Country Report
South Africa

 

  1. Brief History
  2. Even though tribes of nomadic hunters lived in southern Africa for 40,000 years, they did not reach the Cape of Good Hope until about 2,000 years ago. By the 15th century pastoral tribes had settled most of the available land.

    After the explorer Vasco de Gama opened the Cape spice route in 1498, the area became a popular stop for European crews and was eventually settled by Dutch traders. The Dutch decimated the existing tribes on their move north with violence and disease. As their power began to fade near the end of the 18th century the British moved in.

    The Dutch Boers exited from British rule and established republics throughout the interior of the country. The British annexed these republics one by one until the middle of the 19th century when diamonds were discovered in Kimberley. The Dutch resistance became stronger and the Anglo-Boer Wars began.

    The first of the wars ended with a devastating Boer victory and the British retreated until another gold strike near Johannesburg. British greed started the second of the Anglo-Boer Wars, which drained conventional Boer resources by 1902. The Boers resorted to commando style raids throughout the countryside. The British quashed this resistance with horrific reprisals that eventually compelled the Boers to sign a peace agreement.

    The Union of South Africa was established in 1910 and with it came a slew of racist legislation restricting black rights and laying the foundation for apartheid. Afrikaners controlled the country with their ultra right beliefs and domination over the black majority of the population. Blacks were restricted to so-called Homelands where they were forced to live irrespective of their birthplace and without any choice in the matter. These lands were to be self-sufficient self-governing states, but in reality they were incapable of supporting the population and became sites of intense suffering and squalid conditions.

    Black resistance began in the form of strikes, protest marches, and acts of civil disobedience. International opinion was on the side of the protestors after 69 people were killed in a Sharpeville demonstration in the early 1960s and African National Congress (ANC) leaders including Nelson Mandela were jailed.

    South Africa withdrew from the British Commonwealth in 1961 and became more isolated as other European powers withdrew from the African continent. Throughout the 1960s and 1970s black, sometime socialist states formed around South Africa's northern borders and the country's response ranged from limited military strikes to full-blown assaults.

    Domestically, violent clashes in response to black protests led to United Nations economic and political sanctions. In the mid-1980s black on black violence escalated as bitter disputes arose between political rivals, tribal enemies, gangsters, and migrant workers. President P.W. Botha's method of dealing with the situation in which people were detained and tortured along with the effectiveness of economic sanctions led to the reformer, F.W. DeKlerk coming to power in 1989.

    Apartheid restrictions were lifted and the movement toward a multi-racial government began. Free elections were held in 1994 and Nelson Mandela became the new president. South Africa rejoined the British Commonwealth several months later.

     

  3. Economic Profile
1996 1997 1998 (est.)  
GDP US$120.7 billion US$124.3 billion US$128.0 billion
GDP Per Capita US$3,185 US$3,205 US$3,225
Average GDP Growth (1993 - 1997) 2.5% To protest the South African apartheid policies the international community imposed economic sanctions; as a result the governmental policies in the mid-1970s were extremely protectionist. These policies contributed to the poor performance of the economy in the last decade. The government has now decided to reduce its role in the economy and to promote private sector involvement. Major imports: machinery, transport equipment, chemicals, petroleum products, textiles, and scientific instruments

Main trading partners: Germany, US, Japan, UK, Italy

Total US$25.7 billion (1996)

Major exports: gold, other minerals and metals, food, chemicals

Main trading partners: Italy, Japan, US, Germany, UK, other EU countries, Hong Kong

Total US$27.4 billion (1996)

Gold, chromium, antimony, coal, iron ore, manganese, nickel, phosphates, tin, uranium, gem diamonds, platinum, copper, vanadium, salt, natural gas 1996 1997 1998 (est.)  
34% ** 45% 45%
  ** plus an additional 11% that are considered underemployed

 

14.2 million economically active (1996)

By occupation: services 35%, agriculture 30%, industry 20%, mining 9%, other 6%

To counter the former restrictive, protectionist policies South Africa has encouraged privatization. The government has undertaken a policy of restructuring former state assets so that they may become more profitable and efficient. For example the state has sold Telekom to Southwestern Bell and Telekom Malaysia. South Africa offers immediate and long-term opportunities for exporters and investors. Due to the recent and profound political change combined with the lifting of international sanctions the climate is one conducive to a strong trade agenda. The country has an advanced, productive economy and a modern infrastructure to support it. South Africa is a leading member of the Southern African Development Community (SADC), which also includes Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Zambia, & Zimbabwe. South Africa is also included in the Southern Africa Customs Union (SACU), which has Botswana, Lesotho, and Namibia as its members with The Democratic Republic of Congo and Seychelles joining later in 1998. Due to rising exports and a change in monetary policy South Africa's balance of payments situation is improving. The current account balance (1996) was US$ 1.6 billion. The rate dropped from 10.3% in 1997 to 9.4% in 1998, but it is expected to climb into the next century with predictions of 10.5% in 1999 to 11.6% in 2001.

 

  1. Political Profile
Seven political parties are represented in the National Assembly. The majority of the members belong to three main parties. The predominantly black ANC party is enjoying expanded acceptance by white liberals and has the most members in the Assembly. The second largest in size is the National Party, which was originally responsible for the apartheid policies and controlled the government prior to the 1994 elections. The third largest appeals to Zulu ethnic pride and is the Zulu Inkatha Freedom Party. The four remaining groups have a small presence in the Assembly. President Mandela and his Deputy President have presided over the country's first non-racial democratic government. The country also adopted a new constitution in 1997 to reflect the change in political ideology. South Africa experienced a profound political change in 1994 with the dissolution of its apartheid government. The new democratic government allowing the black majority to rule has been steady. South Africa's northern borders are with Namibia, Botswana, Zimbabwe, and Mozambique. It completely surrounds Lesotho and almost entirely surrounds Swaziland. Christian is the predominant religion at 68% with Muslim 2%, Hindu 1.5%, and traditional & animistic 28.5%. South Africa has a parliamentary government made up two chambers. The 400 seat National Assembly whose members are decided based upon a proportional representation of the popular vote and the Council of Provinces whose 90 members consists of 10 delegates from each of the country's nine provinces. The members of the National Assemble elect the President who in turn appoints his/her cabinet.