About South Africa

Facts about South Africa

Land & people

Area: 1,219,912 sq km
Population (July 2005 est.): 44,344,136
Capital: Pretoria (official); Bloemfontein (judicial) and Cape Town (legislative).
Official languages: English, Afrikaans, isiNdebele, isiXhosa, isiZulu, Sepedi, Sesotho, Setswana, siSwati, Tshivenda and Xitsonga.
Per capita GDP (2005 est.): $11,900

Located at the extreme south of the African continent, South Africa has a long coastline stretching more than 2,500km and across two oceans. It is bordered by the Atlantic Ocean on the west, and the Indian Ocean on the south and east. Along its northern border, from west to east, lie Namibia, Botswana, and Zimbabwe, and to the northeast are Mozambique and Swaziland. Wholly enclosed by South Africa, and situated in its eastern central plain, is the independent kingdom of Lesotho.

The country has a great variety of climate zones, from the extreme desert of the Kalahari near Namibia to lush subtropical climate along the border with Mozambique. It quickly rises over a mountainous escarpment towards the interior plateau known as the Highveld. The country has nine provinces: Eastern Cape, Northern Cape and Western Cape in the west and south; Free State in the central region; Limpopo and North West in the north and northwest; KwaZulu-Natal in the eastern region; Gauteng and Mpumalanga in the northeast.

The diversity in flora, fauna, people, cultures and landscapes is unmatched. Eco-tourism, the fastest growing segment of the South African tourism industry, includes bird watching, nature photography, hiking and mountaineering, visits to cultural heritage villages and sites of San (bushman) rock art.

Passport/visa

Valid passports are required by foreign nationals to enter South Africa. Citizens of some countries may visit South Africa without a visa. For information, contact the nearest South African embassy or consulate.

Cash/credit cards

Foreign currency and travelers cheques may be converted into local currency at most banks and foreign exchange dealers. Changing currency at a hotel will usually involve the charging of a larger commission than at a bank. Most hotels, shops, restaurants and other retail outlets accept international credit cards such as MasterCard, Visa, American Express and Diners Club for payment.

When to go

There’s not really a bad time to visit the country but, depending on what you would like to do, some seasons are better than others. The best time to: go on safari is June to September (dry season); visit Cape Town is November to March (summer); go rafting is December to February (rainy season); see flowers is August to September (spring); go whale watching is June to December. Most South Africans plan their vacations during the long school holiday from mid-December to end-January so hotels, tours, and lodges book up quickly during that time.

Accommodation

There’s a diverse range of accommodation available in the country – from formal hotels to informal holiday halts and cottages, game lodges and reserves, guesthouses, youth hostels and bed-and-breakfast sectors.

Tipping

Tipping is mandatory: around 10 to 15 per cent of the bill is usual.

GETTING AROUND
Efficient network

Domestic flights are numerous and connect major towns and cities. The road network is well developed. There are several bus companies, and buses are comfortable, luxurious, and cheaper than flying.

The Blue Train offers the ultimate in luxury rail travel. You have to book well in advance since this train ride, from Pretoria to Cape Town, is truly a legendary experience. The Shosholoza Meyl – a safe and inexpensive luxury train with many routes to choose from – is an excellent option in getting around the country.

All major international and a number of local car hire companies are represented.

There’s a well-developed hiking trail system with options from relaxing nature walks to strenuous rugged wilderness trails.

Looking upbeat

Grand landscape, a vibrant economy, seven heritage sites… indeed, South Africa is blessed.

Known as ?The Rainbow Nation’ for its cultural diversity, South Africa, at the southern tip of the African continent bordering Namibia, Botswana, Zimbabwe, Mozambique and Swaziland, is slightly smaller than twice the size of Texas. Immigrants from Europe, significant mineralogical wealth, a vibrant economy and nature’s unabashed spread of splendour marks South Africa from the rest of the continent.

South Africa is a middle-income country with an abundance of resources, well-developed financial, legal, communications, energy, and transport sectors and a stock exchange (the JSE Securities Exchange) that ranks among the 10 largest in the world. South Africa’s per capita gross domestic product (GDP), corrected for purchasing power parity, positions it as the 60th wealthiest nation in the world. The rand, the world’s most actively traded emerging market currency, has joined an elite club of 15 currencies – the continuous linked settlement (CLS) – where forex transactions are settled immediately, lowering the risks of transacting across time zones. The rand was the best performing currency against the US dollar between 2002 and 2005, according to the Bloomberg Currency Scorecard.

