South Africa slipped into a recession during the global economic downturn but with rising commodity prices and renewed demand in its chemical and motor industries and the 2010 World Cup spending helped SA recover from its slump. Today we are seen as a gateway to investment into the rest of the Africa, as there are huge opportunities on the continent because of the oil, gas, mining, agriculture and the more consumer driven products ,making it very attractive for global investment. So by South Africa focusing on improving its own standards and those of the other African countries it should become more attractive to the world and this is why I think South Africa should focus on improving its own continent rather than focusing all its attentions on BRICS and CIVETS. Another example of South Africa being able to stand on its own and not needing BRICS is that the other BRICS countries have shown signs of battling to maintain their growth since the 2008 global financial crisis whereas South Africa, having a more diversified (variety of business sectors) economy is more likely to remain steady. South Africa has also been able to very successfully get their own homegrown brands ( Nandos, MTN, and stanbic Bank) out into the world market place. Our currency is also used officially in Zimbabwe, Botswana, Namibia, Lesotho and Swaziland which has greatly increased trade between these countries.
This shows South Africa’s ability to not need BRICS or CIVETS in order to become an economically viable destination for global investors.
SA stands out for its relatively positive risk rating, as well as our relative size of the economy and overall market, along with ongoing investments being made in fixed capital assets.
South Africa regularly stan...
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...iding a stepping stone into other parts of Africa could seriously rival the BRICs in the decisions of global investors.
As Africa is receiving exceptional attention from large global companies, with the sizeable opportunities in oil and gas, mining and agriculture , followed by consumer-driven demand in the areas of consumer products, telecoms, and others, I believe South Africa needs to focus more on branching into Africa and take full advantage of the new markets opening up in the countries in Africa. We are well positioned on the continent with a decent business infrastructure to pursue new business associations with African countries and facilitate countries abroad. BRICS and Civets are important to us with regards to the global markets so we do need to keep our relationships with them, strong and positive as well as strengthening ties with the rest of Africa.
Priscilla. “The World Economy and Africa.” JSpivey – Home – Wikispaces. 2010. 29 January 2010. .
It is thought-provoking, in the sense that Africa’s need for foreign created a race to the bottom, much like what Pietra Rivoli described in The Travels of a T-Shirt in the Global Economy. Due to some African states’ reliance on foreign aid in order to mine and profit on their resources, they allow business standards to be lowered and for Chinese firms to tip the contracts moresoever in the favor of Chinese firms. This lowers the potential earnings of African states by lowering royalty rates, for example. Additionally, Burgis’ research was thorough and transparent. When he did not receive a response or if his questions were dodged, he made it obvious to the readers. Sure, some could view this book as too anecdotal to be used as a credible source of Africa’s situation. However, this is due to the nature of the system Burgis is writing about; after all, they are shadow states for a reason. Some readers will be saddened by this text, others angry, most curious to learn more, but above all, everyone will be intellectually stimulated and
Africa is the second largest continent in the world and has a thriving population of over 900 million people. In his book Guns Germs and Steel, Jared Diamond explains why he thinks that the West has more cargo than Africa. After reading the first two chapters of his book I found out that I share a lot of the same views as he does. I believe that Africa has so little material wealth compared to the West because of government, economy, disease, and geography or climate. All of these things are big issues in present day Africa and even back in the late 1800's. If we take into consideration an African country such as Zimbabwe and research all of these specific problems happening there we may get a better view on why Africa has very little material wealth compared to the Western world.
