Economic Geography of South Africa

economic sectors

• primary - harvesting natural products
• secondary - manufacturing raw materials
• tertiary - service industry
• quaternary - information expertise

sectors contribution to the SA economy: value and employment

• GDP (gross domestic product) - total value of all goods and services produced over a specific period of time.
• as a country develops, the proportion of people employed in each sector changes.
• primary decreses, tertiary increases

Contribution of agriculture to the SA economy

• direct contribution to GDP: % contribution has decreased, but totla value contribution is increasing. forward and backward linkages
• food supply: supply enough food for population
• balance of trade: agriculture supplies 10% total exports, more exports than imports.
• employment: decreased because of mechanisation, but 5mil people depend on agriculture.

Role of small-scale farmers and large-scale farmers

• large scale: produce to sell, crop and stock farming, large area (extensive), usually specialise in one product
• small-scale: subsistence level, little technology, work done by family, 1/3 of rural labour force in former homelands

Factors that favour or hinder agriculture in SA

Favour:

• climate - wide range, lots of different crops
• land ownership
• trade (exports)
• tradition
• climate monitoring

Hindering:

• climate ( too dry  for successful crop farming)
• land ownership (apartheid laws)
• soils (infertile, steep, soil erosion)
• trade (subsidies)

importance of food security

• food security is when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life

• droughts and floods incres food prices
• economic problems
• mismanagment and poor governance
• HIV/AIDS
• poverty
• population growth

Contribution of mining to the SA economy

• SA worlds biggest producer of platinum, leading producer of gold, diamonds base metals and coal.
• SA holds biggest reserves of gold platinum group metals, chrome and manganese
• proportional contribution has decreased, but still has a critical part

Significance of mining to development of SA

• cities
• eskom and sasol
• technology
• taxes
• infrastructure
• manufacturing
• labour
• exports

forward + backward linkages - demand for raw materials, creating raw materials for other industries

• Resulted in establishment of JSE
• Benefication - crushing and separating ore into valuable substances or waste, at least partial processing- increases concentration, and therefore value
• largest contributor to BEE

Factors that favour or hinder mining in SA

Favour

• power
• labour
• technology
• raw materials
• infrastructure
• government
• markets
• capital
• benefication

Hindering:

• distances
• dependance on foreign markets
• water
• acid mine drainage
• pollution
• climate
• fluctuating prices
• labour
• minerals are non renewable
• accidents
• power
• HIV/AIDS

Contribution to the economy

secondary

• 14% to GDP
• agri-processing, automotive, chemicals, ICT, metals, textiles, construction

tertiary

• 79% to GDP
• water supply, transport, education, electricity, financial services, health services, intrenational trade

types of industries

• heavy
• light
• raw mterial orientated
• market orientated
• footloose industry
• ubiquitous industries
• bridge (break of bulk)
• high-tech industries
• link industry

factors influencing indistrial development in SA

• energy
• raw materials
• labour supply
• transport infrastructure 
• political intervention
• competition and trade
• fluctuating rand value

Gauteng

factors influencing its location

• raw materials
• labour supply
• markets
• power
• transport
• political intervention
• water
• climate

limits to growth

• pollution
• water
• services
• roads
• harbours

Durban-Pinetown

factors influencing its location

• harbour
• labour
• market
• climate
• transport
• water
• power

limits to growth

• harbour now congested
• lack of space

South Western Cape

factors influencing its location

• history
• harbour
• labour
• market
• raw materials
• power
• transport

limits to growth

• water
• market
• power
• raw materials
• transport

Port Elizabth-Uitenhage

factors influencing its location

• harbour
• raw materials
• market
• labour
• water
• transport
• government

limits to growth

• power
• labour
• market

the homelands had very few job opportunities, so boarder industries were developed. Incentives were offered to encourage facories to move to areas boadering the homelands

the aim of this was to stop or reverse the movement of black people to white areas. 

Strategies since 1994

• RDP (Reconstruction and Development Programme)
• SDI's (Spatial  Development Initiatives)
• GEAR ( Growth, Employment and Redistribution)
• BEE
• IDZ's (Industrial Development Zones)
• Asgi-SA (Accelerated and Shared Growth Initiative)
• SEZ's ( Special Economic Zones)

CHallenges facing SA's informal sector

• income is low + irregular
• lack the potential for growth
• limited access to raw materials
• often work outdoors
• little time or incentive to improve education
• no benefits (sick leave)
• may be illegal
• increasing competition
• may be subject to xenephobia

Possible solutions

• set aside formal areas for this type of activity
• permit and license system
• fines for no permit, littering or selling in non-designated areas
• encourage formal businesses to offer training in business skills