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Republic of South Africa Republiek van Suid-Afrika IRiphabliki yeSewula Afrika IRiphabliki yaseMzantsi Afrika IRiphabliki yaseNingizimu Afrika IRiphabhulikhi yeNingizimu Afrika Rephaboliki ya Afrika-Borwa Rephaboliki ya Afrika Borwa Rephaboliki ya Aforika Borwa Riphabliki ra Afrika Dzonga Riphabuḽiki ya Afurika Tshipembe
Flag Coat of arms
Motto: !ke e: ǀxarra ǁke  (ǀXam) “Unity In Diversity” (literally “Diverse People Unite”)
Anthem: National anthem of South Africa
Capital	Pretoria (executive) Bloemfontein (judicial) Cape Town (legislative)
Largest city	Johannesburg (2006)
Official languages	11 Afrikaans English Southern Ndebele Northern Sotho Sotho Swati Tsonga Tswana Venda Xhosa Zulu
Demonym(s)	South African
Government	Parliamentary republic
• President	Thabo Mbeki
• Deputy President	Phumzile Mlambo-Ngcuka
• NCOP Chairman	M. J. Mahlangu
• National Assembly Speaker	Baleka Mbete
• Chief Justice	Pius Langa
Independence from the United Kingdom
• Union	31 May 1910
• Statute of Westminster	11 December 1931
• Republic	31 May 1961
Area
• Total	1,221,037 km (471,445 sq mi) (25)
• Water (%)	Negligible
Population
• 2008 CIA estimate	43.7 million (25)
• Density	39/km (101.0/sq mi) (136)
GDP (PPP)	2007 estimate
• Total	$467,95 billion (25)
• Per capita	$10,600 (57)
GDP (nominal)	2007 (IMF) estimate
• Total	$282.6 billion (30th)
• Per capita	$5,724 (70th)
Gini (2000)	57.8 high inequality
HDI (2007)	0.674 Error: Invalid HDI value (121)
Currency	South African rand (ZAR)
Time zone	UTC+2 (SAST)
Calling code	27
ISO 3166 code	ZA
Internet TLD	.za

The Republic of South Africa (also known by other official names) is a country located at the southern tip of Africa . It borders the Atlantic and Indian oceans and Namibia, Botswana, Zimbabwe, Mozambique, Swaziland, and Lesotho, an independent enclave surrounded by South African territory. South Africa is a member of the Commonwealth of Nations. The South African economy is the largest in Africa and 24th largest in the world. Due to this it is the most socially, economically and infrastructurally developed country on the continent.

South Africa has experienced a different history from other nations in Africa because of early immigration from Europe and the strategic importance of the Cape Sea Route. European immigration began shortly after the Dutch East India Company founded a station at what would become Cape Town, in 1652. The closure of the Suez Canal during the Six-Day War highlighted its significance to East-West trade. The country's relatively developed infrastructure made its mineral wealth available and important to Western interests, particularly throughout the late nineteenth century and, with international competition and rivalry, during the Cold War. South Africa is ethnically diverse, with the largest Caucasian, Indian, and racially mixed communities in Africa. Black South Africans, who speak nine officially recognised languages, and many more dialects, account for nearly 80% of the population.

Racial strife between the white minority and the black majority has played a large part in South Africa's history and politics, culminating in apartheid, which was instituted in 1948 by the National Party (although segregation existed before that time). The laws that defined apartheid began to be repealed or abolished by the National Party in 1990, after a long and sometimes violent struggle, including economic sanctions from the international community.

Several philosophies and ideologies have developed in South Africa, including ubuntu (the belief in a universal bond of sharing that connects all humanity) and Jan Smuts's holism.

Regular elections have been held for almost a century; but the majority of South Africans were not enfranchised until 1994.

