PEST ANALYSIS

ThePESTanalysisofSouthAfricaisinitiallyhardtorecoverduetothelackofinformation providedpublically.However,withextensiveresearchanddeterminationwehavebeen abletofindwaystodecodetheirnation.

PoliticalAnalysis ForthepoliticalsituationinSouthAfrica,theyfaceadversitycontinuously.Asfortheir ecologicalandeconomicalstatus,theyrankasthehighestnationwithbiodiversityinthe world.Theirsoilisaffectedbymanyfactorsintheirunderlyingbedrock.Theirvarietyand landformsandvegetationszoneshavethusresultedinaremarkablyhighdiversityof species(plantsandanimalsalike)inSouthAfrica.Thisresultsinarichnaturalheritage, whichincludesamixoftropicalMediterraneanandtemperateclimates. Theyarethusable tomaintaintobeoneofthesixcountriesintheworldwithanentireplantkingdomwithin itsnationalconfines.

AsforSouthAfricaslegislation,theyfaceafewboundarieswiththeirmixed/hybridlegal system.Itiscomposedofinterweavinganumberofdistinctlegaltraditionssuchas:civil lawoftheDutch,commonlawoftheBritish,andanindigenouslawsystemfromAfrican Natives.Withthesetraditionshavingacomplexinterrelationship,theproceduralaspectsof thelegalsystemstillprominentlyprevailtobecorrelatedwiththeRomanDutchlegal system.Duetothis,theircourtsystemisorganizedhierarchically,andconsistsof MagistratesCourts,HighCourts,aSupremeCourtofAppeal,andaConstitutionalCourt. TheConstitutionalCourthadthehighestauthorityinallmatters.

EconomicAnalysis SouthAfricantradepolicyiscomposedduetotheircompositionandaggregategrowthoftrad e.Intheapartheidperiod,tradeprotectionseriouslyimpededbothexportsandimports,andth eeconomydependedonfavorableglobalcommoditypricetrendstoavoidrunningintoanext ernalconstraint.SouthAfricadevelopedacomparativeadvantageincapitalintensiveprimaryan dmanufacturedcommoditiespartlybecauseofitsnaturalresourceendowments.Highandopa quetariffsseriouslyimpededexportgrowth,andwhenglobalcommoditymarketswereweak, andadecliningingoldexports,theseriouslycontainedaggregategrowthanddulledresponse toexportstotheweakerrandinthelate1980s.Duetothis,tradeliberalizationinthe1990s notonlyincreasedimportsbutbyreducingbothinputcostsandrelativeprofitabilityofdomest icsales,alsoboostedexports.

Thegrowthinnoncommoditymanufacturedsectoralexportsasaresultofliberalizationwasac tuallyfasterthansectoralimports.Thissuggeststhatadditionaltradeliberalizationcouldwellb eapartofthestrategytoenhanceexportdiversification. SouthAfricasDepartmentofTradeandIndustryhaslaunchedaCompetitivenessFundthatpro videsfinancialsupporttoqualifyingentrepreneurs,allocatinggrantsthatcoverupto50%ofth eirrunningcosts.TheyalsohavetheBEE,BlackEconomicEmpowerment,whichmakessureco mpaniesareprovidingsharestotheiremployees.

SouthAfricahasamixedeconomywithhighrateofpovertyandlowGDPpercapita.ByUN classificationSouthAfricaisamiddleincomecountrywithanabundantsupplyofresources,we lldevelopedfinancial,legal,communications,energy,andtransportsectors,astockexchangeth atranksamongthetoptwentyintheworld,andamoderninfrastructuresupportinganefficie ntdistributionofgoodstomajorurbancentersthroughouttheentireregion.Theyareranked 25th intheworldintermsofGDPasof2008.

Advanceddevelopmentissignificantlylocalizedaroundfourmajorareas:CapeTown,PortElizab eth,Durban,andPretoria/Johannesburg.Beyondthesefoureconomiccenters,developmentis

marginalandpovertyisstillprevalentdespitegovernmentefforts.Atthestartof2000,thenP residentThaboMbeki,vowedtopromoteeconomicgrowthandforeigninvestmentbyrelaxing theirrestrictivelaborlaws,steppingupthepaceofprivatizationandcuttingunneededgovern mentspending.Resultswereseenassoonof2004,whenSouthAfricasawasignificantincreas eineconomicgrowth.

