Background Note: South Africa
PROFILE
OFFICIAL NAME:
Geography
Area: 1.2 million sq. km. (470,462 sq. mi.).
Cities: Capitals--administrative, Pretoria; legislative, Cape Town; judicial, Bloemfontein. Other cities--Johannesburg, Durban, Port Elizabeth.
Terrain: Plateau, savanna, desert, mountains, coastal plains.
Climate: moderate; similar to southern California.
People
Nationality: Noun and adjective--South African(s).
Annual growth rate (2006 World Bank Group): 1.1%.
Population (2007, 47.9 million): Composition--black 79.7%; white 9.1%; colored 8.8%; Asian (Indian) 2.2%. Official figures from 2007 South African Census at http://www.statssa.gov.za.
Languages: Afrikaans, English, isiNdebele, isiXhosa, isiZulu, Sepedi, Sesotho, Setswana, siSwati, Tshivenda, and
Xitsonga (all official languages).
Religions: Predominantly Christian; traditional African, Hindu, Muslim, Jewish.
Education: Years compulsory--7-15 years of age for all children. The South African Schools Act, Act 84 of 1996, passed by Parliament in 1996, aims
to achieve greater educational opportunities for black children, mandating a single syllabus and more equitable funding
for schools.
Health: Infant mortality rate (2007)--58 per 1,000 live births. Life expectancy--52 yrs. women; 49 yrs. men. Health data from 2007 Census Report: http://www.statssa.gov.za.
Government
Type: Parliamentary democracy.
Independence: The Union of South Africa was created on May 31, 1910; became sovereign state within British Empire in
1934; became a republic on May 31, 1961; left the Commonwealth in October 1968; rejoined the Commonwealth in June 1994.
Constitution: Entered into force February 3, 1997.
Branches: Executive--president (chief of state) elected to a 5-year term by the National Assembly. Legislative--bicameral Parliament consisting of 490 members in two chambers. National Assembly (400 members) elected by a system of
proportional representation. National Council of Provinces consisting of 90 delegates (10 from each province) and 10
nonvoting delegates representing local government. Judicial--Constitutional Court interprets and decides constitutional issues; Supreme Court of Appeal is the highest court for
interpreting and deciding nonconstitutional matters.
Administrative subdivisions: Nine provinces: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Mpumalanga, North-West,
Northern Cape, Limpopo, Western Cape.
Political parties: African National Congress (ANC), Democratic Alliance (DA), Inkatha Freedom Party (IFP), Vryheidsfront
Plus/Freedom Front Plus (FF+), Pan-African Congress (PAC), African Christian Democratic Party (ACDP), United Democratic
Movement (UDM), and Azanian Peoples Organization (Azapo).
Suffrage: Citizens and permanent residents 18 and older.
Economy
GDP (2007): $283 billion.
Real GDP growth rate (2007): 5.1%.
GDP per capita (2007): $5,900.
Unemployment (September 2007): 23%.
Natural resources: Almost all essential commodities, except petroleum products and bauxite. Only country in the world
that manufactures fuel from coal.
Industry: Types--minerals, mining, motor vehicles and parts, machinery, textiles, chemicals, fertilizer, information technology,
electronics, other manufacturing, and agro-processing.
Trade (2007): Exports--$69.7 billion; merchandise exports: gold, other minerals and metals, agricultural products, motor vehicles and parts. Major markets--U.S., Japan, Germany, U.K., East Asia, Sub-Saharan Africa. Imports--$79.7 billion: machinery, transport equipment, chemicals, petroleum products, textiles, and scientific instruments. Major suppliers--Germany, China, U.S., Japan, U.K.
GDP composition (2007): Agriculture and mining (primary sector)--8%; industry (secondary sector)--22%; services (tertiary sector)--70%. World's largest producer of platinum, gold, and chromium; also significant coal production.
PEOPLE
Until 1991, South African law divided the population into four major racial categories: Africans (black), whites,
coloreds, and Asians. Although this law has been abolished, many South Africans still view themselves and each other
according to these categories. Black Africans comprise about 80% of the population and are divided into a number of
different ethnic groups. Whites comprise just over 9% of the population. They are primarily descendants of Dutch,
French, English, and German settlers who began arriving at the Cape of Good Hope in the late 17th century. Coloreds are
mixed-race people primarily descending from the earliest settlers and the indigenous peoples. They comprise about 9% of
the total population. Asians are descended from Indian workers brought to South Africa in the mid-19th century to work
on the sugar estates in Natal. They constitute about 2.2% of the population and are concentrated in the KwaZulu-Natal
Province.