South Africa is often called the "Rainbow Nation", a term coined by Archbishop Desmond Tutu and later adopted by then President Nelson Mandela. Mandela used the term "Rainbow Nation" as a metaphor to describe the country's newly developing multicultural diversity after segregationist apartheid ideology. By 2007, the country had joined Belgium, the Netherlands, Canada, and Spain in legalizing same-sex marriage.

History

Pre-history

South Africa contains some of the oldest archaeological sites in Africa. Extensive fossil remains at the Sterkfontein, Kromdraai and Makapansgat caves suggest that various australopithecines existed in South Africa from about three million years ago. These were succeeded by various species of Homo, including Homo habilis, Homo erectus and modern man, Homo sapiens. Settlements of Bantu-speaking peoples, who were iron-using agriculturists and herdsmen, were already present south of the Limpopo River by the fourth or fifth century (see Bantu expansion) displacing and absorbing the original KhoiSan speakers. They slowly moved south and the earliest ironworks in modern-day KwaZulu-Natal Province are believed to date from around 1050. The southernmost group was the Xhosa people, whose language incorporates certain linguistic traits from the earlier KhoiSan people, reaching the Fish River, in today's Eastern Cape Province. These Iron Age populations displaced earlier people, who often had hunter-gatherer societies, as they migrated.

European encounter

The written history of South Africa begins with the arrival of the Portuguese. In 1487, Bartolomeu Dias became the first European to reach the southernmost tip of Africa. When he returned to Lisbon carrying news of the discovery, which he called Cabo das Tormentas (Cape of Storms) due to the stormy conditions he had encountered in the region, his royal sponsor, John II of Portugal, chose a different name, Cabo da Boa Esperança or Cape of Good Hope, for it promised a sea route to the riches of India then being sought by Portugal. Later, the great Portuguese poet Camões immortalized Dias' voyage in the epic poem The Lusiads, specifically via the mythological character, Adamastor, which symbolizes the forces of nature the Portuguese navigators had to overcome during the circumnavigation of the Cape.

European colonization

Along with the accounts of the very early navigators, the accounts of shipwreck survivors provide the earliest written accounts of Southern Africa. In the two centuries following 1488, a number of small fishing settlements were made along the coast by Portuguese sailors, but no written account of these settlements survives. In 1652 a victualling station was established at the Cape of Good Hope by Jan van Riebeeck on behalf of the Dutch East India Company. For most of the seventeenth and eighteenth centuries, the slowly-expanding settlement was a Dutch possession. The Dutch settlers eventually met the south-westerly expanding Xhosa people in the region of the Fish River. A series of wars, called Cape Frontier Wars, ensued, mainly caused by conflicting land and livestock interests.

To ease Cape labour shortages slaves were brought from Indonesia, Madagascar, and India. Furthermore, troublesome leaders, often of royal descent, were banished from Dutch colonies to South Africa. This group of slaves eventually gave rise to a population that now identifies themselves as "Cape Malays". Cape Malays have traditionally been accorded a higher social status by the European colonists - many became wealthy landowners, but became increasingly dispossessed as apartheid developed. Cape Malay mosques in District Six were spared, and now serve as monuments for the destruction that occurred around them.

Most of the descendants of these slaves, who often married with Dutch settlers, were later classified together with the remnants of the Khoikhoi (aka Khoisan) as Cape Coloureds. Further intermingling within the Cape Coloured population itself, as well as with Xhosa and other South African people, now means that they constitute roughly 50% of the population in the Western Cape Province.

Great Britain seized the Cape of Good Hope area in 1795 ostensibly to stop it falling into the hands of the French, but also seeking to use Cape Town in particular as a stop on the route to Australia and India. It was later returned to the Dutch in 1803, but soon afterwards the Dutch East India Company declared bankruptcy, and the British annexed the Cape Colony in 1806. The British continued the frontier wars against the Xhosa, pushing the eastern frontier eastward through a line of forts established along the Fish River and consolidating it by encouraging British settlement. Due to pressure of abolitionist societies in Britain, the British parliament first stopped its global slave trade in 1807, then abolished slavery in all its colonies in 1833.

