SOUTH AFRICA - background market data

Population — 44.2 million.

Currency — South African Rand (ZAR): UK£1= ZAR13.795, €1= ZAR9.371 and US$1= ZAR7.395, as of Sept 2006. A few years ago the South African rand strengthened significantly.

Government — Still relatively stable under president Thabo Mbeki, head of the ANC. He has been in office since June 1999, when he replaced Nelson Mandela.

Economy — South Africa has well-developed financial, legal, communications, energy, and transport sectors; a stock exchange that ranks among the 10 largest in the world; and a modern infrastructure supporting an efficient distribution of goods to major urban centres throughout the region. Real GDP growth for 2006 is estimated to have been five per cent, much the same as the year before, and the forecasts for this year are similar.

Unemployment is a continual worry — not only of scale, but of differential. Currently it is 40 per cent plus among black Africans, which account for 79 per cent of the population. Overall unemployment is in excess of 25 per cent officially, but it is probably even greater than that in reality. Well over 60 per cent of the population lives below the poverty line.

Inflation is running at around six per cent officially, but prices of many essentials are rising a lot faster. Interest rates are also still very high. At least boat loans are now a possibility since a boat registration scheme was introduced recently.

The best news regarding the economy is the increasing levels of foreign investment that are now coming into the country, which is making some predict GDP growth rates of over five per cent.

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