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South Africa Pest Analysis

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SOUTH AFRICA HISTORY

In the history of South Africa, the earliest known settlers of the country were the San and Khoekhoe people, collectively known as Khoisan. They were two distinct cultural groups.

The first Europeans to arrive in South Africa were the Portuguese Seafarers who initiated the sea route to India in 1488. They were soon followed by other Europeans since the late 16 th century

In 1815, the British took permanent control of the Cape colony and brought in more settlers

In 1910 South Africa got freedom from the British rule.The Union of South Africa was formed on 31 May 1910. The National Party came into power in 1948 and devised a harsh system of segregation known as apartheid. This system gave rise to Black hostility and resistance worldwide, resulting in the formation of African National Congress (ANC) in 1912, an anti-apartheid organization. In 1960, the ANC was banned and in 1964 Nelson Mandela, the leader of the African National Congress was sentenced to life imprisonment.

In April, 1994, South Africa had their first democratic election which was won by the ANC and on 10 May, 1994, Nelson Mandela became the country's first Black president.

Freedom Day is the official Independence Day of South Africa , it is celebrated on 27th of April every year

GOVERNMENT TYPE

The Republic of South Africa is a federal state comprising of a national government and nine provincial governments. The constitution of South Africa was adopted in 1996 and implemented officially on 4 February, 1997. Under the political system of South Africa, the President is the executive head of the state elected by the parliament for two five year terms. The political system of South Africa has significantly evolved since the apartheid era.

Type: Parliamentary democracy.
Independence: The Union of South Africa was created on May 31, 1910; became a sovereign state within British Empire in 1934; became a republic on May 31, 1961; left the Commonwealth in October 1968; rejoined the Commonwealth in June 1994.
Constitution: Entered into force February 3, 1997.
Branches: Executive--president (chief of state) elected to a 5-year term by the National Assembly.
Legislative--bicameral Parliament consisting of 490 members in two chambers. National Assembly (400 members) elected by a system of proportional representation. National Council of Provinces consisting of 90 delegates (10 from each province) and 10 nonvoting delegates representing local government. Judicial--Constitutional Court interprets and decides constitutional issues; Supreme Court of Appeal is the highest court for interpreting and deciding non-constitutional matters.
Administrative subdivisions: Nine provinces: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Mpumalanga, North-West, Northern Cape, Limpopo, Western Cape.

Political parties: African National Congress (ANC), Democratic Alliance (DA), Congress of the People (COPE), Inkatha Freedom Party (IFP), South African Communist party

ECONOMIC OVERVIEW

Annual GDP growth between 2004 and 2007 averaged 5.0%, but fell to a rate of 3.1% in 2008 because of higher interest rates, power shortages, and weakening commodities prices. GDP contracted by 6.4% and 3%, seasonally adjusted and annualized, in the first and second quarter of 2009, respectively. South Africa is now in its first recession in 18 years, and analysts forecast negative real growth of about 2% in 2009.Unemployement rate was estimated at 23.6% in June 2009. Inflation averaged 11.3% in 2008. Increasing food and fuel prices pushed inflation above the upper end of the South African Reserve Bank’s (SARB’s) 3% to 6% inf. Inflation started to decline in 2009 and accounted for 6.4% in August 2009. The SARB’s most recent central inflation forecast projects that inflation will continue its downward trajectory and return to the 3% to 6% target range in the second quarter of 2010 and 2011. However, a fiscal deficit of 1.2% of GDP was recorded in FY2009, mainly due to the impact of weak domestic demand and the global economic crisis on tax revenues. The fiscal deficit is expected to increase to between 6% and 8% of GDP in FY2010.
South Africa has rich mineral resources. • It is the world's largest producer and exporter of gold and platinum and also exports a significant amount of coal. • the value added processing of minerals to produce fero alloys,stainless steels is a major industry and an important growth area. area. • The country's diverse manufacturing industry is a world leader in several specialized sectors, including motor vehicles and parts, railway rolling stock, synthetic fuels, and mining equipment and machinery. • Primary agriculture accounts for about 3% of the gross domestic product. Major crops include citrus and deciduous fruits, corn, wheat, dairy products, sugarcane, tobacco, wine, and wool. South Africa has many developed irrigation schemes and is a net exporter of food.

• GDP (2008): $277 billion. Real GDP growth rate (2008): 3.1%

• Negative growth rate of 2% in 2009 ,first recession in 18 years Unemployment Rate June 2009: 23.6% Inflation Rate August 2009: 6.4%

• Fiscal Deficit of GDP in FY2009: 1.2% GDP composition (2008):

• Agriculture and mining (primary sector)--8%; industry (secondary sector)--21%; services (tertiary sector)--71%.

