South African Economic Systems Flashcards
What type of economic system does South Africa have?
South Africa has a mixed economic system, combining elements of both a market economy and a command economy.
What are the key features of South Africa’s mixed economy?
BSA
*blends free-market principles *significant government involvement
*allows both private and government entities to invest
What is the primary sector of the South African economy focused on?
The primary sector focuses on extracting and utilizing natural resources.
What are the major contributions of the mining industry in South Africa?
South Africa is one of the world’s largest producers of platinum, gold, and other minerals, contributing significantly to exports and jobs.
What does the agriculture sector in South Africa include?
It includes crops like maize, sugarcane, and grapes, as well as livestock farming, playing a key role in food security and rural employment.
What does the secondary sector of the South African economy involve?
The secondary sector involves manufacturing and industry.
What are some key areas within the manufacturing sector in South Africa?
*automotive
*food processing
*chemicals,
*providing jobs and supporting the export economy.
What is the largest sector in South Africa’s economy?
Tertiary sector
What role does finance and banking play in South Africa’s economy?
It is a well-developed financial sector, with Johannesburg as a financial hub in Africa.
What is the significance of tourism in South Africa?
South Africa is a major tourism destination, attracting visitors for its wildlife, culture, and scenic landscapes.
What is the role of the South African government in the economy?
RPI
*regulates certain industries, *provides social services, *implements policies aimed at reducing poverty, unemployment, and inequality.
What are State-Owned Enterprises (SOEs) in South Africa?
SOEs are government-owned companies in sectors like electricity (Eskom), transport (Transnet), and broadcasting (SABC), playing a key role in infrastructure and service delivery.
What is Broad-Based Black Economic Empowerment (B-BBEE)?
framework aimed at addressing historical economic imbalances by promoting economic participation of previously disadvantaged groups.
What are some economic challenges faced by South Africa?
*High unemployment (youth) *highest levels of income inequality in the world.
What reforms has the South African government introduced?
PAIE
*Policies for growth
*attract foreign investment
*Improve education and skills *expand infrastructure.