South Africa has a large agricultural sector, and is a net exporter of farm products. Agriculture constituted eight per cent of its exports in the past five years. It is the eighth largest wine producer in the world, and the 11th largest producer of sunflower seeds. It exports sugar, grapes, citrus, nectarines, wine and deciduous fruits; it is the world’s largest producer of platinum, gold and chromium. It has the most sophisticated free-market economy on the African continent. The country represents only three per cent of the continent’s surface area, yet it accounts for about 40 per cent of all industrial output, 25 per cent of the GDP, over half of generated electricity and 45 per cent of mineral production in Africa.

South Africa is also a gateway for investment into Sub-Saharan Africa. In addition to its wealth of mineral resources, South Africa is the world’s largest exporter of gold, platinum and significant amounts of coal. The value-added processing of minerals to produce ferroalloys, stainless steel and similar products is a major industry and an important growth area. Its diverse manufacturing industry is a world leader in several specialised sectors, which include railway rolling stock, synthetic fuels, and mining equipment and machinery.

South Africa’s GDP has been on the rise in recent times. Its growth is close to a healthy five per cent, a distant cry from the economic lull of the late 90s. According to the South African Reserve Bank, GDP growth was running at an annualised 4.8 per cent in the second quarter of 2005 (compared to 3.7 per cent in 2004 and 2.8 per cent in 2003).

Exports have also increased to close to 30 per cent of GDP, up from 11.5 per cent a decade ago. South Africa’s major trading partners include the UK, the US, Germany, Italy, Belgium, and Japan along with other Sub-Saharan African countries. South Africa is a member of the Southern African Customs Union (SACU) and the Southern African Development Community (SADC).

Trade policy

In August 1996, South Africa signed a regional trade protocol agreement with its SADC partners. The agreement was ratified in December 1999 and implemented in September 2000. It intends to provide duty-free treatment for 85 per cent of trade by 2008 and 100 per cent by 2012. South Africa is also a member of the World Trade Organisation (WTO). Products from the US qualify for South Africa’s most-favoured-nation tariff rates. South Africa is also an eligible country for the benefits under the African Growth and Opportunity Act (AGOA), and most of its products can enter the US market duty free.

After the November 1993 bilateral agreement, the Overseas Private Investment Corporation (OPIC) can assist the US investors in the South African market with services such as political risk insurance and loans and loan guarantees. In July 1996, the US and South Africa signed an investment fund protocol for a $120 million (about Dh441 million) OPIC fund to make equity investments in South Africa and southern Africa. OPIC is establishing an additional fund – the Sub-Saharan Africa Infrastructure Fund, capitalised at $350 million (about Dh1,286 million) – for investment in infrastructure projects. The Trade and Development Agency (TDA) has also been actively involved in funding feasibility studies and identifying investment opportunities in South Africa for US businesses.

Without doubt, South Africa is the economic powerhouse of Africa with a GDP four times its southern African neighbours and comprising about 25 per cent of the entire continent’s GDP. It was the largest investor into the rest of Africa between 1990 and 2000, according to a 2003 report by LiquidAfrica Research, with investments averaging about $1.4 billion (about Dh5 billion), amounting to some $12.5 billion (about Dh46 billion) over the decade. It was rated the most competitive economy in the sub-Saharan region and the most attractive country in Africa to invest in by the World Economic Forum’s 2004 annual Global Competitiveness Index.

Now there is a shift in trade winds. According to market analysts, the rapid growth of bilateral trade between South Africa and China will impact the rand. James Robertson, Standard Chartered Bank’s Head of Global Markets in South Africa, says, “China will have a great role to play in South Africa because of rapidly shrinking trade with its traditional partners. The nation’s trade with China is growing at an annual compound rate of 26 per cent, compared with the compound annual decline of 26 per cent in trade between South Africa and the US and the four per cent drop with Britain.” He adds that the current composition of the trade weighted rand basket was still primarily made up of the euro (36.38 per cent), US dollar (15.47 per cent), British pound (15.37 per cent), the Japanese yen (10.43 per cent) and 22.35 per cent in other currencies. Given the febrile rate of increase in trade with China, the South African Reserve Bank (SARB) could start looking again at adding the Chinese yuan into this mix.

