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Business images of South Africa

Economy of South Africa

The economy of South Africa is a mixed economy, emerging market, and upper-middle-income economy, one of only eight such countries in Africa. The economy is the most industrialized, technologically advanced, and diversified economy in Africa. In 2019, the financial industry contributed US$41.4 billion to South Africa's GDP. In 2021, South Africa-based financial institutions managed more than US$1.41 trillion in assets. The total market capitalization of the Johannesburg Stock Exchange is US$1.28 trillion as of October 2021. The state-owned enterprises of South Africa play a significant role in the country's economy, with the government owning a share in around 700 SOEs involved in a wide array of important industries. The nation is among the G20, and is the only African country that is a permanent member of the group.

Top Sectors in South Africa

Natural resources in South Africa

In 2019, the country was the world's largest producer of platinum; the world's largest producer of chromium; the world's largest producer of manganese; the 2nd largest world producer of titanium; the world's 11th largest producer of gold; the 3rd worldwide producer of vanadium; the 6th largest world producer of iron ore; the 11th largest world producer of cobalt; and the 15th largest world producer of phosphate. It was the world's 12th largest producer of uranium in 2018. Mining has been the main driving force behind the history and development of Africa's most advanced economy. The country's estimated share of world reserves of platinum group metals amounted to 89%; hafnium, 46%; zirconium, 27%; vanadium, 23%; manganese, 19%; rutile, 18%; fluorspar, 18%; gold, 13%; phosphate rock, 10%; ilmenite, 9%; and nickel, 5%. It is also the world's third largest coal exporter. The mining sector has a mix of privately owned and state-controlled mines, the latter including African Exploration Mining and Finance Corporation.

Agriculture and food processing in South Africa

In 2018, South Africa produced 19.3 million tonnes of sugarcane (14th largest producer in the world), 12.5 million tonnes of maize (12th largest producer in the world) 1.9 million tons of grape (11th largest producer in the world), 1.7 million tons of orange (11th largest producer in the world) and 397 thousand tons of pear (7th largest producer in the world). According to FAOSTAT, South Africa is one of world's largest producers of: chicory roots (4th); grapefruit (4th); cereals (5th); green maize and maize (7th); castor oil seed (9th); pears (9th); sisal (10th); fibre crops (10th). The most important agricultural exports of South Africa include: edible fruit and nuts, beverages, preserved food, tobacco, cereals, wool not carded or combed, miscellaneous food, sugar, meat, milling products, malt and starch. The dairy industry consists of around 4,300 milk producers providing employment for 60,000 farm workers and contributing to the livelihoods of around 40,000 others. The food sub-sector is the largest employer within the agro-processing sector - contributing 1.4% to total employment, and 11.5% within the manufacturing sector.

Manufacturing in South Africa

The South African automotive industry accounts for about 10% of South Africa's manufacturing exports, contributes 7.5% to the country's GDP and employs around 36,000 people. BMW, Ford, Volkswagen, Daimler-Chrysler, General Motors, Nissan and Toyota all have production plants in South Africa. Large component manufacturers with bases in the country are Arvin Exhaust, Bloxwitch, Corning and Senior Flexonics. There are also about 200 automotive component manufacturers in South Africa, and more than 150 others that supply the industry on a non-exclusive basis.

Telecommunications in South Africa

The domestic telecommunications infrastructure provides modern and efficient service to urban and rural areas. This includes cellular and internet services from 5G to Gigabit Broadband. Five mobile-phone companies provide service to over 50 million subscribers, with South Africa considered to have the 4th most advanced mobile telecommunications network worldwide. The five major cellular providers are Vodacom, MTN, Cell C(Vodacom), Telkom Mobile(8.ta) and Rain, with Neotel owned by Liquid Telecoms not offering mobile service anymore. South African companies which provide services related to the Space industry, also increasing, and with the correct government legislation and support, this sector is expected to grow in South Africa.

Tourism in South Africa

South Africa is a popular tourist destination. In 2012 South Africa received 9.2 million international arrivals. In August 2017 3.5 million travellers came to South Africa. According to the World Travel & Tourism Council, travel and tourism directly contributed ZAR102 billion to South African GDP in 2012 and supports 10.3% of jobs in the country. Among the main attractions are the diverse and picturesque landscape, the game reserves and the highly regarded local wines.