Mabanga, T (2015). What Brics can do for South Africa and Africa. Retrieved from September
Zambia is a landlocked country in South-East Africa rich in natural resources, among which copper and cobalt mining, and vast territories, most suitable for agriculture. Throughout the 19th century, Britain colonized Zambia to exploit these resources; in 1889, the British South Africa Company (BSAC) took control of Zambia and begun to mining copper in vast quantities. By the Second World War, Zambia had become the largest importer of copper in Britain. In 1953, Zambia was included in the Central African Federation that was controlled by Britain but allowed Zambians to participate in politics. The federation was stable until 1956 when the price of copper fell and the wages of mining workers decreased. In response to the Britain’s political dominance
Over the past few decades, as China’s economy has grown during its transition into a burgeoning world power, a desire for natural resources, primarily oil, to support this economic boom has led to increasing Chinese involvement and investment in African markets. Since 2009, China has been the African continent’s largest trade partner, having surpassed the United States. Chinese presence in Africa takes the form of a multi-faceted approach, with the Chinese offering developmental loans, investing in agriculture and industry, and funding the construction of public infrastructure such as roads, railways, airports, and hospitals (Council on Foreign Relations).
... behind. This is in relation to not only the Sino-African ties, but also the wider emerging markets as a whole. As it has been discussed how BRIC nations, such as India also pose future threats much along the same lines as China in Africa. For Africa however, it reaches a critical historical junction once again, whereby it must chose its alliances carefully in order to continue to gain economic transformation and socio-political stability. The effectiveness that Africa does this will allow them to distinguish the need for the Sino-African tie, and whether or not in the future other preferable options need to be explored (Abebe, 2013). However, it is clear that Africa and China have a deeply rooted history, and any changes to this would result in much controversy, even if the current typical withstanding superpowers, in the West re-grasp their international footing.
The international community have highlighted the benefits that efficient and effective trade in Africa could potentially hold; the G8 in 2005 (and again in...
The BRICS “has come to symbolize the growing power of the world’s largest emerging e...
...tries. These ideas were discussed in lecture on February 16th, 2011, as well as explored in Manfred B. Steger's, Globalization: A Very Short Introduction, and I.B. Logan and Kidane Mengisteab's article, "IMF – World Bank Adjustment and Structural Transformation in Sub-Saharan Africa." Instead of globalization as a positive system for SSA, it did the opposite, and made the region stagnant in economic terms. It was about expanding relationships among countries, but adjustments were creating barriers that prevented SSA from economic communications with other countries. Therefore, it contributed to colonialism after World War II; colonial powers were able to indirectly control what SSA could do, and whom they were able to contact. The World Bank as a financial institution affected SSA's economic industry, and was partly responsible for the control colonial powers had.
The economic system used in South Africa is really the best and considering the fact that it’s a mixed economy shows that more can still be done. This economic system is visible and all citizens of a country are able to benefit from all the resources and projects that take place.
The benefits that the SADC provide to each member are extensive in comparison to other possible FTA’s. For example, Free Trade Agreements and the SADC Economies. Journal of African Economics states, “Some SADC economies are slightly hurt by the FTA between the EU and South Africa, while others gain slightly” (Lewis, 2003). With fifteen members in the SADC and only a select five consisting of Botswana, Lesotho, Mozambique, Namibia, and Swaziland being part of the EU there are tensions in regard to benefits select nations are further receiving in terms of trade. These economies are being strengthened with the EU’s trade agreement and overall the SADC nations can further benefit as
The majority of the continent of Africa has not been as economically progressive as the other continents in today’s world. However, over the past few years, it has been rapidly growing. Although there have been multiple countries in Africa that have reflected a strong growing economy, such as South Africa and Botswana, there are many other countries that are still corrupt and are still struggling to grow as a nation. There are many challenges that are facing Africa currently. Some of these major challenges being, corrupt governments, vicious cycles of aid, and poverty traps. However, among these challenges, there still lies to be great opportunities for Africa within their technology and business sectors.
The harmful impact of globalization on South Africa has been apparent , through the financial squeeze and through market- oriented policies that have silent economic and reorganization, in job losses, crisis in schooling, closing of hospitals, make wider loopholes in the social security net, water cut offs, the degeneration housing shortage, and unrelenting starvation and poverty in a perspective of deepening discrimination in what is already the second most disparate nation on the globe.