Discover how South Africa generates its income in billions of dollars

The economy of South Africa is the second largest in Africa. However, it is the most industrialized, technologically advanced and diversified economy in Africa overall. South Africa is an upper middle-income economy, one of only eight such countries in Africa. South Africa has shifted from a primary and secondary economy in the mid-20th century to an economy driven primarily by the tertiary sector in the present day, which accounts for an estimated 65% of GDP or $230 billion in nominal GDP terms. The country's economy is reasonably diversified with key economic sectors including mining, agriculture and food processing, energy, financial services, tourism and manufacturing. Before we continue with this video, can you subscribe to our channel if you're new. Also turn on our notification to always get notified each time we drop a video. Stay tuned. Mining. Mining has been the main driving force behind the history and development of Africa's most advanced economy. In 2019, South Africa was the world's largest producer of platinum, the world's largest producer of chromium, the world's largest producer of manganese, the second largest world producer of titanium, the world's 11th largest producer of gold, the third world producer of vanadium, the sixth largest world producer of iron ore, the 11th largest world producer of cobalt and the 15th largest world producer of phosphates. South Africa is one of the world's leading mining and mineral processing countries. In 2019, the mining sector in South Africa contributed with an added value of approximately 13.5 billion US dollars to the country's GDP, though the amount decreased roughly by 2% in comparison to 2018, it still represents almost 60% of exports. Agriculture and food processing. In 2018, South Africa produced 19.3 million tons of sugarcane, making them 14th largest producer in the world. 12.5 million tons of maize, making them 12th largest producer in the world. 1.9 million tons of grape, making them 11th largest producer in the world. 1.7 million tons of orange, making them 11th largest producer in the world. 397,000 tons of pear, making them 7th largest producer in the world. In the same year, it produced millions of tons of potato, wheat, soy, sunflower seed and apple. The agricultural industry contributes around 5% of formal employment, relatively low compared to other parts of Africa, as well as providing work for casual laborers and contributing around 2.8% of GDP for the nation. Manufacturing. South Africa's manufacturing industry's contribution to the economy is relatively small, providing just 13.3% of jobs and 15% of GDP. Labor costs are low but not nearly as low as in most other emerging markets. The South African automotive industry accounts for about 10% of South Africa's manufacturing exports, contributes 7.5% to the country's GDP and employs around 36,000 people. Annual production in 2019 was 632,000 vehicles, out of global production of 78 million units in the same year. BMW, Ford, Volkswagen, Daimler Chrysler, General Motors, Nissan and Toyota all have production plants in South Africa. There are also about 200 automotive component manufacturers in South Africa and more than 150 others that supply the industry on a non-exclusive basis. The companies producing in South Africa take advantage of the low production costs and the access to new markets as a result of trade agreements with the European Union and the Southern African Development Community. There is growth in some areas such as the space industry in South Africa, which is expected to see an increase in space industry jobs and jobs in supporting technology and manufacturing sectors. Tourism South Africa is one of the most popular tourist destinations in Africa. In 2019, the number of tourists in South Africa amounted to 16.65 million. It figures has steadily increased over the previous five years and is expected to see growth in the future. By 2023, it was forecasted that the number of tourists in South Africa would reach 19.6 million. In South Africa, the direct contribution of the tourism sector to GDP was $92 million in 2018 and constituted nearly 3% direct contribution to GDP. In 2018, the tourism sector contributed about 4.5% of total employment in South Africa. Among the main attractions are the diverse and picturesque landscape, the game reserves and the highly regarded local wines. Financial Services South Africa has a sophisticated financial structure with the Johannesburg Stock Exchange Limited, the largest stock exchange on the African continent, ranking 17th in the world in terms of total market capitalization, which is $1.5 trillion as of August 2020. The banking industry overseen by the South African Reserve Bank is dominated by four local players, NetBank, Absa, Standard Bank and First Rand. These banks provide both retail and investment banking services as the sector has become highly competitive with the re-entry of many experienced foreign banks which returned to the market in the mid-90s having left in the late 1980s. Taxation Prior to 2001, the South African tax system was source-based, wherein income is taxed in the country where it originates. Since January 2001, the tax system was changed to residence-based, wherein taxpayers residing in South Africa are taxed on their income irrespective of its source. Non-residents are only subject to domestic taxes. Central government revenues come primarily from income tax, value-added tax and corporation tax. Local government revenues come primarily from grants from central government funds and municipal REITs. In 2019 fiscal year, South Africa Revenue Services collected $86.4 billion in tax revenue, a figure 5.8% more than that from the previous fiscal year. Give this video a like if you enjoyed it and feel free to leave a comment in the comment section below. Thanks for watching.