Historical states in present-day South Africa
before 1600 Kingdom of Mapungubwe (1050–1270) Kingdom of Mutapa (1430–1760)
1600–1700 Dutch Cape Colony (1652–1795)
1700–1800 Mthethwa Paramountcy (c.1780–1817) Ndwandwe (c.1780–1817) Republic of Swellendam (1795) Republic of Graaff-Reinet (1795–1796) Cape Colony (1795–1802)
1800–1850 Dutch Cape Colony (1802–1806) Cape Colony (1806–1910) Waterboer's Land (1813–1871) Zulu Kingdom (1818–1897) Adam Kok's Land (1825–1861) Winburg (1836–1844) Potchefstroom (1837–1848) Natalia Republic (1839–1843)
1850–1875 South African Republic (1852–1902) Orange Free State (1854–1902) Republic of Utrecht (1854–1858) Lydenburg Republic (1856–1860) Griqualand East (1861–1879) Griqualand West (1870–1880) Diggers' Republic (1870–1871)
1875–1900 Stellaland (1882–1885) Goshen (1882–1883) Nieuw Republiek (1884–1888) Klein Vrystaat (1886–1891)
1900–present Cape Colony (1806–1910) Union of South Africa (1910–1961) Transkei (1976–1994) Bophuthatswana (1977–1994) Venda (1979–1994) Ciskei (1981–1994) Republic of South Africa (1961–present)
South Africa portal
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The discovery of diamonds in 1867 and gold in 1884 in the interior encouraged economic growth and immigration, intensifying the subjugation of the natives. The Boers successfully resisted British encroachments during the First Boer War (1880–1881) using guerrilla warfare tactics, much better suited to local conditions. However, the British returned in greater numbers without their red jackets in the Second Boer War (1899–1902). The Boers' attempt to ally themselves with German South-West Africa provided the British with yet another excuse to take control of the Boer Republics.

The Boers resisted fiercely, but the British eventually overwhelmed the Boer forces, using their superior numbers, improved tactics and external supply chains. Also during this war, the British used controversial concentration camps and scorched earth tactics, forcing whole families into crowded tents and burning their houses. Crops were burnt and all livestock slaughtered to demoralize the resisting Boers. The appalling conditions in British concentration camps were brought to light by Welfare Campaigner Emily Hobhouse in her report "Report of a Visit to the Camps of Women and Children in the Cape and Orange River Colonies". Maltreatment and undernourishment were common in camps. Food was often poisoned and glass pieces and hooks were found in many rations. The death toll reached 26,370 of which 24,000 were children.

The Treaty of Vereeniging specified full British sovereignty over the South African republics, and the British government agreed to assume the £3 000 000 war debt owed by the Afrikaner governments. One of the main conditions of the treaty ending the war was that "Blacks" would not be allowed to vote, except in the Cape Colony.

Independence

After four years of negotiating, the Union of South Africa was created from the Cape and Natal colonies, as well as the republics of Orange Free State and Transvaal, on May 31, 1910, exactly eight years after the end of the Second Boer War. The newly-created Union of South Africa was a dominion. The Natives' Land Act of 1913 severely restricted the ownership of land by 'blacks', at that stage to a mere 7% of the country, although this amount was eventually increased marginally. In 1934, the South African Party and National Party merged to form the United Party, seeking reconciliation between Afrikaners and English-speaking "Whites", but split in 1939 over the Union's entry into World War II as an ally of the United Kingdom, a move which the National Party strongly opposed.

In 1948, the National Party was elected to power, and began implementing a series of harsh segregationist laws that would become known collectively as apartheid. Not surprisingly, this segregation also applied to the wealth acquired during rapid industrialisation of the 1950s, '60s, and '70s. While the White minority enjoyed the highest standard of living in all of Africa, often comparable to "First World" western nations, the Black majority remained disadvantaged by almost every standard, including income, education, housing, and life expectancy. However, the average income and life expectancy of a black, Indian or "Coloured" South African compared favourably to many other African states, such as Ghana and Tanzania as education and health were provided, though selectively.

