Private institutions and individuals own most productive assets. The state owns most land and major public utilities, although many of these have recently been privatized. In 1991 the government began selling off state-owned companies, and today South Africa has one of the highest rates of privatization among developing countries. The government also encourages direct foreign investment in certain sectors such as mining, construction, manufacturing and tourism that it considers essential to economic growth.
With respect to land ownership, there is a long history of racial discrimination against black South Africans by whites who controlled almost all productive land during apartheid (the system established under white minority rule). Today about 80 percent of all agricultural land is owned by whites; only 3 percent belongs to blacks despite their far larger share of the population (about 80 percent).
How is the agricultural sector in South Africa set up?
Agricultural production includes grain, fruits, sugar cane, poultry, dairy products, cattle, and other livestock products. South Africa has one of the world’s leading food-processing industries.
South Africa is a net exporter of processed agricultural and food products to both domestic consumers and to foreign markets.
Manufacturing products include processed foods; iron, steel; textiles; chemicals; petrochemicals; fertilizer; mining equipment; motor vehicles and parts.
How is the economy of South Africa set up?
The economy is heavily skewed towards the city centres.
In South Africa, goods and services are allocated in a way that is highly skewed towards the city centres. This means that only around 10 per cent of the population lives in rural areas. The areas in and around the cities of Johannesburg, Cape Town, Durban, Pretoria and Gqeberha hold approximately 90 per cent of South Africa’s economically active population.
Conclusion
The economy is heavily skewed towards the city centres.
