page_title: South Africa
section_title: Economy
hierarchical_section_title: South Africa / Economy
caption_attribution_description: The Johannesburg Stock Exchange building.
context_page_description: South Africa, officially the Republic of South Africa, is the southernmost country in Africa. With over 59 million people, it is the world's 24th-most populous nation and covers an area of 1,221,037 square kilometres. South Africa has three capital cities: executive Pretoria, judicial Bloemfontein and legislative Cape Town. The largest city is Johannesburg. About 80% of South Africans are of Black African ancestry, divided among a variety of ethnic groups speaking different African languages. The remaining population consists of Africa's largest communities of European, Asian, and multiracial ancestry.
  It is bounded to the south by 2,798 kilometres of coastline of Southern Africa stretching along the South Atlantic and Indian Oceans; to the north by the neighbouring countries of Namibia, Botswana, and Zimbabwe; and to the east and northeast by Mozambique and Eswatini; and it surrounds the enclaved country of Lesotho. It is the southernmost country on the mainland of the Old World or the Eastern Hemisphere, and the most populous country located entirely south of the equator.
  South Africa is a multiethnic society encompassing a wide variety of cultures, languages, and religions.
context_section_description: South Africa has a mixed economy, the second largest in Africa after Nigeria. It also has a relatively high gross domestic product (GDP) per capita compared to other countries in sub-Saharan Africa (US$11,750 at purchasing power parity as of 2012). Despite this, South Africa is still burdened by a relatively high rate of poverty and unemployment, and is also ranked in the top ten countries in the world for income inequality, measured by the Gini coefficient. In 2015, 71 percent of net wealth are held by 10 percent richest of the population, whereas  60 percent of the poorest held only 7 percent of the net wealth and the Gini coefficient was 0.63, whereas in 1996 was 0.61.
  Unlike most of the world's poor countries, South Africa does not have a thriving informal economy. Only 15% of South African jobs are in the informal sector, compared with around half in Brazil and India and nearly three-quarters in Indonesia. The Organisation for Economic Co-operation and Development (OECD) attributes this difference to South Africa's widespread welfare system. World Bank research shows that South Africa has one of the widest gaps between per capita GDP versus its Human Development Index (HDI) ranking, with only Botswana showing a larger gap.
  After 1994, government policy brought down inflation, stabilised public finances, and some foreign capital was attracted, however growth was still subpar. From 2004 onward, economic growth picked up significantly; both employment and capital formation increased. During the presidency of Jacob Zuma, the government increased the role of state-owned enterprises (SOEs). Some of the biggest SOEs are Eskom, the electric power monopoly, South African Airways (SAA), and Transnet, the railroad and ports monopoly. Some of these SOEs have not been profitable, such as SAA, which has required bailouts totaling R30 billion ($2.25 billion) over 20 years.
  Principal international trading partners of South Africa—besides other African countries—include Germany, the United States, China, Japan, the United Kingdom and Spain.
  The South African agricultural industry contributes around 10% of formal employment, relatively low compared to other parts of Africa, as well as providing work for casual labourers and contributing around 2.6% of GDP for the nation. Due to the aridity of the land, only 13.5% can be used for crop production, and only 3% is considered high potential land.
  In August 2013, South Africa was ranked as the top African Country of the Future by fDi magazine based on the country's economic potential, labour environment, cost-effectiveness, infrastructure, business friendliness, and foreign direct investment strategy.
  The Financial Secrecy Index (FDI) ranks South Africa as the 50th safest tax haven in the world.
caption: The Johannesburg Stock Exchange (JSE) is the largest stock exchange on the African continent
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