On 31 May 1961, following a whites-only referendum, the country became a republic and left the Commonwealth. The office of Governor-General was abolished and replaced with the position of State President.

Nuclear armament and apartheid

Apartheid became increasingly controversial, leading to widespread sanctions and divestment abroad and growing unrest and oppression within South Africa. (See also the article on the History of South Africa in the apartheid era.) A long period of harsh suppression by the government, and at times violent resistance, strikes, marches, protests, and sabotage by bombing and other means, by various anti-apartheid movements, most notably the African National Congress (ANC), followed. In the late 1970s, South Africa began a program of nuclear weapons, and in the following decade it produced six deliverable nuclear weapons. The rationale for the nuclear arsenal is disputed, but it is believed that Vorster and P.W. Botha wanted to be able to catalyse American intervention in the event of a war between South Africa and the Cuban-supported MPLA government of Angola.

In 1990 the National Party government took the first step towards negotiating itself out of power when it lifted the ban on the African National Congress and other left-wing political organisations, and released Nelson Mandela from prison after twenty-seven years' incarceration on a sabotage sentence. Apartheid legislation was gradually removed from the statute books, and South Africa also destroyed its nuclear arsenal and acceded to the Nuclear Non-Proliferation Treaty. The first multi-racial elections were held in 1994, which the ANC won by an overwhelming majority. It has been in power ever since.

Despite the end of apartheid, millions of South Africans, mostly black, continued to live in poverty. This is partly attributed to the legacy of the apartheid system and, increasingly, as what many see as the failure of the current government to tackle social issues, coupled with the monetary and fiscal discipline of the current government to ensure both redistribution of wealth and economic growth. Since the ANC government took power, South Africa's United Nations Human Development Index has fallen dramatically, while it was steadily rising until the mid-1990s. Much of this could be attributed to the AIDS pandemic and the government's failure to take steps to address it. However, the ANC's social housing policy has produced some improvement in living conditions in many areas by redirecting fiscal spending and improving the efficiency of the tax collection system.

Government and politics

South Africa is the only country in the world with three capital cities: Cape Town, the largest of the three, is the legislative capital; Pretoria is the administrative capital; and Bloemfontein is the judicial capital. South Africa has a bicameral parliament: the ninety members of the National Council of Provinces (the upper house); and the four hundred members of the National Assembly (the lower house). Members of the lower house are elected on a population basis by proportional representation: half of the members are elected from national lists and half are elected from provincial lists. Ten members are elected to represent each province in the National Council of Provinces, regardless of the population of the province. Elections for both chambers are held every five years. The government is formed in the lower house, and the leader of the majority party in the National Assembly is the President.

Current South African politics are dominated by the African National Congress (ANC), which received 69.7% of the vote during the last 2004 general election and 66.3% of the vote in the 2006 municipal election. The current (2004-2009 term) President of South Africa is Thabo Mbeki, who succeeded former President Nelson Mandela. The main challenger to the ANC's rule is the Democratic Alliance party, which received 12.4% of the vote in the 2004 election and 14.8% in the 2006 election. The leader of this party is Helen Zille (elected 6 May 2007). The previous leader of the party was Tony Leon. The formerly dominant New National Party, which introduced apartheid through its predecessor, the National Party, chose to merge with the ANC on 9 April 2005. Other major political parties represented in Parliament are the Inkatha Freedom Party, which mainly represents Zulu voters, and the Independent Democrats, who took 6.97% and 1.7% of the vote respectively, in the 2004 election.

However since 2004 the country has suffered many thousands of popular protests, some violent, making it, according to one academic, the "most protest-rich country in the world". Many of these protests have been organised from the growing shanty towns that surround South African cities.