Education is in transition. Under the apartheid system schools were segregated, and the quantity and quality of
education varied significantly across racial groups. The laws governing this segregation have been abolished. The long
and arduous process of restructuring the country's educational system is ongoing. The challenge is to create a single,
nondiscriminatory, nonracial system that offers the same standards of education to all people.
HISTORY
People have inhabited southern Africa for thousands of years. Members of the Khoisan language groups are the oldest
surviving inhabitants of the land, but only a few are left in South Africa today--and they are located in the western
sections. Most of today's black South Africans belong to the Bantu language group, which migrated south from central
Africa, settling in the Transvaal region sometime before AD 100. The Nguni, ancestors of the Zulu and Xhosa, occupied
most of the eastern coast by 1500.
The Portuguese were the first Europeans to reach the Cape of Good Hope, arriving in 1488. However, permanent white
settlement did not begin until 1652 when the Dutch East India Company established a provisioning station on the Cape. In
subsequent decades, French Huguenot refugees, the Dutch, and Germans began to settle in the Cape. Collectively, they
form the Afrikaner segment of today's population. The establishment of these settlements had far-reaching social and
political effects on the groups already settled in the area, leading to upheaval in these societies and the subjugation
of their people.
By 1779, European settlements extended throughout the southern part of the Cape and east toward the Great Fish River. It
was here that Dutch authorities and the Xhosa fought the first frontier war. The British gained control of the Cape of
Good Hope at the end of the 18th century. Subsequent British settlement and rule marked the beginning of a long conflict
between the Afrikaners and the English.
Beginning in 1836, partly to escape British rule and cultural hegemony and partly out of resentment at the recent
abolition of slavery, many Afrikaner farmers (Boers) undertook a northern migration that became known as the "Great
Trek." This movement brought them into contact and conflict with African groups in the area, the most formidable of
which were the Zulus. Under their powerful leader, Shaka (1787-1828), the Zulus conquered most of the territory between
the Drakensberg Mountains and the sea (now KwaZulu-Natal).
In 1828, Shaka was assassinated and replaced by his half-brother Dingane. In 1838, Dingane was defeated and deported by
the Voortrekkers (people of the Great Trek) at the battle of Blood River. The Zulus, nonetheless, remained a potent
force, defeating the British in the historic battle of Isandhlwana before themselves being finally conquered in 1879.
In 1852 and 1854, the independent Boer Republics of the Transvaal and Orange Free State were created. Relations between
the republics and the British Government were strained. The discovery of diamonds at Kimberley in 1870 and the discovery
of large gold deposits in the Witwatersrand region of the Transvaal in 1886 caused an influx of European (mainly
British) immigration and investment. In addition to resident black Africans, many blacks from neighboring countries also
moved into the area to work in the mines. The construction by mine owners of hostels to house and control their workers
set patterns that later extended throughout the region.
Boer reactions to this influx and British political intrigues led to the Anglo-Boer Wars of 1880-81 and 1899-1902.
British forces prevailed in the conflict, and the republics were incorporated into the British Empire. In May 1910, the
two republics and the British colonies of the Cape and Natal formed the Union of South Africa, a self-governing dominion
of the British Empire. The Union's constitution kept all political power in the hands of whites.
In 1912, the South Africa Native National Congress was founded in Bloemfontein and eventually became known as the
African National Congress (ANC). Its goals were the elimination of restrictions based on color and the enfranchisement
of and parliamentary representation for blacks. Despite these efforts the government continued to pass laws limiting the
rights and freedoms of blacks.
In 1948, the National Party (NP) won the all-white elections and began passing legislation codifying and enforcing an
even stricter policy of white domination and racial separation known as "apartheid" (separateness). In the early 1960s,
following a protest in Sharpeville in which 69 protesters were killed by police and 180 injured, the ANC and Pan-African
Congress (PAC) were banned. Nelson Mandela and many other anti-apartheid leaders were convicted and imprisoned on
charges of treason.
