South Africa is considered a mixed economy because it has features of both capitalism and socialism. The government owns many businesses and industries, such as utilities and transportation, while private companies own others. There is also a mixture of private and public ownership in some industries. South Africa's economic policies are designed to promote equality and reduce poverty, which shows it has more socialist policies. The government provides free education and health care, as well as housing subsidies. It also imposes high taxes on the wealthy to fund social welfare programs.