South Africa: An economic powerhouse in decline

19-11-2015

South Africa's continental leadership is increasingly under pressure, seen for example in the fact that Nigeria became Africa's largest economy in 2014. South Africa still maintains its lead in the mining, car-making and financial services sectors, and is a well-functioning democracy. However, its material basis of power is shrinking, in particular because of a net slowdown in economic growth in the wake of the global financial crisis. A volatile international economic environment and internal structural weaknesses curb hopes for improved growth in the short and medium term, in a country affected by deep inequalities and a high level of unemployment. Adopted in 2012, the National Development Plan 2030 provides a strategic framework to counter those tendencies, boost growth and reduce poverty.

South Africa's continental leadership is increasingly under pressure, seen for example in the fact that Nigeria became Africa's largest economy in 2014. South Africa still maintains its lead in the mining, car-making and financial services sectors, and is a well-functioning democracy. However, its material basis of power is shrinking, in particular because of a net slowdown in economic growth in the wake of the global financial crisis. A volatile international economic environment and internal structural weaknesses curb hopes for improved growth in the short and medium term, in a country affected by deep inequalities and a high level of unemployment. Adopted in 2012, the National Development Plan 2030 provides a strategic framework to counter those tendencies, boost growth and reduce poverty.