Theirmonetarynote,theZAR,isthemostactivelytradedemergingmarketcurrencyinthewo rld.ThenotewasthebestperformingcurrentagainsttheUSDollarforthreeyears,20022005. Thesemarketstheytradewith,besidesotherAfricancountries,include:Germany,theUnitedS tates,China,Japan,UnitedKingdomandalsoSpain.Theirchiefexportsincludecorn,diamonds, fruits,gold,metalsandminerals,sugarandwool.Machineryandtransportationequipmentma keupmorethanonethirdofthevalueofSouthAfricasimports.Otherimportsincludechemi cals,manufacturedgood,andpetroleum.

Oneoftheirbiggesthurdles,whichaffectSouthAfricalocally,isenvironmentaldamage,which wascausebythemisuseofthelandandglobalclimatechange.SouthAfricaisunusuallyvuln erabletoclimatechangeandhasseenavastdisappearanceofsurface waters. SouthAfricamaintainsformaltraderelationswithvariouscountriesbymeansoftreaties,trade agreements,andmembershipininternationaltradeinstitutions.ThecenterpieceofSouthAfric a'sforeigneconomicpolicyistheSouthernAfricanDevelopmentCommunity(SADC),comprising Angola,Botswana,theDemocraticRepublicofCongo(DRC),Lesotho,Malawi,Mauritius,Moza mbique,Namibia,Seychelles,SouthAfrica,Tanzania,Zambia,andZimbabwe.Thegovernment's keypolicyobjectiveistostrengthentradeandinvestmentlinkagesbetweenSouthAfricaandt heotherSADCcountries.

TheUnitedStatesisanotherofSouthAfrica'slargesttradingpartners.SouthAfricaisabenefic iaryoftheU.S.GeneralizedSystemofPreferences(GSP),whichgrantsdutyfreetreatmentfor morethan4,650products.SouthAfrica'sexportstotheUnitedStatesincreasedfromR5.2billi onin1993toR14.8billionin1998.SouthAfricaalsohas

importanttradingrelationswithJapan,SouthKorea,andcountriesinSouthAmerica.

SocialAnalysis Withagrowingpopulationof49,052,489andelevenofficiallanguages,SouthAfricahas becomeandintenselydivertivenation.Theyhavealargemassmediasectorthat commonlyusestheEnglishlanguage.

TheSouthAfricanblackmajoritystillhasasubstantialnumberofruralinhabitantswho leadlargelyimpoverishedlives.Itisamongthesepeople,however,thatculturaltraditions survivemoststrongly;asblackshavebecomeincreasinglyurbanizedandWesternized, aspectsoftraditionalculturehavedeclined.UrbanblacksusuallyspeakEnglishor Afrikaansinadditiontotheirnativetongue.Therearesmallerbutstillsignificantgroupsof speakersofKhoisanlanguageswhoarenotincludedintheelevenofficiallanguages,but areoneoftheeightotherofficiallyrecognizedlanguages.Therearesmallgroupsof speakersofendangeredlanguages,mostofwhicharefromtheKhoiSanfamily,that receivenoofficialstatus;however,somegroupswithinSouthAfricaareattemptingto promotetheiruseandrevival.

Researchersinvestigatingtheimpactofthecurrenteconomiccrisisonlocalconsumer behaviorhavefoundthat60%ofSouthAfricansareworriedaboutthefutureandtheirfear isfuellingaconsiderablechangeintheirbuyinghabits.

TechnologicalAnalysis

ThereisanintenseincreaseofecommercetechnologiesthroughoutSouthAfrica.Through asurveyof150SouthAfricanbuilding,itwasrevealedthedominanceofcommunication aspects,butnotthetransactionprovesofecommerce.Theintegratedimplementationof ecommercesolutionsandsecurityenablingapplications is incredibly limited.