Law

The primary sources of South Africa law were Roman-Dutch mercantile law and personal law with English Common law, as imports of Dutch settlements and British colonialism. The first European based law in South Africa was brought by the Dutch East India Company and is called Roman-Dutch law. It was imported before the codification of European law into the Napoleonic Code and is comparable in many ways to Scots law. This was followed in the 19th century by English law, both common and statutory. Starting in 1910 with unification, South Africa had its own parliament which passed laws specific for South Africa, building on those previously passed for the individual member colonies.

Provinces, districts and municipalities

When apartheid ended in 1994, the South African government had to integrate the formerly independent and semi-independent Bantustans into the political structure of South Africa. To this end, it abolished the four former provinces of South Africa (Cape Province, Natal, Orange Free State, and Transvaal) and replaced them with nine fully integrated provinces. The new provinces are usually much smaller than the former provinces, which theoretically gives local governments more resources to distribute over smaller areas.

The nine provinces are further subdivided into 52 districts: 6 metropolitan and 46 district municipalities. The 46 district municipalities are further subdivided into 231 local municipalities. The district municipalities also contain 20 district management areas (mostly game parks) that are directly governed by the district municipalities. The six metropolitan municipalities perform the functions of both district and local municipalities. The new provinces are: Template:SouthAfricaProvinces

Geography

South Africa is located at the southernmost region of Africa, with a long coastline that stretches more than 2,500 kilometres (1,550 mi) and across two oceans (the Atlantic and the Indian). At 470,979 sq mi (1,219,912 km²), South Africa is the world's 25th-largest country (after Mali). It is comparable in size to Colombia. Njesuthi in the Drakensberg at 3,408 m (11,424 ft) is the highest peak in South Africa.

South Africa has a generally temperate climate, due in part to it being surrounded by the Atlantic and Indian Oceans on three sides, by its location in the climatically milder southern hemisphere and due to the average elevation rising steadily towards the north (towards the equator) and further inland. Due to this varied topography and oceanic influence, a great variety of climatic zones exist.

The climatic zones vary, from the extreme desert of the southern Namib in the farthest northwest to the lush subtropical climate in the east along the Mozambique border and the Indian ocean. From the east, the land quickly rises over a mountainous escarpment towards the interior plateau known as the Highveld. Even though South Africa is classified as semi-arid, there is considerable variation in climate as well as topography.

The interior of South Africa is a vast, rather flat, and sparsely populated scrubland, Karoo, which is drier towards the northwest along the Namib desert. In contrast, the eastern coastline is lush and well-watered, which produces a climate similar to the tropics. The extreme southwest has a climate remarkably similar to that of the Mediterranean with wet winters and hot, dry summers, hosting the famous Fynbos Biome. This area also produces much of South Africa's wine. This region is also particularly known for its wind, which blows intermittently almost all year. The severity of this wind made passing around the Cape of Good Hope particularly treacherous for sailors, causing many shipwrecks. Further east on the country's south coast, rainfall is distributed more evenly throughout the year, producing a green landscape. This area is popularly known as the Garden Route.

The Free State is particularly flat due to the fact that it lies centrally on the high plateau. North of the Vaal River, the Highveld becomes better watered and does not experience subtropical extremes of heat. Johannesburg, in the centre of the Highveld, is at 1,740 metres (5,709 ft) and receives an annual rainfall of 760 millimetres (30 in). Winters in this region are cold, although snow is rare.

To the north of Johannesburg, the altitude drops beyond the Highveld's escarpment, and turns into the lower lying Bushveld, an area of mixed dry forest and an abundance of wildlife. East of the Highveld, beyond the eastern escarpment, the Lowveld stretches towards the Indian ocean. It has particularly high temperatures, and is also the location of extended subtropical agriculture. The mountains of the Barberton Greenstone belt in the lowveld are the oldest mountains on Earth, dating back 3.5 Billion years. The earliest reliable proof of life (dated 3.2–3.5 Billion years old) has been found in these mountains.