ETHNIC GROUP

Black Africans comprise about 80% of the population and are divided into a number of different ethnic groups. Whites comprise just over 9% of the population. They are primarily descendants of Dutch, French, English, and German settlers who began arriving at the Cape of Good Hope in the late 17th century. Coloreds are mixed-race people primarily descending from the earliest settlers and the indigenous peoples. They comprise about 9% of the total population. Asians are descended from Indian workers brought to South Africa in the mid-19th century to work on the sugar estates in Natal. They constitute about 2.2% of the population and are concentrated in the KwaZulu-Natal Province.

RELIGION

Zion Christian 11.1%, Pentecostal/Charismatic 8.2%, Catholic 7.1%, Methodist 6.8%, Dutch Reformed 6.7%, Anglican 3.8%, other Christian 36%, Islam 1.5%, Hinduism 1.2%, Judaism 0.3%, other 2%, unspecified 1.4%, none 14.ONS

LANGUAGES

11 official languages, which include Afrikaans, English, Southern Ndebele, Northern Sotho, Sesotho, Swati, Tsonga, Tswana, Venda, Xhosa, Zulu. Other languages spoken are San dialects, Portuguese, German, Hindi, Telugu, Gujarati and Tamil

LITERACY

Age 15 and over, can read and write
Total population: 86.4%
Male: 87%
Female: 85.7%

TELEPHONE

The domestic telecommunications infrastructure provides modern and efficient service to urban areas, but at comparatively high costs and with limited coverage in rural areas. South Africa has made some strides towards liberalizing its telecommunication market; however, many obstacles exist for further progress. The passing of the Electronic Communications Act (ECA) of 2005 marked a new regulatory framework for liberalizing the telecommunication market in South Africa.The U.S.-led SEACOM project is the first of a series of under-sea cable projects to become operational. SEACOM will provide the first access to true broadband connectivity for countries on Africa’s Eastern seaboard which are presently 100% reliant on Telkom's expensive satellite-based technology. SEACOM's landing stations will operate on a market-based, "open-access" system

RADIO BROADCAST STATIONS AND OTHER SERVICES

The radio stations are sorted geographically by province

There are about 130 radio stations with 5 stations on border areas and 4 International including Radio Islam. Internet radio service is also available ,there are 2 internet radio service providers.

Internet service providers include 150 members ranging from large ,medium and small to affiliated providers. There are about 10 VOIP in SA.

There are 99 airports in South Africa located in different cities out of which 8 are International airports 11 are military airports while rest are domestic airports

PEST ANALYSIS

POLITICAL FACTORS:

• South Africa achieved independence from Britain on 31 May, 1910.,the official independence day is 27th April

• Parliamentary Democracy comprising of a National government and Nine Provincial governments

• Constitutional courts for constitutional issues and Supreme court for non-constitutional issues

• Currently African National Congress is the rulling party .

• The political environment is quite stable in SA.

• The president (chief of state) is elected for two 5-year term by the national assembly

• The judiciary is independent of the executive and the legislature.

• Government is three-tiered, with representatives being elected at the national, provincial and local levels

• Controls on immigration

ECONOMICAL FACTOR

• GDP (2008): $277 billion. Real GDP growth rate (2008): 3.1%

• Negative growth rate of 2% in 2009 ,first recession in 18 years Unemployment Rate June 2009: 23.6% Inflation Rate August 2009: 6.4%

• Fiscal Deficit of GDP in FY2009: 1.2% GDP composition (2008):

• Agriculture and mining (primary sector)--8%; industry (secondary sector)--21%; services (tertiary sector)--71%.

• It is the world's largest producer and exporter of gold and platinum and also exports a significant amount of coal.

• High potential for growth

SOCIO-CULTURAL FACTOR

• There are about 9 religions worshiped with Christianity having the largest percentage of about 36%

• Ethnic groups comprise of Black Africans(80%),Whites(9%),Coloreds(mixed race people 9%),Asians (2.2%)

• Total literate population is 86.4% out of which 87% male and 85.7% female are literate.Male and female have almost the same literacy rate

• 11 Official languages are communicated all over South Africa.

TECHNOLOGICAL FACTOR

• The domestic telecommunications infrastructure provides modern and efficient service to urban areas, but at comparatively high costs and with limited coverage in rural areas.

• There is a wide range of radio and tv stations all over south Africa

• 150 internet service providers ,hence access to internet is everywhere

• Large number of domestic airports has made travelling easy and cheap for people, there are about 8 International airports located in big towns.

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