South Africa - Key Economic Indicators

Exports & Imports

South Africa's economy relies heavily on exports, particularly in the mining sector. Precious metals and base metals are leading exports, with agricultural goods and military equipment also playing a significant role. Major imports include chemicals, chemical products, and motor vehicles.

Balance of Trade

South Africa's trade data fluctuates, and recent reports suggest a decline. The World Bank (World Bank) indicates South Africa's trade surplus might have narrowed in 2023 due to a combination of factors, including rising import costs and slowing global demand.

Infrastructure Development

Despite challenges, South Africa is committed to infrastructure development. The total road network exceeds 290,000 kilometers, with ongoing investments in national roads and key freight corridors.

Fiscal Policy

South Africa's fiscal policy aims to achieve sustainable growth while managing a high public debt burden. The government spends on social programs, infrastructure development, and stimulating economic activity. However, recent years have seen government attempts to control spending and broaden the tax base.

Monetary Policy

The South African Reserve Bank (SARB) is responsible for maintaining price stability through interest rate adjustments. In recent times, the SARB has raised interest rates to combat inflation, which can put pressure on economic growth.

Trade Agreements

South Africa participates in several trade agreements to expand market access for its exports. These include membership in the African Continental Free Trade Area (AfCFTA) and regional trade agreements with the Southern African Development Community (SADC).

Tax system

Capital Gains Tax: A capital gains tax applies to profits from the sale of certain assets, including stocks and real estate. The current rate is 40% for individuals in the top tax bracket. However, exemptions and exclusions exist for some assets or holding periods.
Corporate Tax Rate: South Africa boasts a relatively flat corporate tax rate of 28% on taxable income for most companies. However, small businesses may qualify for a lower tax rate.
Sales Tax (Value Added Tax - VAT): A Value Added Tax (VAT) system is in place with a standard rate of 14%. This applies to most goods and services purchased in South Africa. A zero-VAT rate applies to basic necessities like bread and milk.
Property Tax: Property tax rates in South Africa vary depending on the property type, location, and value. Rates are generally low for residential properties, typically ranging from 0.6% to 1.1% of the municipal valuation. Commercial properties may have slightly higher rates.
Payroll Tax (Pay As You Earn - PAYE): South Africa has a mandatory social security system funded by contributions from both employers and employees. The total contribution rate for PAYE, which includes income tax and social security, can vary depending on income level. As of May 2024, the rate for employees ranges from 18% to 40%, with employers contributing an additional 21%.
Tax Deductions and Credits: South Africa offers various tax deductions and credits to incentivize specific activities or provide relief for certain taxpayers. These can include deductions for medical expenses, retirement contributions, and travel expenses for business purposes.
Tax Compliance: Tax compliance efforts in South Africa have been improving in recent years, with the SARS implementing stricter regulations and digitalization initiatives. However, challenges remain, and a black market persists in some sectors.
Tax Burden: The overall tax burden in South Africa can vary depending on the taxpayer type and income level. Here's a general breakdown: (i) Individuals: The progressive income tax system means higher earners pay a larger share of their income in taxes. The top marginal tax rate for individuals is currently 45%. The combination of income tax, PAYE contributions, and possible property taxes can result in a moderate to high tax burden for high-income earners. (ii) Businesses: The flat corporate tax rate can be attractive, but the VAT and PAYE contributions add to the overall tax burden for businesses.

