South Africa is the economic power house of the African continent. Although
small in size, South Africa produces a large portion of Africa�s manufactured goods, farm
products, and minerals. For a country that occupies 4% of the continent�s area and has
only 6% of Africa�s people, it is remarkable that such a small percentage of the country
can contribute so much to the economy of the mother country. A recent statistical report
has shown that South Africa produces, �two fifths of Africa�s manufactured goods, a fifth
of it�s farm supplies, and half of it�s mined minerals (Fetter).
Historically, South Africa�s early economic success was in mining. In the 1880�s
large deposits of diamonds and gold were discovered and mined. The goverment pursued
this new economic oppurtunity, and quickly began mining these deposits starting in the
1880�s. Today, in South Africa manufacturing is the number one producer in the nation�s
economy, with gold continuing to play a key role in its economic success. Gold mining
alone has attracted a huge number of foreign investers, and the creation of a variety of
manufacturing and transportation facilities.
From about 1950 to 1980, South Africa was at the top of her economic prosperity.
Many took notice of this rather small but pristine country rich in natural resources. South
Africa was making quite a splash around the world. Many nations were eager to partake
in the richness of this amazing land. Foreign investors flocked to invest in the country. In
the 1980�s, however, the economy of South Africa was rocked by bitter turmoil and
domestic disturbance in the country (Barth 65). Years of suppression by an all white
government caused a domestic uprising that drove away many investors, worried that
South Africa�s policy of apartheid would cause the demise of their businesses. Frigthened
by potential economic disaster, many foreign investors, including potential investors,
turned away from involvement with this troubled nation. Countries around the world
ended their economic relationship with the country, bringing about near financial ruin for
South Africa. Trade with South Africa was either reduced severly or cut in total (Fetter).
For years, the apartheid government of South Africa dominated the economics of
the country -- a large majority of the businesses were under their control. Whites were
given the best oppurtunities to suceed economically, due to the racial philosphies of the
government. The best positions in government and industry were reserved for white
people. Black employees had no opportunity to make a play for a better career and
economic advancement. African workers that were lucky enough to get hired recieved
meager wages due to their lack of education. If it wasn�t for the government allowing the
black worker to form labor unions in 1979, which led to higher salaries for black
employees, all hope for change would have been grim (Barth 23). When the last of the
apartheid laws were repealed in 1991, the country saw an increase in trade and foreign
investment. Still, with abolishment of these laws, the white population of South Africa
maintain a monoply on all the professional high paying jobs.
Today, the country of South Africa is on the road to change, because of initiative
within the country and also with the return investment of other nations. The economy
continues to rebuild and strengthen after many years of decline caused by the fear of
apartheid government. (Fetter). Manufacturing has brought about a return of economic
strength in South Africa, aiding in the recovery of this troubled nation. A fourth of the
gross domestic product is produced by manufacturing. With a wealth of natural
resources, the outlook for the economy of the country is good. In addition to
manufacturing of goods, South Africa is supported by a diverse number of industies, such
as mining, transportation, fishing, and even comunications. International trade and foreign
investment have increased steadily, and future growth for South Africa is promising. (Bart
109).