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Africa - Nigeria
SOUTH AFRICA
South Africa today is one of the most sophisticated and promising emerging
markets globally. The unique combination of a highly developed
first-world economic infrastructure and a huge emergent market economy has
given rise to a strong entrepreneurial and dynamic investment environment.
The South African population (43,586,097) comprises diverse ethnic,
cultural and religious groups. South Africa has eleven official languages,
each of which is afforded protection under the Constitution. English is
generally the most widely used language in national and provincial Government
and in commerce.
South Africa's newly appointed Cabinet has got down to work - and analysts
say it is clear that a "developmental state" geared towards promoting faster
economic growth forms the bedrock of government policy. Growth is looking
positive so far in 2004. The national statistics agency, Statistics South
Africa, said the economy grew by 3.1% in the first quarter - more than three
times the growth over the same period in 2003. According to newspaper
ThisDay, it is South Africa's 22nd consecutive quarter of growth - the
longest economic expansion since 1960.
This is in line with trends across the continent. The African
Development Bank has announced that the continent's economy grew by 3.7% in
2003, with some African states recording growth rates above 5%. Economists say
the improvement in the economy is partly due to a boom in domestic demand,
sparked by a series of steady cuts in interest rates over the last year and
R13.3-billion in tax relief last year.
The manufacturing, retailing and wholesale sectors
have benefited the most. Manufacturing grew 2.7% in the first quarter of the
year, while the wholesale and retail trade rose 3.3%. Strong growth was also
seen in the hospitality industry (3.3%) and agriculture (2.7%).
South Africa has been reviewed and rated by the world's most accredited risk
ratings agencies including Fitch and Standard and Poors. Standard and Poors
(S&P) have South Africa a risk rating A-/Stable/A-2 BBB-/Stable/A-3. This is
based on the fact that the government has implemented sensible fiscal policies
and has managed to bring spending under control. The country has also decreased
deficits and the external debt burden. S&P praised the South African Reserve
Bank for its independent nature and commitment to lowering inflation
South Africa, which supplies two-thirds of Africa's electricity, is
one of the four cheapest electricity producers in the world.
FDI as a percentage of GDP in the third quarter of 2001 is more in line with
what happened in 2000. The ratio increased very sharply in 2001 due to the
massive inflow in the second quarter of 2001.
There are many lucrative possibilities arising from South Africa's wealth of
natural resources and almost unlimited export and import opportunities
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