South Africa has a sound economic structure.

South Africa is the leading producer of gold in the world. This industry employs many of the country’s nationals as miners of the product, transporters, traders and many other positions.

It is the main foreign exchange product for the country. This country has a well developed agricultural sector. Most of the food products consumed locally is found locally. It also exports some of its agricultural products to other African countries. The fishing industry is also developed, especially on the high seas. Other industries are also well developed.

Despite all these economic prosperity that this country seems to enjoy, there is one major problem with the economic structure of this nation. The country’s economic system is controlled by the minority. Though rated Africa’s best economy, the wealth is in the hands of a few individuals.

These individuals cannot manage to spend all the wealth they have, and at the same time fear that a moment may come where the government may put them to task to explain their source of wealth. As such, they have kept this wealth in European nations where they know that they would be safe from any investigation.

This has left the larger population in object poverty. They cannot afford many luxuries in life. To others, even the basics are a problem. To an investor, the large population of the country and the huge gross domestic product may be very attractive. However, the reduced purchasing power of this high population is a huge impediment to growth of business units in the country.

South Africa is one of the most attractive destinations for investors. It is one of the fastest growing economies among the developing nations. The political structure of this nation has been its main strength. The country has experienced a stable political environment since the Africans took over power from the Dutch.

This has provided business opportunities to many investors because of total absence of strife. Save for the little xenophobic behavior that was witnessed a few years ago for about a week, the country has been a safe place to invest in. The political class has avoided interrupting with the business units. The ruling party ANC (African National Congress), which has been in power since independence, has had friendly policies towards foreign investors coming to this country.

The economic structure of the country is also very attractive. Although the country has its wealth with the minority, it is still economically viable. The remaining population is still attractive enough to make a good market. The rich minority can also make attractive market segment for goods of ostentation like top of the range cars.

The social structure is another factor that can facilitate trade. The cultural practices of the majority of the residents would facilitate trade in such products as electronics and clothing. With the legal structure that is not prohibitive of foreign investment, investors have the best opportunity to invest in this country’s various sectors.

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