The ANC and PAC were forced underground and fought apartheid through guerrilla warfare and sabotage. In May 1961, South
Africa relinquished its dominion status and declared itself a republic. It withdrew from the Commonwealth in part
because of international protests against apartheid. In 1984, a new constitution came into effect in which whites
allowed coloreds and Asians a limited role in the national government and control over their own affairs in certain
areas. Ultimately, however, all power remained in white hands. Blacks remained effectively disenfranchised.
Popular uprisings in black and colored townships in 1976 and 1985 helped to convince some NP members of the need for
change. Secret discussions between those members and Nelson Mandela began in 1986. In February 1990, State President
F.W. de Klerk, who had come to power in September 1989, announced the unbanning of the ANC, the PAC, and all other
anti-apartheid groups. Two weeks later, Nelson Mandela was released from prison.
In 1991, the Group Areas Act, Land Acts, and the Population Registration Act--the last of the so-called "pillars of
apartheid"--were abolished. A long series of negotiations ensued, resulting in a new constitution promulgated into law
in December 1993. The country's first nonracial elections were held on April 26-28, 1994, resulting in the installation
of Nelson Mandela as President on May 10, 1994.
Following the 1994 elections, South Africa was governed under an interim constitution establishing a Government of
National Unity (GNU). This constitution required the Constitutional Assembly (CA) to draft and approve a permanent
constitution by May 9, 1996. After review by the Constitutional Court and intensive negotiations within the CA, the
Constitutional Court certified a revised draft on December 2, 1996. President Mandela signed the new constitution into
law on December 10, and it entered into force on February 3, 1997. The GNU ostensibly remained in effect until the 1999
national elections. The parties originally comprising the GNU--the ANC, the NP, and the Inkatha Freedom Party
(IFP)--shared executive power. On June 30, 1996, the NP withdrew from the GNU to become part of the opposition.
During Nelson Mandela's 5-year term as President of South Africa, the government committed itself to reforming the
country. The ANC-led government focused on social issues that were neglected during the apartheid era such as
unemployment, housing shortages, and crime. Mandela's administration began to reintroduce South Africa into the global
economy by implementing a market-driven economic plan known as Growth, Employment and Redistribution (GEAR). In order to
heal the wounds created by apartheid, the government created the Truth and Reconciliation Commission (TRC) under the
leadership of Archbishop Desmond Tutu. During the first term of the ANC's post-apartheid rule, President Mandela
concentrated on national reconciliation, seeking to forge a single South African identity and sense of purpose among a
diverse and splintered populace, riven by years of conflict. The diminution of political violence after 1994 and its
virtual disappearance by 1996 were testament to the abilities of Mandela to achieve this difficult goal.
Nelson Mandela stepped down as President of the ANC at the party's national congress in December 1997, when Thabo Mbeki
assumed the mantle of leadership. Mbeki won the presidency of South Africa after national elections in 1999, when the
ANC won just shy of a two-thirds majority in Parliament. President Mbeki shifted the focus of government from
reconciliation to transformation, particularly on the economic front. With political transformation and the foundation
of a strong democratic system in place after two free and fair national elections, the ANC recognized the need to focus
on bringing economic power to the black majority in South Africa. In April 2004, the ANC won nearly 70% of the national
vote, and Mbeki was reelected for his second 5-year term. In his 2004 State of the Nation address, Mbeki promised his
government would reduce poverty, stimulate economic growth, and fight crime. Mbeki said that the government would play a
more prominent role in economic development. Despite the fact that he was prevented by term limits from running for a
third term as State President, Mbeki ran for a third term as ANC chair in party elections in December 2007. He was
defeated by Jacob Zuma, an ANC stalwart with a populist following, a result that signaled widespread dissatisfaction
with Mbeki's remote governing style, and his government's failure to adequately address poverty and other development
issues. On September 20, 2008, Mbeki was "recalled" by the ANC and replaced by Kgalema Motlanthe as President on
September 25. Motlanthe will serve the remainder of Mbeki's terms until national elections are held in April 2009.
GOVERNMENT AND POLITICAL CONDITIONS
South Africa is a multiparty parliamentary democracy in which constitutional power is shared between the president and
the Parliament.
