Economy of south Africa GROUP NO. -3 SANDEEP KUMAR SHEPHERED MURMU SONAL SINGH BILAL GHAYAS ANOOP KUMAR BISHAL KUMAR AREEF HUSSAIN DEEPSHIKHA AGRAWAL

• Surface Area:– 1,219 million km2• Coastline:– 3 000 km• Highest Peak:– 3 482 m (Drakensberg)• Average AnnualRainfall: 450 mm

Geography• Small Country• Mainly Arid• Mineral-Resource Endowed

Code Rank City Population ProvinceAnnual Growth Rate

JHB 1 Johannesburg 8,837,000 Gauteng 2.47%

CPT 2 Cape Town 3,653,000 Western Cape 1.43%

ETH 3 Durban 3,192,000 Kwazulu-Natal 1.36%

EKU 4 Germiston 2,724,229 Gauteng 1.36%

TSH 5 Pretoria 2,450,000 Gauteng 1.41%

NMA 6 Port Elizabeth 1,572,000 Eastern Cape 0.41%

JHB 7 Vereeniging 1,074,000 Gauteng 0.41%

EC125 8 East London 958,000 Eastern Cape 0.32%

FS172 9 Bloemfontein 752,906 Free State 0.21%

GT421 10 Vanderbijlpark 650,867 Gauteng 0.13%

service 78.5%industry 20.6%agriculture 0.9%

•GDP: $277.4 billion (2009) (nominal; 32nd) $ 488.6 billion (2009)

•GDP growth: 3.2%

•GDP per capita: $5,684 (2009) (nominal; 76th) $10,136 (2009) (PPP; 79th) GDP by sectorGDP growth

Overview

Inflation (CPI): 7.2% Population below poverty line: 50% Labor Force:17.32 million economically active

Labor force by occupation

services 65%industry 26%agriculture9%

Agriculture and Industry

Agriculture Industryonly 13% of land used for

growing crops. Maize is most widely grown

followed by wheat, oats, sugar cane and sunflowers.

The government is working to develop small-scale farming in efforts to boost job creation.

Citrus and deciduous fruits are exported, as are locally produced wines and flowers.

AutomotiveChemicalsICT and electronicsMetals Textiles, clothing and

footwear

Financial institution

Johannesburg Stock Exchange

JSE is the largest stock exchange on the African continent

18th in the world in terms of total market capitalisation

Stock Exchange

South Africa 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.

External Exports: $67.93 billion Export goods: gold, diamonds, platinum, other

metals and minerals, wine, machinery and equipment

Main export partners

Export

Japan 11.1%US11.1%Germany 8%UK 6.8%china6%netherland 5.2%Other 51.8%

Trade

Imports : $70.24 billion (2009 )Import goods: Machinery And Equipment, Chemicals,

Petroleum Products, Scientific Instruments, Foodstuffs

Main import partners

Germany11.3% China 11.1%US7.9% Saudi arabia

6.2%Japan 5.5% UK 4%Other

Household Expenditure Breakup

Telecommunications 4th most advanced mobile telecommunications

network worldwide.The major cellular providers are- Vodacom, MTN, Cell

C and Virgin Mobile

Source: Industry data & estimates c. 2008 Blycroft Ltd

Internet and PC Penetration

An 11-month-old carrier pigeon, was faster than South Africa's internet in transmitting data over a 60 mile distance. The 11-month-old pigeon carried a memory stick with data more quickly than the data could be sent over the internet to another computer in Durban, Sept. 9, 2009. Internet speed and connectivity in Africa's largest economy are poor because of a bandwidth shortage. It is also expensive. (Rogan Ward)

Cont’d………….Five Million users by end -2009Internet Penetration at 10%Key Growth Drivers

New undersea cableGranting of Electronic Communications Network Service licenses to more than 400 service providers Transition by small organizations from dial-up Web connections to Broadband

The 2010 Fifa World Cup will have an even greater impact on the Sout African economy At least R51.1-billion to the country's GDP.

2010 boost for SA economy

COSUMER BEHAVIORPopulation and resources

500 million people (census 2001)75% sparsely populatedPeople live in traditional rural lifestyleProjected growth -2 billion by2050Faces shortages of food and waterHuge mineral wealth

Consumer behavior as part of strategic marketing

AFRIPOLITAN

Africa has a multi cultural society due to urbanization trends , influx of people from north, emigrants from Asia and Europe.

Language and technology sellsFor a product/services to sell in Arica , its

imperative that the language to communicate has to be a local one.

11 accepted languages by its constitutionPeople accept and embrace web technologies

quiet easily.

BARRIER BUSTERSPeople questioning gender rolesDividing lines between young and old are

becoming less apparent in music, fashion,lifestyle and holidays.

African consumer inclination towards social networking

BLACK PRIDEAs the Africans are becoming more confident

economically and socially they form a proud and unique indettity.They are influenced by global and international trends as a result of international travel, movies, magazines and newspapers, the Internet and technology.

CATCHING UP This is a uniquely South African trend, which

is a direct result of apartheid. People who were discriminated against now feel that it is their right to have access to what was previously denied them –education, jobs, services, housing, consumer goods and lifestyle.

Challenges GaloreSocio Economic problemsLow internet penetrationInfrastructural problemsLanguage barriersInadequate resources Limited broadband connectivity

Brief Introduction: -Founded in 2007 - Founder-Hartman and Mike Stopforth

-Other Products: - - a blog advertising network

: -a micro blogging

site -Facilities Provided: Blog :Podcast and Videocast :News Feed :Images :Discover new site in Afroshphere

AFRIGATOR

AFRIGATORDevelopment: -1997-worked for Media 24, Synaptix, Career

Junction, True Love and financial week. -2004- started web browsing -2006- launched Grabble search engine -2007- joined The Time -Apr 2007- launched Afrigator in Alpha stage -Nov 2007-moved into BETA stage -Feb 2008- launched mobile social networking - Nov 2008- launched Adgator and Gatorpeeps - Dec 2008- joined OPA

AFRIGATORKey Factors of Success: -Combination of Hartman’s technical expertise,

Stopforth’s management skills, Forrester’s great ideas and Pretorious’ web developing skills.

-Additional services in BETA stage. -Launching of mobile social networking. -Ranking of bloggers -Giving platform to female bloggers. -User friendly tools ad interface -Its local relevance and ability to aggregate and

filter an increasing number of social media

AFRIGATORKey Factors of Success: -Redesigning of Afrigator according to

afrigreater campaign -Its ability to localize content as well as

aggregate and filter mainstream news -Partnership with 24.com, SA national

election commission, US government and Parlatones

-coverage of Twitter, Flicker You Tube, etc.

Key learningsTo be successful in African market one has to

localize oneself. One has to customize one’s product

according to taste, preference and culture of different people from different country because there are far too many differences between each country.

Sponsoring events and doing CSR are good medium of creating brand image in African market.

Key learningsDue to deeper mobile penetration in Africa,

companies should mainly focus on mobile offerings.

To win the favor of African people one has to project oneself as an African company.

FUTURE STRATEGYInnovate and be creative (lapapaya.org)Temporary it can launch a ‘lite’ version of

afrigator for slower internet connections.Reach out for countries outside Africa.Use afrigator in carrying out protest, survey

and politics.Promote Afrigator through celebrities.

Questions ???

Thank you for your attention