is unemployed, and more than half of the unemployed public has ne’er been occupied in some sort of employment. About 25-30 % of people look for occupations are without a occupation. ( Economy Watch )

Electricity Problem

There is problem of distribution of the power in South Africa. About 85 % of the state ‘s power is used by large company, that is, most of the power is used to do net incomes. Large company paid approximately 8 cents per kilowatt-hour while place consumers pay about 26 cents. The maltreatment of the state ‘s power by the capitalist can be seen in the long-run trades Eskom makes with aluminium smelter foremans that get them immense sums of power for every bit small as 3 cents per unit.

Personal Safety

Crime continues to be a most common issue in South Africa. Most tourers who visit South Africa leave after their holiday without any unpleasant happenings. Certain topographic points witness violent offense as a everyday activity but this tends to be in topographic points like business district Johannesburg & A ; certain townships which are the poorer countries.

Lack of Capital Management

Public sector employees in South Africa experience entitled to big one-year wage additions, because they hold much power in South Africa ‘s political elections. Unfortunately, as the authoritiess pays off this big block of workers, they fail to increase plans that help the state to run better. Government plans to assist the hapless will see less money due to the wage addition to public sector workers.

Crime in Large Cities

In South Africa there found the offense in the large metropoliss as good. There is ever a offense in rural country but in urban country every bit good found as highest degree of offense so that people are afraid to make a concern in a south Africa because there are non a safety step and authorities besides fail to forestall those offense.

High Education Cost

In South Africa, the cost of the higher instruction is high, so that hapless pupil can non afford the high cost of instruction. While the pupil who belong to rich category besides many a clip non desire to pass money for the instruction. Education is a cardinal for the hereafter of the state.


Online merchandising

There is a big range for the south African retail merchants and other retail merchant to develop a online shop for selling Their merchandises to retail client. In figure of people cognizant of cyberspace in South Africa has gone up by many times. Peoples now do cognize how to us internet and how to buy merchandises online. The no of cyberspace users in south Africa in 2009 where 4.42 million which is 54 in state comparing to the universe. ( Countries of the World ) Due to the alteration in the psychological science people now are ready to purchase merchandises from the cyberspace and are going regular user of it. Online selling would assist the industry to cut the monetary value of merchandises as there is no in-between adult male involved her and finally assist the consumer.

Large immature labor force

South Africa has a big figure of people who are immature and are able to make any type of undertaking. Harmonizing to one statistics the 65 % of entire population of South Africa is aged between 15 to 65 old ages of age i.e. 65 % of people of South Africa can make work easy ( Department, 2008 ) . A big figure of people who can make work both physical and mental is an plus or the state and would assist state to develop at a much faster rate. Young labour force would assist to develop industry which are labour intensive like cloth industry, paper, handcraft etc.

Transshipment point

The location of the South Africa gives it an chance to go a largest transshipment point in the universe. South Africa is between the Asian and American continents so any ship that wants to travel from Asiatic continents to African has to travel from South Africa. South Africa is situated in such a manner that its between Indian and Atlantic ocean. South Africa therefore has the chance to develop a transshipment point for both American and Asiatic continents. Transshipment point would assist South Africa to bring big gross as all the ship would be utilizing the port and the machinery of South Africa. Developing South Africa as transshipment point anther accessory industries would besides develop in South Africa and would make gross from voyagers. Another advantage would be the people of south Africa would acquire exposure of new merchandises that are been used by developed states.

Renewable beginning of energy

South Africa is situated in the southern hemisphere semitropical zone so it ‘s a clear dry hot conditions there most of the clip. South Africa can construct the cheapest beginning of energy i.e. solar energy on a big extent. A inexpensive beginning of energy is really utile for the state to develop an industrial economic system. A inexpensive electricity supply would assist the industries to bring forth goods at lower monetary value and with economic system of graduated table. South Africa UN boulder clay now produces its electricity with aid of coal but as the conditions is hot and sunny a solar power works can be installed in major parts of South Africa to acquire a inexpensive and renewable beginning of energy. A solar power works would besides assist to cut down C emanation continuing the natural beauty of South Africa for touristry industry to develop.

Act as an trial field for engineering

South Africa has the 4th largest telecommunication sector in the universe. South Africa has besides the diverse market for proving of new engineering in the market. South Africa is besides the one of the highest media concentrated state therefore South Africa can go the one of the major participant in the field of proving and navigation of systems and application due to its turning figure of users mundane and a diverse group of people populating.