The Parliament consists of two houses, the National Assembly and the National Council of Provinces, which are
responsible for drafting the laws of the republic. The National Assembly also has specific control over bills relating
to monetary matters. The current 400-member National Assembly was retained under the 1997 constitution, although the
constitution allows for a range of between 350 and 400 members. The Assembly is elected by a system of "list
proportional representation." Each of the parties appearing on the ballot submits a rank-ordered list of candidates. The
voters then cast their ballots for a party.
Seats in the Assembly are allocated based on the percentage of votes each party receives. In the 2004 elections, the ANC
won 279 seats in the Assembly, more than a two-thirds majority and an increase of 13 seats from 1999; the Democratic
Alliance (DA) won 50, the IFP 28, the New National Party (NNP) 7, the United Democratic Movement (UDM) 9, and other
groups won the remaining 27. In the 2004 electoral campaign, the ANC aligned with the NNP, and the DA aligned with the
IFP. Shortly afterward, the NNP announced that it would merge with the ANC. A new Assembly will be elected in 2009.
The National Council of Provinces (NCOP) consists of 90 members, 10 from each of the nine provinces. The NCOP replaced
the former Senate as the second chamber of Parliament and was created to give a greater voice to provincial interests.
It must approve legislation that involves shared national and provincial competencies as defined by an annex to the
constitution. Each provincial delegation consists of six permanent and four rotating delegates.
The president is the head of state, and is elected by the National Assembly from among its members. Following the April
14, 2004 elections, the Assembly reelected Thabo Mbeki as President. The president's constitutional responsibilities
include assigning cabinet portfolios, signing bills into law, and serving as commander in chief of the military. The
president works closely with the deputy president and the cabinet. On June 14, 2005, President Mbeki informed the South
African Parliament that then-Deputy President Jacob Zuma was being "released" from his duties following the conviction
of a close associate on corruption charges relating to monetary payments to Zuma. On June 22, Mbeki named former
Minister for Minerals and Energy Phumzile Mlambo-Ngcuka to the position of Deputy President, the first woman to hold
this office.
On December 18, 2007, the African National Congress elected Jacob Zuma to the post of ANC President after a hard-fought
campaign between Zuma and Thabo Mbeki. Despite this victory, Mbeki remains the country's President despite a shake-up in
the composition of the ANC National Executive Committee membership.
The third arm of the central government is an independent judiciary. The Constitutional Court is the highest court for
interpreting and deciding constitutional issues, while the Supreme Court of Appeal is the highest court for
nonconstitutional matters. Most cases are heard in the extensive system of High Courts and Magistrates Courts. The
constitution's bill of rights provides for due process including the right to a fair, public trial within a reasonable
time of being charged and the right to appeal to a higher court. The bill of rights also guarantees fundamental
political and social rights of South Africa's citizens.
Challenges Ahead
South Africa's post-apartheid governments have made remarkable progress in consolidating the nation's peaceful
transition to democracy. Programs to improve the delivery of essential social services to the majority of the population
are underway. Access to better opportunities in education and business is becoming more widespread. Nevertheless,
transforming South Africa's society to remove the legacy of apartheid will be a long-term process requiring the
sustained commitment of the leaders and people of the nation's disparate groups.
The Truth and Reconciliation Commission (TRC), chaired by 1984 Nobel Peace Prize winner Archbishop Desmond Tutu, helped
to advance the reconciliation process. Constituted in 1996 and having completed its work by 2001, the TRC was empowered
to investigate apartheid-era human rights abuses committed between 1960 and May 10, 1994; to grant amnesty to those who
committed politically motivated crimes; and to recommend compensation to victims of abuses. In November 2003, the
government began allocation of $4,600 (R30,000) reparations to individual apartheid victims. The TRC's mandate was part
of the larger process of reconciling the often conflicting political, economic, and cultural interests held by the many
peoples that make up South Africa's diverse population. The ability of the government and people to agree on many basic
questions of how to order the country's society will remain a critical challenge.
One important issue continues to be the relationship of provincial and local administrative structures to the national
government. Prior to April 27, 1994, South Africa was divided into four provinces and 10 black "homelands," four of
which were considered independent by the South African Government. Both the interim constitution and the 1997
constitution abolished this system and substituted nine provinces. Each province has an elected legislature and chief
executive--the provincial premier. Although in form a federal system, in practice the nature of the relationship between
the central and provincial governments continues to be the subject of considerable debate, particularly among groups
desiring a greater measure of autonomy from the central government. A key step in defining the relationship came in 1997
when provincial governments were given more than half of central government funding and permitted to develop and manage
their own budgets. However, the national government exerts a measure of control over provinces by appointing provincial
premiers.