The high Drakensberg mountains, which form the south-eastern escarpment of the Highveld, offer limited skiing opportunities in winter.The coldest place in South Africa is Sutherland in the western Roggeveld Mountains, where midwinter temperatures can reach as low as −15 degrees Celsius (5 °F). The deep interior has the hottest temperatures: A temperature of 51.7 °C (125 °F) was recorded in 1948 in the Northern Cape Kalahari near Upington.

South Africa also has one possession, the small sub-Antarctic archipelago of the Prince Edward Islands, consisting of Marion Island (290 km²/112 sq mi) and Prince Edward Island (45 km²/17.3 sq mi) (not to be confused with the Canadian province of the same name).

Flora and fauna

South Africa is one of only 17 countries worldwide considered Megadiverse. It has more than 20,000 different plants, or about 10% of all the known species of plants on Earth, making it particularly rich in plant biodiversity. South Africa is the third most biodiverse country in the world, after Brazil and Indonesia and has greater biodiversity than any country of equal or smaller size (Brazil being roughly seven times South Africa's size, and Indonesia more than 50% larger).

South Africa's most prevalent biome is grassland, particularly on the Highveld, where the plant cover is dominated by different grasses, low shrubs, and acacia trees, mainly camel-thorn and whitethorn. Vegetation becomes even more sparse towards the northwest due to low rainfall. There are several species of water-storing succulents like aloes and euphorbias in the very hot and dry Namaqualand area. The grass and thorn savannah turns slowly into a bush savannah towards the north-east of the country, with more dense growth. There are significant numbers of baobab trees in this area, near the northern end of Kruger National Park.

The Fynbos Biome, which makes up the majority of the area and plant life in the Cape floristic region, one of the six floral kingdoms, is located in a small region of the Western Cape and contains more than 9,000 of those species, making it among the richest regions on earth in terms of floral biodiversity. The majority of the plants are evergreen hard-leaf plants with fine, needle-like leaves, such as the sclerophyllous plants. Another uniquely South African plant is the protea genus of flowering plants. There are around 130 different species of protea in South Africa.

While South Africa has a great wealth of flowering plants, it has few forests. Only 1% of South Africa is forest, almost exclusively in the humid coastal plain along the Indian Ocean in KwaZulu-Natal (see KwaZulu-Cape coastal forest mosaic). There are even smaller reserves of forests that are out of the reach of fire, known as montane forests (see Knysna-Amatole montane forests). Plantations of imported tree species are predominant, particularly the non-native eucalyptus and pine. South Africa has lost a large area of natural habitat in the last four decades, primarily due to overpopulation, sprawling development patterns and deforestation during the nineteenth century. South Africa is one of the worst affected countries in the world when it comes to invasion by alien species with many (e.g. Black Wattle, Port Jackson, Hakea, Lantana and Jacaranda) posing a significant threat to the native biodiversity and the already scarce water resources. The original temperate forest that met the first European settlers to South Africa was exploited ruthlessly until only small patches remained. Currently, South African hardwood trees like Real Yellowwood (Podocarpus latifolius), stinkwood (Ocotea bullata), and South African Black Ironwood (Olea laurifolia) are under government protection.

Numerous mammals are found in the bushveld habitats including lions, leopards, white rhinos, blue wildebeest, kudus, impalas, hyenas, hippopotamus, and giraffes. A significant extent of the bushveld habitat exists in the north-east including Kruger National Park and the Mala Mala Reserve, as well as in the far north in the Waterberg Biosphere.

Climate change is expected to bring considerable warming and drying to much of this already semi-arid region, with greater frequency and intensity of extreme weather events such as heatwaves, flooding and drought. According to computer generated climate modelling produced by the South African National Biodiversity Institute (SANBI) (along with many of its partner institutions), parts of southern Africa will see an increase in temperature by about one degree Celsius along the coast to more than four degrees Celsius in the already hot hinterland such as the Northern Cape in late spring and summertime by 2050.

