Country Analysis -- Main productions in South Africa

South Africa’s economy is reasonably diversified into sectors including mining, agriculture and fisheries, vehicle manufacturing and assembly, food processing, clothing and textiles, telecommunication, energy, financial and business services, real estate, tourism, transportation and wholesale and retail trade.

Source: Statistics South Africa

Finance, real estate, business services

The finance and business services sector is the largest sector in the South African economy. The South African banking system is well developed and effectively regulated, comprising a central bank, a few large, financially strong banks and investment institutions, and a number of smaller banks.

Manufacturing

South Africa has developed an established, diversified manufacturing base that has shown its resilience and potential to compete in the global economy. The sector contributed 15.2% to South Africa's GDP in 2013, making it the third-largest contributor to the nation's economy. Manufacturing is dominated by industries such as agro-processing, automotive, chemicals, information and communication technology, electronics, metals, textiles, clothing and footwear.

The automotive industry is one of South Africa's most important sectors, with many of the major multinationals using South Africa to source components and assemble vehicles for both the local and international markets. The sector accounts for about 12% of South Africa's manufacturing exports, making it a crucial cog in the economy. The automotive and components industry is perfectly placed for investment opportunities. Vehicle manufacturers such as BMW, Ford, Volkswagen, Daimler-Chrysler and Toyota have production plants in the country, while component manufacturers (Arvin Exhaust, Bloxwitch, Corning, Senior Flexonics) have established production bases here. Companies with production plants in South Africa are placed to take advantage of the low production costs, coupled with access to new markets as a result of trade agreements with the European Union and the Southern African Development Community free trade area.

Wholesale and retail

This is the largest sector of the South African economy. Retailers in textiles, clothing, footwear and leather goods are major contributors to the industry.

Tourism

Tourism has been earmarked as a growth industry in South Africa, as the industry is ideally suited to adding value to the country's many natural, cultural and other resources. According to the World Travel and Tourism Council, tourism directly and indirectly constitutes approximately 7% of GDP and employment in South Africa. The 2010 Fifa World Cup boasts the tourism industry as South Africa received exposure from the event.

Communications

The communications sector has been one of the fastest growing of the South African economy, reflecting the rapid expansion of mobile telephony across the country. According to the Economist Intelligence Unit's Information Industry Competitiveness Index 2008, South Africa ranks 37th out of 66 countries reviewed, owing to well-established business and legal sectors.

Mining industry

South Africa is a world leader in mining. The country is famous for its abundance of mineral resources, it is accounting for a significant proportion of world production and reserves. South African mining companies of gold, platinum, base metals and coal are key players in the global industry. The mining industry contributed 4.9% to GDP in 2013. Though its contribution to GDP is not significant, its contribution to the export of the country’s exports is as significant as 60%.

Agriculture

Agriculture as a percentage of GDP has decreased over past four decades. This implies that the economy has gradually become more advanced. In 1960, agriculture constituted 9,1% of the total economy; this has decreased to only 2,2% in 2013. Though this decrease would seem to be a negative trend from a farmer's perspective, it signals that the South African economy is reaching maturity as the secondary and tertiary sectors become more important. Maize is most widely grown - followed by wheat, oats, sugar cane and sunflowers.