South Africa  

Moderately elevated labour productivity in South Africa can partially be attributed to the relatively high level of physical capital per worker. A very high unemployment rate of 23% coupled with a high inflation rate of 7% relegates the South African economy to 95th and 69th, respectively. At 18% of GDP, the domestic savings rate is below average, while variables of domestic demand in household expenditure as a percentage of GDP are higher. Although the low amounts of non-performing loans rank the country in the top 26, an interest margin of 7.2 percentage points places South Africa amongst the bottom 20 countries, indicating an inefficient banking sector. The dependence on raw material exports is roughly average, with a concentration level of 10%. This is exacerbated by below average terms of trade and little foreign direct investment at 2% of GDP recorded.

Barriers to entry are about average in South Africa, yet the number of new businesses registered is very high at 41,356 in 2007, ranking South Africa 18th, globally, on this variable. In terms of value added by the service industry, South Africa ranks within the top 30 in the international community. The level of internet infrastructure as measured by bandwidth is about average, but there are only 23 secure internet servers per one million people and only 85 personal computers per 1,000 people. Both high-tech exports and ICT exports rank around the global median at 6% and 1.8% of total manufactured exports respectively, and expenditure on R&D is minimal at only 0.7% of GDP. However, the country ranks high on royalty receipts at 39 out of 104 countries.

South Africans enjoy unconstrained civil liberties and the right to participate in political processes. They have the right to express their beliefs and associate with political and civic organisations. South Africa is a highly democratic country with sound regulation of political participation. The political system is characterised by strong checks and balances and a high level of open competition among rival parties in elections for the executive and legislative branches of the government. Electoral processes are generally free and fair and executive elections are characterised by high levels of regulation. However, the judiciary is somewhat subservient to other branches of government. South Africa has seen a regime change in the last 20 years, so the current political system is relatively young by global standards.

South Africa has 30 pupils per teacher at primary level, which is a relatively high number, internationally, and the girls to boys enrolment ratio achieves gender equity. But with only an 88% enrolment rate, South Africa ranks 79th for primary school enrolment. The average South African worker enjoys high levels of secondary education, due to a 95% enrolment rate in secondary education and an average of 3.7 years of tertiary education, ranking South Africa 65th in the world. This is in line with very low enrolment rates in higher education which place South Africa 76th only. Educational expenditure in South Africa is very low at $1,679 per student.

South Africans have access to less than 10 health professionals and 80 hospital beds per 10,000 people. Health-adjusted life expectancy in South Africa is low at only 44 years, placing the country in the bottom 10 worldwide. Only 3% of South Africans are undernourished, a very low percentage globally. However, there is a high infant mortality rate, with 55 deaths per 1,000 births. South Africa also obtains a below average score in terms of public access to sanitation facilities although three-quarters of respondents indicate satisfaction with the water quality.* More than seven out of 10 South Africans feel well rested and are satisfied with their personal health, and only one in five people indicate they experience health problems and pain.*

South Africa has notable domestic security problems, including the presence of displaced persons or refugees. There are also significant problems related to human flight and the presence of social groups with a history of discrimination or other grievances. The South African government allegedly engages in practices such as torture or political imprisonment. South Africa did not suffer any casualties due to civil wars or ethnic violence during 2008. However, there is an extremely high homicide rate with 543 deaths per one million people per year, putting South Africa at 97 on this variable. Unsurprisingly only 31% of respondents feel safe walking alone after dark, the second lowest rate on this variable.* Other crime rates are more moderate with 13% of respondents reporting assaults or muggings and approximately one in five respondents having had personal or household property stolen in 2008.*

With average scores for rule of law and comparatively high quality regulation of economic and commercial activity, South Africa ranks in the top 40 on these variables. Additionally, the South African civil service is effective in carrying out the objectives set out by political leaders. Still, confidence in the military in South Africa is low at 59%, positioning the country in the bottom quartile.* South African citizens have the legal right to participate in elections but respondents feel that this is limited to some degree. Only 55% of citizens have confidence in the judicial system while approximately two-thirds of respondents indicate that they are confident in the honesty of elections.* Perception of corruption is also widespread, with more than eight out of 10 South Africans believing that local businesses and government are corrupt.*

South Africans enjoy exceptional freedoms of movement, religion and speech and 70% enjoy satisfaction with the freedom of choice in their daily lives.* More than six out of 10 South Africans believe that South Africa is a good place for ethnic minorities and immigrants to live.*

In South Africa, social trust is low, with only 17% of individuals believing that other people can be trusted.* Most respondents believe that friends are not overly important, compared to work or family. South Africans have a high level of organisational membership, ranking seventh overall; 38% are involved in sports associations, 30% in arts, and 22% in environmental. South Africans are highly religious as assessed by their tendency to attend worship services, engage in personal religious practices such as prayer, and express a religious affiliation. Furthermore, South Africa is ranked third in the world for religious membership, with 83% of the population associated with a religious institution.* Even though there is a very low rate of marriage, with only 28% of the population reporting being married, 84% of people believe that they can rely on family and friends to assist them in times of need.* Even though less than two out of 10 South Africans donated money or volunteered, almost six out of 10 reported having helped a stranger.*

* Data taken from the Gallup World Poll

• Back to top