According to Robertson what happens in China will probably set the course for South Africa for at least the next two decades as 1.3 billion Chinese consumers enter a material-intensive consumption phase similar to the one western Europe went through in the 1950s and 1960s. South Africa is China’s top trading partner in Africa and its exports to China, mainly resources products, have increased four-fold in the first nine months of 2005 to 22 billion rand ($3.6 billion; about Dh13 billion) from only 5 billion rand (about Dh3 billion) in the first nine months of 2004.

Tourist paradise

Away from its growing economic presence, South Africa is also a tourist paradise. It has golden beaches, some of the world’s best surf, spectacular scenery ranging from mountains to deserts, exquisite eco-systems and a window that opens to the wonders of the Dark Continent. It has the third-highest level of biodiversity in the world, and is the only country to contain an entire floral kingdom. Some 18,000 species of vascular plant occur within its boundaries. The semi-desert regions have an incredible variety of succulent plants – one-third of the world’s succulent plant species. The treetop canopy trail in Tsitsikamma, along with the oldest and biggest forest trees, is one of only three in the world.

The Table Mountain National Park has more plant species in its 22,000 hectares than the British Isles or New Zealand. The Drakensberg has both the highest mountain range in Africa south of Kilimanjaro and the continent’s richest concentration of rock art. South Africa is also home to seven of Unesco World heritage sites.

Kruger Park, more than a century old, is one of the world’s first wildlife conservation areas. It is part of a single, broad conservation area that spans private and public game parks, and even stretches across national borders into neighbouring Mozambique and Zimbabwe. South Africa is also a bird watchers’ paradise.

Cities that vie in comfort and amenities with the world’s best, an economy that is vigorously emerging from inherent challenges and a landscape as grand and pristine as can be, South Africa is a nation on the rise.

A treasure trove

South Africa’s competitive diamond and jewellery industry shines.

From the majestic mountains of the Cape to the rugged African bushveld, South Africa is a land of great contrasts and beauty. And beneath this land, deep within the rich African soil, lies a unique store of mineral wealth. South Africa – the land of gold, platinum, diamonds and gemstones.

The Diamond and Jewellery Federation of South Africa is the governing industry body that represents the diamond and jewellery industry and is made up of The Jewellery Council and The Diamond Council, each of which represents various trade associations that fall within that sector. In addition, De Beers, AngloGold Ashanti, Anglo Platinum, the Chamber of Mines, Harmony and Mintek are also associated in their own right.

The Federation, situated in Johannesburg, plays a diverse role in representing the interests of the industry. Its objectives are to serve as the voice of the downstream diamond and jewellery industry in South Africa. Its activities include marketing (local and international), representations to the government, negotiating on behalf of members on industry related issues, seminars and training courses, and the dissemination of information to the industry.

The Jewellery Council of South Africa is the umbrella body of four constituent bodies: Jewellery Council of SA direct membership (representing wholesalers); Jewellery Manufacturers Association of SA (representing manufacturing jewellers); Cape Jewellery Manufacturers Association (representing manufacturing jewellers in the Western Cape); and Jewellers Association of South Africa (representing retail jewellers). The Council, situated in Johannesburg, plays a diverse role in representing the interests of wholesalers, manufacturers and retailers. Activities are specific to the above sectors and include marketing (local and international), representation to government, organisation of local and international trade fairs, seminars and training courses, the operation of an internationally recognised Diamond Certification Laboratory, and dissemination of information to the industry.

The Diamond Council of South Africa is in the process of being established and will represent three constituent bodies: Rough Diamond Dealers Association of SA (representing rough diamond dealers); Diamond Dealers Club of SA (representing polished diamond dealers); and Master Diamond Cutters Association of SA (representing diamond cutting/polishing factories).

The Jewellery Council of South Africa Diamond Certification Laboratory offers diamond-grading services of the highest standard for diamonds and coloured gemstones. The laboratory also offers a laser inscription service. The Jewellery Council Information Centre offers information on the South African diamond, jewellery and watch industry.

The Jewellery Council of South Africa has established training facilities for jewellery manufacturers at tertiary educational institutions throughout South Africa. A three-year National Diploma in Jewellery Manufacture and Design is also offered to students.

