Economy

Until about 1870 the economy of the region was almost entirely based on agriculture. With the discovery of diamonds and gold in the late 19^th century, mining became the foundation for rapid economic development. In the 20^th century the country’s economy was diversified, so that by 1945 manufacturing was the leading contributor to the gross national product⁹ (GNP). By 2006, services contributed some 67% of the GNP, while industry contributed over 30% and agriculture only about 2.5%. The economy is still largely controlled by whites, but nonwhites make up more than 75% of the workforce. Working conditions and pay are often poor, and many nonwhites are subsistence¹⁰ farmers.

South Africa has a limited amount of arable¹¹ land (about 12%) and inadequate irrigation; production is diminished during periodic droughts. The chief crops are corn, wheat, sugarcane, fruits, vegetables, potatoes, peanuts, cotton, and tobacco. In addition, large numbers of dairy and beef cattle, sheep, goats (including many Angora goats), and hogs are raised. There is a large fishing industry, and much fish meal is produced. Tourism also contributes significantly to the economy.

The main industrial centers are Johannesburg, Cape Town, Port Elizabeth, Durban, Pretoria, and Germiston. There is food processing and a large wine industry. Principal manufactures include machinery, textiles, iron and steel, chemicals, fertilizer, and forest products. South Africa is a world leader in the production of platinum, gold, chromium, diamonds, aluminosilicates, manganese, and vanadium. Other leading minerals extracted are copper ore, coal, asbestos, iron ore, silver, titanium, and uranium. Automobile assembly, metalworking, and commercial ship repair are also important.

The main imports are machinery and equipment, chemicals, petroleum products, scientific instruments, and foodstuffs. The chief exports are gold, diamonds, platinum, other metals and minerals, equipment, chemicals, and arms. The principal trade partners are Germany, the United States, Japan, and Great Britain. South Africa carries on a large-scale foreign trade and generally maintains a favorable trade balance.

Government

South Africa is a federal republic. Until 1994 it was governed by the white minority with minimal mixed-race and Asian representation and virtually¹² no black representation. In April 1994, the country became a fully multiracial democracy, under an interim¹³ constitution; a permanent constitution was adopted in 1996. It provides for a strong central government headed by a president, who is elected by the National Assembly for a five-year term and serves as both the head of state and head of government. The bicameral¹⁴ Parliament consists of a 400-member National Assembly, which is elected by proportional representation, and a 90-seat National Council of Provinces, which is elected by the provincial legislatures¹⁵. Legislators serve five-year terms. The constitution contains an extensive bill of rights and provides for an independent judiciary; the Constitutional Court is the highest court of appeal¹⁶. The leading political parties are the African National Congress, the predominantly white Democratic Alliance, and the Zulu-based Inkatha Freedom party. Administratively, the country is divided into nine provinces. Provinces are given exclusive powers in only a few areas, such as roads and recreation.