Although South Africa's economy is in many areas highly developed, the exclusionary nature of apartheid and distortions
caused in part by the country's international isolation until the 1990s have left major weaknesses. The economy is in a
process of transition as the government seeks to address the inequities of apartheid, stimulate growth, and create jobs.
Business, meanwhile, is becoming more integrated into the international system, and foreign investment has increased.
Still, the economic disparities between population groups are expected to persist for many years, remaining an area of
priority attention for the government.
Human Rights
The 1997 constitution's bill of rights provides extensive guarantees, including equality before the law and prohibitions
against discrimination; the right to life, privacy, property, and freedom and security of the person; prohibition
against slavery and forced labor; and freedom of speech, religion, assembly, and association. The legal rights of
criminal suspects also are enumerated, as are citizens' entitlements to a safe environment, housing, education, and
health care. The constitution provides for an independent and impartial judiciary, and, in practice, these provisions
are respected.
Since the abolition of apartheid, levels of political violence in South Africa have dropped dramatically. Violent crime
and organized criminal activity are at high levels and are a grave concern. Partly as a result, vigilante action and mob
justice sometimes occur.
Some members of the police commit abuses, and deaths in police custody as a result of excessive force remain a problem.
The government has taken action to investigate and punish some of those who commit such abuses. In April 1997, the
government established an Independent Complaints Directorate to investigate deaths in police custody and deaths
resulting from police action.
Although South Africa's society is undergoing a rapid transformation, some discrimination against women continues, and
discrimination against those living with HIV/AIDS remains. Violence against women and children also is a serious
problem.
Principal Government Officials
State President--Kgalema Petrus Motlanthe
Executive Deputy President--Baleka Mbete
Ministers
Agriculture and Land Affairs--L. Xingwana
Arts and Culture--Pallo Jordan
Communications--Ivy Matsepe-Casaburri
Correctional Services--Ngconde Balfour
Defense--Charles Nqakula
Education--Naledi Pandor
Environmental Affairs and Tourism--Marthinus van Schalkwyk
Finance--Trevor Manuel
Foreign Affairs--Nkosazana Dlamini-Zuma
Health--Barbara Hogan
Home Affairs--Nosiviwe Mapisa-Nqakula
Housing--Lindiwe Sisulu
Intelligence--Siyabonga Cwele
Justice and Constitutional Development--Enver Surty
Labor--Membathisi Mdladlana
Minerals and Energy--Buyelwa Sonjica
Provincial and Local Government--S. Shiceka
Public Enterprises--Brigitte Mabandla
Public Service and Administration--Richard Baloyi
Public Works--Geoff Q. M. Doidge
Safety and Security--E. Nathi Mthethwa
Science and Technology--Mosibudi Mangena
Social Development--Zola Skweyiya
Sport and Recreation--Makhenkesi Stofile
The Presidency--Manto Tshabalala-Msimang
Trade and Industry--Mandisi Mpahlwa
Transport--Jeff Radebe
Water Affairs and Forestry--LB Hendricks
The Republic of South Africa maintains an embassy in the United States at 3051 Massachusetts Avenue NW, Washington, DC 20008; tel. (202) 232-4400.
ECONOMY
South Africa has a two-tiered economy; one rivaling other developed countries and the other with only the most basic
infrastructure. It therefore is a productive and industrialized economy that exhibits many characteristics associated
with developing countries, including a division of labor between formal and informal sectors, and uneven distribution of
wealth and income. The formal sector, based on mining, manufacturing, services, and agriculture, is well developed.
The transition to a democratic, nonracial government, begun in early 1990, stimulated a debate on the direction of
economic policies to achieve sustained economic growth while at the same time redressing the socioeconomic disparities
created by apartheid. The Government of National Unity's initial blueprint to address this problem was the
Reconstruction and Development Program (RDP). The RDP was designed to create programs to improve the standard of living
for the majority of the population by providing housing--a planned 1 million new homes in 5 years--basic services,
education, and health care. While a specific "ministry" for the RDP no longer exists, a number of government ministries
and offices are charged with supporting RDP programs and goals.