The premier showcase event of the South African diamond, jewellery and watch industry is the annual Jewellex International Jewellery Trade Fair, organised by the Jewellery Council of South Africa. The fair offers visitors a unique opportunity to do business on the African continent. This annual jewellery design competition aims to foster and promote excellence in South African jewellery design and encourages young South African designers.

The Jewellery Council of South Africa has become a member of CIJBO (Confederation of Jewellery, Silverware, Diamonds, Pearls and Stones). This organisation is the international jewellery confederation of national trade associations that represents associations from 37 countries from the manufacturing, wholesale, stones and retail sectors.

CIBJO’s mission is to encourage harmonisation, promote international co-operation in the jewellery industry and to consider issues that concern the trade worldwide. Foremost of these is to protect consumer confidence.

There are about 3,000 retail jewellery stores in South Africa, of which about one-third are represented by the Jewellers Association of South Africa (JASA), the organisation that represents retail jewellers.

While South Africa has a large nine carat gold consumer market, there is also a strong market for top end, hand-crafted pieces made from 18 carat yellow and white gold as well as platinum jewellery.

JASA plays an active role in representing the interests of the retail jewellers on a broad range of issues. It aggressively promotes the awareness and sale of fine jewellery in South Africa. It is also responsible for the creation and development of training programmes designed to enhance professionalism of trade on all levels.

Jewellery manufacturing

South Africa has a well-established jewellery manufacturing industry within which a wide variety of precious metal jewellery items are produced. From mass production to individual pieces, the industry caters to all needs.

The industry comprises some 350 manufacturing concerns in the formal sector ranging from large manufacturers (employing in excess of 200 employees) to smaller studios, specialising in high value-added designer pieces. The industry employs about 3,000 people. It is speculated that there are up to 2,500 manufacturers in the informal sector. The Jewellery Manufacturers Association of SA – JMASA (a national body) and the Cape Jewellery Manufacturers Association – CJMA (representing manufacturers in the Western Cape) are the two organisations that represent manufacturers.

While the predominance of South African manufactured jewellery is for local consumption, the manufacturing sector has recently embarked upon an export drive that has proved very positive.

International recognition

South African jewellers and designers have consistently won international recognition for their innovative and original designs. In addition to the manufacture of traditional items of jewellery, the ethos of the African continent and culture has resulted in the creation of uniquely South African jewellery incorporating the beauty of gold, platinum, diamonds and other gemstones. The manufacturing industry is well serviced by equipment suppliers who have a full range of equipment and consumable items utilised in the manufacturing process.

South Africa has an active polished diamond market with a range of goods being freely traded. The Diamond Dealers Club of South Africa, which is affiliated with the World Federation of Diamond Bourses, represents the polished diamond sector of the industry.

The Diamond Dealers Club of South Africa members are protected through disciplinary and arbitration mechanisms. The quality of the make of South African manufactured diamonds is renowned throughout the world.

This sector of the industry currently employs about 2,500 people and comprises about 19 diamond trading companies that are sight holders. It has more than 400 other licensed diamond cutting concerns who obtain their source of rough diamonds from De Beers, Diamdel, the South African Diamond Bourse, other rough dealers and the open market.

South African companies are world leaders in the development of new technologies for the diamond cutting industry. With Prodiamatic diamond-polishing machine, diamond bruiting machine and state-of-the-art laser cutting techniques, the industry is set to go places.

For more information on the jewellery industry in South Africa, contact the Council or visit http://www.jewellery.org.za

Bearing fruit

Citrus Academy to enable and facilitate skills development in the citrus industry.

In 2004, the Citrus Growers’ Association recognised the skills shortage in the citrus industry as a threat that had to be dealt with, and consequently established the Citrus Academy at the beginning of 2005. The academy is funded by the development levy paid by the growers, which is to be applied to the transformation and skills development in the industry.

At the head of the academy stands Jacomien de Klerk, who has years of experience in skills development and capacity building programmes, and lot of enthusiasm for the tasks at hand.

The primary objective of the academy is to enable and facilitate access for all participants in the citrus industry to relevant, quality skills development services.

“The academy is funded by growers at this time and, therefore, our efforts are focused mostly on growers, their workers and packhouses. This includes all growers, being commercial (export and non-export) and emergent growers. The academy will eventually extend its work to more directly benefit upstream and downstream suppliers as well, provided the funding base is broadened accordingly,” says Klerk. The academy was established to enable and facilitate access to skills development, but not to train people. It has the task of creating an enabling environment required for skills development to take place in a sustainable, meaningful manner, in the process enabling service providers to deliver skills development effectively.

