 Why is South Africa very rich and proud? South Africa has a diverse ecosystem due to its location on the African continent's southernmost tip. Kruger National Park, an inland safari destination, is teeming with big game. The Western Cape has beaches, rich windlands around Stellenbosch and Parle, rugged cliffs at the Cape of Good Hope, forest and lagoons along the garden route, and the metropolis of Cape Town, which sits beneath flat-topped Table Mountain. South Africa is rich in a variety of minerals. In addition to diamonds and gold, the country's deposits include iron ore, platinum, manganese, chromium, copper, uranium, silver, beryllium, and titanium. Although no economically exploitable petroleum deposits have been discovered, there is some natural gas off the southern coast, and synthetic fuel is produced from coal at two massive plants in the Free State and Pumilanga provinces. Although manufacturing has employed more people and produced a greater proportion of gross domestic product, GDP for decades, the mining sector remains the heart of the South African economy as mining-focused holding companies invest in other economic activity. In today's video, we'll take you on a tour of South Africa to discover why the country is so wealthy in comparison to other African countries. The riches will be evaluated based on the economy, the manufacturing industry, and a variety of other factors. If this is your first time joining us, please subscribe to this channel for more updates. The Economy of South Africa South Africa's economy is the continent's second largest, as well as the continent's most industrialized, technologically advanced, and diverse economy. South Africa is one of just eight countries in Africa with an upper-middle-income economy. Following the lifting of international sanctions in 1996, South Africa's gross domestic product, nominal, nearly tripled, reaching a high of $416 billion in 2011. Within two decades of the end of apartheid foreign exchange reserves expanded from $3 billion to approximately $50 billion, resulting in a diversified economy with a growing and sizable middle class. Although the natural resource extraction industry remains one of the country's largest, contributing $13.5 billion to GDP annually, South Africa's economy has diversified since the end of apartheid with a focus on services. In 2019, the financial sector contributed $41.4 billion to South Africa's GDP. In 2021, South African financial institutions will manage approximately $1.41 trillion in assets. The Johannesburg Stock Exchange's total market capitalization was $1.2 trillion as of October 2021. South Africa's state-owned enterprises, SOEs, are critical to the country's economy, with the government owning a stake in roughly 700 SOEs across a wide range of industries. In 2016, the top five barriers to doing business in the country were inefficient government bureaucracy, tight labor restrictions, a shortage of skilled personnel for several high-tech businesses, political instability and corruption. The banking industry, on the other hand, was regarded as a significant positive economic feature. The country is a member of the G20 and the only African country in the organization. Contributions from the mining sector. South Africa is the world's leading producer of platinum and chromium, which are mined in northeastern cities such as Rustenburg and Steelport, and are growing in commercial importance. Massive amounts of platinum group and chromium minerals can be found to the north of Pretoria. The northern Cape province contains the majority of the world's iron ore and manganese resources, and titanium-bearing sands can be found along the east coast. The country also produces uranium, palladium, nickel, copper, antimony, vanadium, floorspar, and limestone. Diamond mining, which was previously concentrated around Kimberley, is now widespread. De Beers' consolidated mines limit it owns a significant portion of the South African diamond industry, which is one of the largest in the world. Contributions from the manufacturing industry. The most important manufacturing sectors are food processing, textiles, metals, and chemical manufacturing. Agriculture and fisheries support a significant amount of activity in canning, sugar refining, and other processing, with more than half of these products exported. From humble beginnings in the production of mining explosives, a massive and complex chemical industry has grown. A coal-based petrochemical sector produces plastics, resins, and industrial chemicals. The metal industry in Gautang gets a lot of its raw materials from the region's iron and steel producers. Aluminum manufacturers and Quasulunatal primarily use imported materials. Automobiles, ships, building materials, electronics, and a wide range of other items, including armaments, are all produced. Though the weapons industry has begun to diversify into non-military production, the post-apartheid government supported a contentious arms export sector when military sanctions were lifted. Manufacturing has always relied heavily on foreign capital. It expanded rapidly in the 1960s and early 1970s, but slowed or even shrank in the 1980s. As mining declines, manufacturing and its demand for foreign capital become even more important for national growth, exports account for roughly one-fourth of total manufacturing output. Financial Growth The South African Reserve Bank, which is the sole issuer of the RAND, the country's currency, has a sophisticated financial system. It is in charge of developing and implementing monetary policy, as well as managing foreign exchange transactions. Merchant, savings, investment, and discount banks, as well as commercial banking, are all registered banking institutions. For example, the Development Bank of Southern Africa is a quasi-governmental organization that promotes development projects. Private pension and provident funds, as well as more than two dozen insurance companies, dominate the financial sector. The Johannesburg Stock Exchange serves as the hub of a thriving capital market. Contributions of trade Because of its reliance on foreign trade, South Africa's economy is vulnerable to global economic conditions. Most important exports have been precious and base metals, though agricultural products and military equipment have also played a significant role. The country's main imports are chemicals, chemical products, and automobiles. South Africa's main trading partners are China, the United States, Germany, and Japan. Regional trade in southern Africa is becoming increasingly important, particularly through the southern African development community. Following the end of apartheid, South African corporations push to expand their involvement in other African countries, particularly in mining and commercial activity. Contributions of tourism Tourism is becoming increasingly important to the South African economy, while African countries receive the majority of visitors, Europe, and the Americas are growing in popularity. Among the various tourist attractions are national and transnational parks. Traveling from South Africa to other African countries is becoming more convenient. Among the most popular tourist attractions are Table Mountain, Robin Island, designated an ESCO World Heritage Site in 1999. The site of an infamous prison and historic sites such as the former diamond mine in Kimberley. The Verita Fort Dome designated a UNESCO World Heritage Site in 2005. The world's oldest and largest meteorite impact site. And the mapping of the resettlement area designated UNESCO World Heritage Site in 2003. The ruins of the important kingdom of the Iron Age. Ecotourism and village tourism, in which visitors can learn about traditional rural culture, are becoming more popular. South Africa has emerged from the contributions of various sectors to dethrone several other African countries and become one of the richest African countries. It is safe to say that investment in a country's various sectors has a significant impact on the country's wealth and development. South Africa is what it is today as a result of its government's significant development efforts. Despite being a wealthy country, efforts are still being made to ensure that it achieves the status of a more economically developed country, MEDC, like the United States, Germany, and many others. Thank you for your time. For more videos on this channel, please like, share, subscribe, leave a comment, and turn on the notification button.