The Government of South Africa demonstrated its commitment to open markets, privatization, and a favorable investment
climate with its release of the crucial Growth, Employment and Redistribution (GEAR) strategy--the neoliberal economic
strategy to cover 1996-2000. The strategy had mixed success. It brought greater financial discipline and macroeconomic
stability but failed to deliver in key areas. Formal employment continued to decline, and despite the ongoing efforts of
black empowerment and signs of a fledgling black middle class and social mobility, the country's wealth remains very
unequally distributed along racial lines. However, South Africa's budgetary reforms such as the Medium-Term Expenditure
Framework and the Public Finance Management Act--which aims at better reporting, auditing, and increased
accountability--and the structural changes to its monetary policy framework, including inflation targeting, have created
transparency and predictability and are widely acclaimed. Trade liberalization also has progressed substantially since
the early 1990s. South Africa reduced its import-weighted average tariff rate from more than 20% in 1994 to 7% in 2002.
These efforts, together with South Africa's implementation of its World Trade Organization (WTO) obligations and its
constructive role in launching the Doha Development Round, show South Africa's acceptance of free market principles.
Financial Policy
South Africa has a sophisticated financial structure with a large and active stock exchange that ranks 17th in the world
in terms of total market capitalization. The South African Reserve Bank (SARB) performs all central banking functions.
The SARB is independent and operates in much the same way as Western central banks, influencing interest rates and
controlling liquidity through its interest rates on funds provided to private sector banks. Quantitative credit controls
and administrative control of deposit and lending rates have largely disappeared. South African banks adhere to the Bank
of International Standards core standards.
The South African Government has taken steps to gradually reduce remaining foreign exchange controls, which apply only
to South African residents. Private citizens are now allowed a one-time investment of up to 750,000 rand (R) in offshore
accounts. Since 2001, South African companies may invest up to R750 million in Africa and R500 million elsewhere.
Trade and Investment
South Africa has rich mineral resources. It is the world's largest producer and exporter of gold and platinum and also
exports a significant amount of coal. During 2000, platinum overtook gold as South Africa's largest foreign exchange
earner. The value-added processing of minerals to produce ferroalloys, stainless steels, and similar products is a major
industry and an important growth area. The country's diverse manufacturing industry is a world leader in several
specialized sectors, including railway rolling stock, synthetic fuels, and mining equipment and machinery.
Primary agriculture accounts for about 4% of the gross domestic product. Major crops include citrus and deciduous
fruits, corn, wheat, dairy products, sugarcane, tobacco, wine, and wool. South Africa has many developed irrigation
schemes and is a net exporter of food.
South Africa's transportation infrastructure is well-developed, supporting both domestic and regional needs. The
Johannesburg International Airport serves as a hub for flights to other southern African countries. The domestic
telecommunications infrastructure provides modern and efficient service to urban areas, including cellular and Internet
services. In 1997, Telkom, the South African telecommunications parastatal, was partly privatized and entered into a
strategic equity partnership with a consortium of two companies, including SBC (now AT), a U.S. telecommunications company. In exchange for exclusivity to provide certain services for 5 years, Telkom
assumed an obligation to facilitate network modernization and expansion into unserved areas. The government is
evaluating a proposal to establish a second network operator to compete with Telkom across its spectrum of services.
Three cellular companies provide service to over 9 million subscribers.
South Africa's GDP is expected to increase gradually during the next few years, and 2007 estimated growth was 5.1%.
Annual GDP growth between 1994 and 2004 averaged 3.0%. In 2003, real GDP growth slowed to a rate of 2.8%, but increased
to 3.7% in 2004. The government estimates that the economy must achieve growth at a minimum of 6% to offset
unemployment, which was estimated at 23% in September 2007, although unofficial sources put it as high as 41%. In an
effort to boost economic growth and spur job creation, the government has launched special investment corridors to
promote development in specific regions and also is working to encourage small, medium, and microenterprise development.