The Cape Floral Kingdom has been identified as one of the global biodiversity hotspots since it will be hit very hard by climate change and has such a great diversity of life. Drought, increased intensity and frequency of fire and climbing temperatures are expected to push many of these rare species towards extinction. The book Scorched : South Africa's changing climate takes much of the modelling produced by SANBI and presents it in an accessible travelogue-style collection of essays.

South Africa houses many endemic species, among them the critically endangered Riverine Rabbit (Bunolagus monticullaris) in the Karoo.

Economy

By UN classification South Africa is a middle-income country with an abundant supply of resources, well-developed financial, legal, communications, energy, and transport sectors, a stock exchange (the JSE Limited), that ranks among the top twenty in the world, and a modern infrastructure supporting an efficient distribution of goods to major urban centres throughout the entire region. South Africa is ranked 20th in the world in terms of GDP (PPP) as of 2007.

Advanced development is significantly localised around four areas: Cape Town, Port Elizabeth, Durban, and Pretoria/Johannesburg. Beyond these four economic centres, development is marginal and poverty is still prevalent despite government efforts. Consequently the vast majority of South Africans are poor. However, key marginal areas have experienced rapid growth recently. Such areas include: Mossel Bay to Plettenberg Bay; Rustenburg area; Nelspruit area; Bloemfontein; Cape West Coast; KwaZulu-Natal North Coast amongst others.

Even though South Africa has the fourth highest per capita income in Africa, only behind Seychelles, Botswana and the European possessions located in Africa, it suffers from large income gaps and a dual economy marking it as a developing country. South Africa has one of the highest rates of income inequality in the world. A decade of continual economic growth has helped to lower unemployment, but daunting economic and social problems remain. The average South African household income decreased considerably between 1995 and 2000. As for racial inequality, Statistics South Africa reported that in 1995 the average white household earned four times as much as the average black household. In 2000 the average white household was earning 6 times the average black household. The implementation of affirmative action policies have seen a rise in black economic wealth and an emerging black middle class. Other problems are crime, corruption, and HIV/AIDS.

At the start of 2000, President Thabo Mbeki vowed to promote economic growth and foreign investment by relaxing restrictive labour laws, stepping up the pace of privatisation, and cutting unneeded governmental spending. His policies face strong opposition from organised labour. South Africa is also the continent's largest energy producer and consumer.

The South African rand (ZAR), the world's most actively-traded emerging market currency, has joined an elite club of fifteen currencies, the Continuous linked settlement (CLS), where forex transactions are settled immediately, lowering the risks of transacting across time zones. The rand was the best-performing currency against the United States dollar (USD) between 2002 and 2005, according to the Bloomberg Currency Scorecard.

The volatility of the rand has affected economic activity, falling sharply during 2001 and hitting a historic low of 13.85 ZAR to the USD, raising fears of inflation, and causing the Reserve Bank to increase interest rates. The rand has since recovered, trading at 7.13 ZAR to the dollar as of January 2008. However, as exporters are put under considerable pressure from a stronger domestic currency, many call for government intervention to help soften the rand.

Refugees from poorer neighbouring countries include many immigrants from the DRC, Mozambique, Zimbabwe, Malawi and others, representing a large portion of the informal sector. With high unemployment levels amongst poorer South Africans, xenophobia is prevalent and many people born in South Africa feel resentful of immigrants who are seen to be depriving the native population of jobs, a feeling which has been given credibility by the fact that many South African employers have employed migrants from other countries for lower pay than South African citizens, especially in the construction, tourism, agriculture and domestic service industries. Illegal immigrants are also heavily involved in informal trading. However, many immigrants to South Africa continue to live in poor conditions, and the South African immigration policy has become increasingly restrictive since 1994.