4113 Live Notices for South Africa ....

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Bid Offer: Lease Of Premises For Office Accommodation And Parking Within A 3Km Radius Of The International Convention Centre (Icc) In Extent Approximately Five Hundred Square Metres (500M2 ) Together With A Minimum Of Twenty-Four (24) Parking Bays For A Period Of 3 Years
country South Africa
posting date24 Aug 2025
deadline26 Sep 2025
Bid Offer: Lease Of Premises For Office Accommodation And Parking Within A 6Km Radius Of The Ethekwini Municipal Hall (Durban City Hall) In Extent Approximately One Thousand One Hundred Square Metres (1100M2 ) Together With 27 Parking Bays For A Period Of 3 Years
country South Africa
posting date24 Aug 2025
deadline26 Sep 2025
Appointment Of A Suitable Service Provider To Conduct Medical Laboratory Tests For Occupational Health And Safety Unit For A Period Of 36 Months
country South Africa
posting date24 Aug 2025
deadline26 Sep 2025
Programme Management: Inner City Regeneration In The Ethekwini Municipality (36 Months Contract)
country South Africa
posting date24 Aug 2025
deadline26 Sep 2025
Supply, Install And Maintain Public Wi-Fi Solution Over 36 Months.
country South Africa
posting date24 Aug 2025
deadline26 Sep 2025
Supply, Install And Maintain Network Access Control (Nac) Solution For 36 Months
country South Africa
posting date24 Aug 2025
deadline26 Sep 2025
Upgrading Of Trk 86004 From Gravel To Asphalt Surface In Embo Area, Ward 8, Outer West
country South Africa
posting date24 Aug 2025
deadline26 Sep 2025
Appointment Of A Service Provider For Support On Supply Chain Management (Scm) Governance And Related Internal Control Matters For A Period Of Three Year
country South Africa
posting date24 Aug 2025
deadline26 Aug 2025
Appointment Of A Servive Provider To Provide Support On Activating The Municipal Audit Turnaround Strategy And Financial Recovery Plan For A Period Of Three Years.
country South Africa
posting date24 Aug 2025
deadline26 Aug 2025
Preparation Of The 2026/27 Annual Performance Plan And Fy26/27 Annual Operational Plan (8/24/2025 7:56:47 Am)
country South Africa
posting date24 Aug 2025
deadline27 Aug 2025
To Assist The Department Of Mineral And Petroleum Resources (Dmpr) With Editing/Layout/Design And Printing Of Annual Performance Plan (8/24/2025 7:56:47 Am)
country South Africa
posting date24 Aug 2025
deadline28 Aug 2025
To Provider For The Development Of A Department Of Mineral And Petroleum Resources (Dmpr) Organizational Structure (8/24/2025 7:56:47 Am)
country South Africa
posting date24 Aug 2025
deadline17 Sep 2025
To Provide Travel Management Services To The Department Of Mineral And Petroleum Resources (8/24/2025 7:56:47 Am)
country South Africa
posting date24 Aug 2025
deadline12 Sep 2025
Request For Pre-Qualification For New Electricity Transmission Infrastructure Capacity Under The First Bid Submission Phase Of The Itp Procurement Programme (8/24/2025 7:56:47 Am)
country South Africa
posting date24 Aug 2025
deadline23 Sep 2025
The Appointment Of An Implementing Agent For The Development Of Bng And Gap Housing For Phases 2 And 3 On The Remainder Of Portion 7 Of The Farm 527, Jamestown, Stellenbosch
country South Africa
posting date23 Aug 2025
deadline22 Sep 2025
Servicing And Maintenance Of Laboratory Equipment And Supply Of Laboratory Consumable, Standards And Reagents From Date Of Award Untill 30 June 2026
country South Africa
posting date23 Aug 2025
deadline22 Sep 2025
Provision Of Software Assurance (Swa) Services For Nec Univerge 3C And Bct For A 12 Month Period
country South Africa
posting date23 Aug 2025
deadline22 Sep 2025
Lift Service Provider For The Maintenance Of The Lifts At Klapmuts Multi-Purpose Centre, Npk Building And Municipal Main Office Block For A Period Ending 30 June 2028
country South Africa
posting date23 Aug 2025
deadline22 Sep 2025
Impoundment, Care, Control And The Euthanasia Of Animals In Wc024 For A Period Ending 30 June 2028.
country South Africa
posting date23 Aug 2025
deadline22 Sep 2025
Professional Services For The Refurbishment And Construction Of Various 275Kv And 132Kv Overhead Power Lines And Related Substation Assets
country South Africa
posting date23 Aug 2025
deadline26 Sep 2025