One of the great successes of the ANC government has been to get consumer inflation, which had been running in the
double digits for over 20 years, under control. By 1998, inflation had fallen to 6.9%, and in 1999 and 2000 inflation
was running at less than 60%. The rand's rapid depreciation in late 2001, however, led to greater inflationary pressure,
causing 2002 inflation of 9.2%. The South African Government cut the inflation rate to 4% in 2004, and the rand
appreciated 39% from 2002 to 2004. The South African Reserve Bank increased interest rates, which along with the 28%
rand appreciation in 2003 led to a reduced consumer inflation of 5.8%. The government also has made inroads into
reducing the fiscal deficit and increasing foreign currency reserves. The government deficit was 1.1% of GDP in 2002 and
2.6% in 2003. The government's 2005 budget called for a moderate increase in spending to promote faster growth and
poverty alleviation, while curbing budget deficits.
Exports amounted to 24.6% of GDP in 2007. South Africa's major trading partners include the United Kingdom, the United
States, Germany, Italy, Belgium, and Japan. South Africa's trade with other Sub-Saharan African countries, particularly
those in the southern Africa region, has increased substantially. South Africa is a member of the Southern African
Customs Union (SACU) and the Southern African Development Community (SADC). In August 1996, South Africa signed a
regional trade protocol agreement with its SADC partners. The agreement was ratified in December 1999, and
implementation began in September 2000. It aims to provide duty-free treatment for 85% of trade by 2008 and 100% by
2012.
South Africa has made great progress in dismantling its old economic system, which was based on import substitution,
high tariffs and subsidies, anticompetitive behavior, and extensive government intervention in the economy. The
leadership has moved to reduce the government's role in the economy and to promote private sector investment and
competition. It has significantly reduced tariffs and export subsidies, loosened exchange controls, cut the secondary
tax on corporate dividends, and improved enforcement of intellectual property laws. A competition law was passed and
became effective on September 1, 1999. A U.S.-South Africa bilateral tax treaty went into effect on January 1, 1998, and
a bilateral trade and investment framework agreement was signed in February 1999.
South Africa is a member of the World Trade Organization (WTO). U.S. products qualify for South Africa's
most-favored-nation tariff rates. South Africa also is an eligible country for the benefits under the African Growth and
Opportunity Act (AGOA), and most of its products can enter the United States market duty free. South Africa has done
away with most import permits except on used products and products regulated by international treaties. It also remains
committed to the simplification and continued reduction of tariffs within the WTO framework and maintains active
discussions with that body and its major trading partners.
As a result of a November 1993 bilateral agreement, the Overseas Private Investment Corporation (OPIC) can assist U.S.
investors in the South African market with services such as political risk insurance and loans and loan guarantees. In
July 1996, the United States and South Africa signed an investment fund protocol for a $120 million OPIC fund to make
equity investments in South Africa and southern Africa. The Trade and Development Agency also has been actively involved
in funding feasibility studies and identifying investment opportunities in South Africa for U.S. businesses.
HIV/AIDS
South Africa is one of the countries most affected by HIV, with 5.3 million HIV infected individuals. Nineteen percent
of the 15-49 year old population is infected, and in parts of the country more than 35% of women of childbearing age are
infected. Overall, 11-12% of the population is infected. About 1,700 new infections occur each day, and approximately
40% of deaths are believed to be AIDS-related. There are approximately 660,000 children who have lost one or both
parents, and by 2008 1.6 million children will have been orphaned by AIDS. Without effective prevention and treatment
5-7 million cumulative AIDS deaths are anticipated by 2010 (with 1.5 million deaths in 2010 alone), and there will be
over 1 million sick with AIDS. The epidemic could cost South Africa as much as 17% in GDP growth by 2010. The extraction
industries, education, and health are among the sectors that will be severely affected. A 2003 national operational plan
provides the structure for a comprehensive response to HIV and AIDS, including a national rollout of antiretroviral
therapy.
Environment
South Africa's government is committed to managing the country's rich and varied natural resources in a responsible and
sustainable manner. In addition, numerous South African non-governmental organizations have emerged as a potent force in
the public policy debate on the environment. In international environmental organizations, South Africa is seen as a key
leader among developing countries on issues such as climate change, conservation, and biodiversity. This leading role
was underscored by South Africa's selection to host the World Summit on Sustainable Development in 2002.
FOREIGN RELATIONS
South African forces fought on the Allied side in World Wars I and II and participated in the postwar UN force in Korea.
