Closure

Since attaining democracy in 1994, South Africa has been one of the most productive countries in Africa. It’s economy has been growing at almost 5% a year for the past several years. This economic growth aids the unemployment and poverty that negatively affects all of Africa. With nearly ¼ of South Africa’s labor force currently unemployed, South Africa has implemented several programs geared towards creating and sustaining jobs within the country.   Such polices include developing infrastructure to upgrade and build railway lines, harbours, ports, and roads. Increasingly, production is becoming more globally oriented, and South Africa is branching out to foreign countries and forming integral parts of supply chains. To promote continued economic growth, South Africa relies on the free market system and plans to tear down any existing barriers to trade, especially those faced by South African exporters.  To promote sustainable growth, South Africa’s global economic strategy focuses on all of Africa and a strong developmental agenda with foreign powers.

International Trade

"Trade (2009): Exports--$71.9 billion; merchandise exports: minerals and metals, motor vehicles and parts, agricultural products. Major markets--China, U.S., Japan, Germany, U.K., Sub-Saharan Africa. Imports--$75.7 billion: machinery, transport equipment, chemicals, petroleum products, textiles, and scientific instruments. Major suppliers--China, Germany, U.S., Saudi Arabia, Japan.
GDP composition (2009): Agriculture and mining (primary sector)--7%; industry (secondary sector)--20%; services (tertiary sector)--73%. South Africa is one of the largest producers of platinum, manganese, gold, and chrome in the world; also significant coal production."
US Department of State


These facts show that South Africa is a country, rich in natural resources, that primarily imports technology based products.  South Africa relies heavily on the most developed nations in the world, including the US, China, and much of Europe. Trade links with countries in Africa are also considered vital to South Africa. The country’s economy is permanently connected to that of the southern African region, and its success is linked to the economic recovery of the continent.
 

"Since 2001, Germany has been South Africa’s largest source of imports, showing annual growth of 18.5% between 2007 and 2008. In 2008, South Africa’s biggest trade partner was the Netherlands."
Economy of South Africa

Fiscal and Monetary Policy

South Africa's monetary policy is condensed into the South African Reserve Bank (SARB).  This institution acts as the country's central bank and, according to South Africa's Constitution, is supposed to "protect the value of the currency".  The SARB attempts to combat inflation and grow the country's economy in the market system through competition and fairness.  The South African Reserve Bank determines the budget, which can come to affect production, income, and employment.

An overview of monetary policy
Fiscal policy