South Africa can go one of the best tourer finishs for people how like to hold some escapade along with the merriment and the beautiful landscapes. South Africa has some of the most escapades sites that can be developed as a tourer attractive force with a safety system installed. The Bankss of sabie river landscapes of Mpumalanga and many others have the potency to go a great tourer abrasion topographic point. Along with these south Africa has a both the land and the ocean so people how likes to travel for desert campaign can travel on long with the inside of south Africa. The people who love to see the marine life can populate near the seashore of Africa and bask the beauty of marine life. And scuba plunging installation can besides be developed for the tourer to watch the imagistic life under H2O.

Huge substructure chances

President Jacob Zuma has urged South African concern to take benefit of the chances that will be formed by the monolithic new substructure build docket announced in the 2012 State of the Nation reference.



It is clear to most South Africans that favoritism remains a cardinal challenge to their democracy there is more favoritism between white and black people. As such, as a society they owe it to their egos to link with this job with honestness and openness. Inequality shaped and institutionalized by apartheid are still rampant 14 old ages into the new dispensation. Coupled with attitudinal displacement, contending these inequalities in all their manifestation would be one manner of managing this challenge instead than coming up till we are stunned by a mortifying act such as the University of the Free State and Riverlea Secondary School sagas.

Terrorist Menace

Two monolithic bombs exploded on August, 7 1998 exterior of the U.S. embassies in Dar Es Salaam, Tanzania, and Nairobi, Kenya, killing 224 people — including 12 Americans — and wounding 5,000

There are many terrorist group are activated in South Africa like:

Al Qaeda

Al Shabaabhttp: //www.criticalthreats.org/sites/default/files/imagecache/530width/main_images/analysis/Militants_Truck_Mog_main.jpg

Somalian Group


Health attention

Top of Form

South Africa had instances of health-care staff being attacked who were non targeted, but who got in the manner of struggle among individuals or groups. Once, an Emergency Medical Services ( EMS ) coworker was about petrol-bombed during pack inhuman treatment in Cape Town. In another insisting, a patient was bashed through the window of an ambulance. A

Healthcare sector is non protected by the authorities of South Africa for illustration when an ambulance goes into a topographic point ; it is non ever seen as an ambulance, threat that no 1 will touch it. Furthermore, the ambulance squad might be pick up person that the vicinity, or a demanding group, does n’t desire to be treated.

Ethical motives is one of the issue that needs to be explore farther in a provincial conference for the ground that, even in times of catastrophe, the issues can be really same.

South African mineworker menaces force per unit area

Prominent South African Pt mineworkers delivered much high wage demands and threatened to widen trade action further, intensify a crisis that is suiting the major menace to the governing party ANC from the clip when the terminal of apartheid.

More than 100 intoning strikers groups, many “ knobkerrie ” nines every bit good as beckoning sticks, accompany protest leaders as they deliver a printed memoranda puting out their demands to Amplats disposal offices near the Bleskop bowl. Police hard-edged vehicles kept the larger mass of mineworkers in the bowl, within position of a white clubhouse painted with Amplats crowd mottos such as we value and care about each other and we are one squad.

South Africa mine: Lonmin drops menace to fire workers

Striking Pt mineworkers gather on 20 August 2012 at Lonmin ‘s Marikana Pt mine

Climate ‘threat to African nutrient security

The nutrient security menace posed by clime alteration is one of the most of import challenges confronting by the African continent.

Africa has the liability to feed the universe and its ain African people, the Africa faced with tremendous conditions alteration restraint such as terrible drouth, inundations awful diseases.

Global heating every bit good as the rise of sea degrees could besides endanger piscaries & A ; cut down the agricultural production in African.

South African Cell phone Banking Faces Threat from New Law

The tuition of Interception of Communications and Provision of Communication Related Information ( Rica ) Amendment Bill was due to hold been implemented this month. However, completion was delayed expecting amendments to the act.

As it stands, the measure will necessitate cell phone operators to acknowledge and enter more than 30-million consumers within 12 months of executing of the act. Those who can non be identified will hold their services suspended. The amendment measure is aimed at bettering transparence in communications by supervising cellular & amp ; fixed-line clients in an effort to contend fraud and other offenses.


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