South Africa was a founding member of the League of Nations and in 1927 established a Department of External Affairs
with diplomatic missions in the main west European countries and in the United States. At the founding of the League of
Nations, South Africa was given the mandate to govern Southwest Africa, now Namibia, which had been a German colony
before World War I. In 1990, Namibia attained independence, with the exception of the enclave of Walvis Bay, which was
reintegrated into Namibia in March 1994. After South Africa held its first nonracial election in April 1994, most
sanctions imposed by the international community in opposition to the system of apartheid were lifted. On June 1, 1994,
South Africa rejoined the Commonwealth, and on June 23, 1994, the UN General Assembly accepted its credentials. South
Africa served as the African Union's (AU) first president from July 2003 to July 2004.
Having emerged from the international isolation of the apartheid era, South Africa has become a leading international
actor. Its principal foreign policy objective is to promote the economic, political, and cultural regeneration of
Africa, through the New Partnership for African Development (NEPAD); to promote the peaceful resolution of conflict in
Africa; and to use multilateral bodies to insure that developing countries' voices are heard on international issues.
South Africa has played a key role in seeking an end to various conflicts and political crises on the African continent,
including in Burundi, the Democratic Republic of the Congo, and Comoros. South Africa has pursued "quiet diplomacy" in
its approach to the crisis in Zimbabwe.
U.S.-SOUTH AFRICAN RELATIONS
The United States has maintained an official presence in South Africa since 1799, when an American consulate was opened
in Cape Town. The U.S. Embassy is located in Pretoria, and Consulates General are in Johannesburg, Durban, and Cape
Town. Americans and South Africans also have many nongovernmental ties; for example, black and white American
missionaries have a long history of activity in South Africa. South Africans (particularly the ANC leadership) also
acknowledge support from and ties to the anti-apartheid movement in the U.S.
From the 1970s through the early 1990s, U.S.-South Africa relations were severely affected by South Africa's racial
policies. However, since the abolition of apartheid and democratic elections of April 1994, the United States has
enjoyed an excellent bilateral relationship with South Africa. Although there are differences of position between the
two governments, mainly on political issues, these do not impede cooperation on a broad range of key issues. Bilateral
cooperation in counter-terrorism, fighting HIV/AIDS, and military relations has been particularly positive. U.S.-South
African economic and trade relations are strong. Through the U.S. Agency for International Development (USAID), the United States also provides assistance to South Africa to help it meet its development goals. Peace Corps volunteers began working in South Africa in 1997.
Principal U.S. Officials
Ambassador--Eric M. Bost
Deputy Chief of Mission--Helen LaLime
Commercial Counselor--Craig Allen
Economic Counselor--Perry Ball
Political Counselor--Raymond L. Brown
Management Counselor--Russell LeClair
Public Affairs Counselor--Mary Deane Conners
Defense and Air Attache--Colonel Kelly Langdorf
USAID Director--Carleene Dei
Agricultural Attache--Scott Reynolds
Health Attache--Mary Fanning
Country Consular Coordinator--Doron Bard
Consul General Cape Town--Alberta Mayberry
Consul General Durban--Jill Derderian
Consul General Johannesburg--Andrew Passen
The U.S. Embassy in South Africa is located at 877 Pretorius St, Pretoria; PO Box 9536, Pretoria 0001; tel: (27-12) 431-4000; fax:
(27-12) 342-2299.
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through
Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health
conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates
abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions
overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation
is dangerous or unstable.
For the latest security information, Americans living and traveling abroad should regularly monitor the Department's
Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.
The Department of State encourages all U.S. citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known
in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security
conditions.
Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the
U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the US. and Canada.
The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information.
Telephone: 1-877-4-USA-PPT (1-877-487-2778); TDD/TTY: 1-888-874-7793. Passport information is available 24 hours, 7 days
a week. You may speak with a representative Monday-Friday, 8 a.m. to 10 pm., Eastern Time, excluding federal holidays.
Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta,
Georgia. A hotline at 800-CDC-INFO (800-232-4636) and a web site at http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking
water safety for regions and countries. The CDC publication "Health Information for International Travel" can be found
at http://wwwn.cdc.gov/travel/contentYellowBook.aspx.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and
regional news that impact U.S. companies working abroad through its website http://www.osac.gov
Export.gov provides a portal to all export-related assistance and market information offered by the federal government and
provides trade leads, free export counseling, help with the export process, and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade
information from the Federal government. The site includes current and historical trade-related releases, international
market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.
ENDS