Second biggest economy of Africa!
Economic situation in South Africa
South Africa is just not going through a recession, which is about the best the economy can do at the moment. In the first quarter of 2019, the numerous power disruptions torpedoed all prospects for potential economic growth in 2019. The economy contracted by 3.2% in the first quarter, the worst performance since the global financial crisis more than ten years ago. ESKOM somehow succeeded in allowing the light to shine again in the second quarter, allowing companies to function normally again. This underlines the crucial importance of a reliable power supply.
South Africa is struggling with complex economic problems. Economic activity in almost every sector - agriculture, mining, industry, transport and retail - declined.
The World Bank views the South African economy as a medium-income economy. As a regional production center, it is the most industrialized and diversified economy in Africa.
The high unemployment rate, with more than 25%, and inequality are considered by the government and most South Africans as the main economic problems facing the country.
The number of people experiencing difficulties accessing food in South Africa decreased in 2019. During the 2018/2019 rainy season, the northwestern parts of South Africa were affected by dry periods and droughts, and this led to poorer harvests. Food prices continue to rise.
South Africa has made great progress in the fight against HIV and tuberculosis, but serious challenges remain. The country launched its national action plan to combat xenophobia, racism and discrimination, which was an important step in tackling the widespread human rights violations caused by xenophobic and gender-based violence and discrimination.
Would you like to know more about entrepreneurship in South Africa? You can request our Country Strategy Paper!