South africa macroeconomicfinancial profile essay

Other important crops include soybeancottonsugarsunflower seeds, wheatsorghumpearl milletcassavatobacco and various vegetable and fruit crops.

The government was forced to draw down foreign exchange reserves sharply in to meet foreign debt obligations, putting further pressure on the kwacha and inflation.

South africa macroeconomicfinancial profile essay

The proposed measures included: the ending of price controls; devaluation of the kwacha Zambia's currency ; cut-backs in government expenditure; cancellation of subsidies on food and fertilizer; and increased prices for farm produce. Unemployment rates in the townships are horrendously high — often in excess of seventy per cent.

There are numerous challenges to overcome in the near and medium term. Economic growth has decelerated in recent years, slowing to an estimated 0. Much low-valued added production such as cheap textiles and household goods is shifting to countries such as Vietnam and Bangladesh.

economic growth and development in south africa

Unfortunately for Kaunda and Zambia, the programs of nationalization were ill-timed. This is in the hands of the government. South Africa scores relatively well for the efficiency of their product markets and for having a large market size.

Zambia's floating exchange rate and open capital markets have provided useful discipline on the government, while at the same time allowing continued diversification of Zambia's export sector, growth in the tourist industryand procurement of inputs for growing businesses.

Two decades on from the formal end of the old apartheid regime, the South African economy can lay claim to being one of the wealthiest in Africa and one with a stable functioning democracy.

This country is an interesting case study in some of the growth constraint factors that have been discussed in previous chapters of the study companion.

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South Africa Economic Snapshot