Primary objectives

The tasks of the academy can be defined as:

- The development of citrus-specific learning material that can be used for citrus-specific production training for a wide range of target groups, has been prioritised. The lack of quality learning material has long been a limiting factor in skills development, and the academy has now undertaken a project to develop 59 sets of citrus specific learning material before the year-end, involving the most highly qualified and experienced people in the industry.

The development is based on registered unit standards and is done according to the requirements of the South African Qualifications Authority. The material will be properly accredited and made available to service providers.

- The accreditation of service providers is also an essential task. The academy will ensure that skills development is delivered on the ground by facilitators qualified to do so, monitor the activities of service providers, and control the quality of delivery.

- The academy will also provide information to growers regarding service providers in their area, funding of skills development, and skills development programmes that they or their employees can participate in.

- Monitoring skills development funding and ensuring sufficient funding is available for the tasks at hand.

In terms of courses, the academy has identified about 40 skills areas (fields of study) that involve citrus production, farm management and pack houses. The learning material that the academy is developing this year covers 17 of these skills areas, such as fertilisation, pests and diseases, marketing, propagation, etc. Material for the remainder of the skills areas will either be sourced from others, specifically for non-citrus-specific areas such as tractor operation, maintenance of tools and equipment, etc., or developed at a later stage. The next round of development will most likely focus on packing and processing.

“With so much effort and funding going into capacity building, it is easy to play the numbers game and to say that we train so many people and spent so much money. To me, what really matters is whether the learners gain knowledge and skills that they can build on in the future and that they can apply in their day-to-day activities to improve their farming practices and farming operations, ultimately benefiting the citrus industry,” says De Klerk.

- Article reprinted with permission from Jacomien de Klerk, head of Citrus Academy, and SA Fruit Journal.

CITRUS FACTS
Did you know…

According to South Africa’s Fresh Fruit Exporters’ Forum, the country’s citrus is grown in eight out of the nine provinces. The citrus season extends from late February to early October, and during this period, about a million tonnes of citrus is exported worldwide.

There are more than 1,000 citrus growers involved in exports, sending oranges, lemons, grapefruit and easy peelers to 60 countries.

Some 60,000 people are employed in citrus growing alone, with a further 40,000 employed in pack-houses. An undetermined number of people are employed throughout the supply chain in services such as transport, port handling, shipping and allied services. However, in total, more than a million people are dependent on the South African citrus industry.

Engineering success

South Africa’s space industry is poised to become a high-value service sector.

Space is no longer the sole province of brilliant physicists pushing science to its limits. It is a dynamic and vibrant industry in which technology is widely used in everyday life.

Industry sectors include manufacturing instruments for astronomy, ground segment operations such as satellite reception, space science and technology (R&D component) and engineering, i.e. the construction and manufacture of space equipment. Consequently, the DTI’s aerospace industry support initiative is positioning the highly specialised South African space industry as one of the foremost high value manufacturing and service sectors in future.

The Space Affairs Act of 1993 empowers the Minister of Trade and Industry to determine general policy related to space affairs. This involves meeting international commitments for the peaceful use of outer space, and developing a space industry programme. The co-ordination of space affairs matters in South Africa is core to this process.

As a result, the DTI has begun developing a national space policy and has appointed a consultant to assist with drafting it.

The policy will seek a balance between research and application, as well as between commercialisation and privatisation. It will also address international issues that are relevant to South Africa, such as remote sensing and the use of nuclear power in space. In addition, the policy will concern itself with creating the scientific and technical competencies to enable South Africa to act independently in instances where the sector’s unique problems demand specific technical solutions, and to meet its obligations in terms of international space agreements and treaties.

The policy is also intended to promote the development of space systems and related ground infrastructure to provide data and services required by the country.

The space industry is at the cutting edge of international competitiveness, and consequently the policy will also be designed to prepare South African industries for participation and competitiveness in the global market for space goods and services.

In tandem with policy formulation, the department is involved in the process of appointing a Space Affairs Council that will advise the Minister of Trade and Industry on space-related issues. The Space Affairs Council’s responsibilities will include hearing representations about space affairs in the country, and supervising and implementing international conventions, treaties and agreements on space affairs.