Electricity crisis

After unsuccessful attempts by the government to encourage private construction of electricity generation capacity, in 2007 the state-owned electricity supplier (Eskom) started experiencing a lack of capacity in the electrical generating and reticulation infrastructure. This led to an inability to meet the routine demands of industry and consumers, resulting in countrywide rolling blackouts. Initially the lack of capacity was triggered by a failure at Koeberg nuclear power station, but since then a general lack of capacity became evident. The supplier has been widely criticised for failing to adequately plan for and construct sufficient electrical generating capacity, although ultimately the government has admitted that it's at fault for refusing to approve funding for investment in infrastructure.

Agriculture

South Africa has a large agricultural sector and is a net exporter of farming products. There are almost a thousand agricultural cooperatives and agribusinesses throughout the country, and agricultural exports have constituted 8% of South Africa's total exports for the past five years. The agricultural industry contributes around 10% of formal employment, relatively low compared to other parts of Africa, as well as providing work for casual labourers and contributing around 2.6% of GDP for the nation. However, due to the aridity of the land, only 13.5% can be used for crop production, and only 3% is considered high potential land.

Although the commercial farming sector is relatively well developed, people in some rural areas still survive on subsistence agriculture. It is the eighth largest wine producer in the world, and the eleventh largest producer of sunflower seed. South Africa is a net exporter of agricultural products and foodstuffs, the largest number of exported items being sugar, grapes, citrus, nectarines, wine and deciduous fruit. The largest locally produced crop is maize (corn), and it has been estimated that 9 million tons are produced every year, with 7.4 million tons being consumed. Livestock are also popular on South African farms, with the country producing 85% of all meat consumed. The dairy industry consists of around 4,300 milk producers providing employment for 60,000 farm workers and contributing to the livelihoods of around 40,000 others.

In recent years, the agricultural sector has introduced several reforms, some of which are controversial, such as land reform and the deregulation of the market for agricultural products. Land reform has been criticised both by farmers' groups and by landless workers, the latter alleging that the pace of change has not been fast enough, and the former alleging racist treatment and expressing concerns that a similar situation to Zimbabwe's land reform policy may develop, a fear exacerbated by comments made by the country's deputy president. The sector continues to face problems, with increased foreign competition and crime being two of the major challenges for the industry. The government has been accused of not devoting enough time and money to tackle the problem of farm attacks as opposed to other forms of violent crime.

Another issue which affects South African agriculture is environmental damage caused by misuse of the land and global climate change. South Africa is unusually vulnerable to climate change and resultant diminution of surface waters. Some predictions shows surface water supply could decrease by 60% by the year 2070 in parts of the Western Cape. To reverse the damage caused by land mismanagement, the government has supported a scheme which promotes sustainable development and the use of natural resources.

Demographics

South Africa is a nation of more than 43 million people of diverse origins, cultures, languages, and religions. The last census was held in 2001 and the next will be in 2011. Statistics South Africa provided five racial categories by which people could classify themselves, the last of which, "unspecified/other" drew negligible responses, and these results were omitted. The 2006 midyear estimated figures for the other categories were Black African at 79.5%, White at 9.2%, Coloured at 8.9%, and Indian or Asian at 2.5%. Even though South Africa's population has increased in the past decade (primarily due to immigration), the country had an annual population growth rate of −0.501% in 2008(CIA est.).

By far the major part of the population classified itself as African or black, but it is not culturally or linguistically homogeneous. Major ethnic groups include the Zulu, Xhosa, Basotho (South Sotho), Bapedi (North Sotho), Venda, Tswana, Tsonga, Swazi and Ndebele, all of which speak Bantu languages (see Bantu peoples of South Africa).

Some, such as the Zulu, Xhosa, Bapedi and Venda groups, are unique to South Africa. Other groups are distributed across the borders with South Africa's neighbours: The Basotho group is also the major ethnic group in Lesotho. The Tswana ethnic group constitute the majority of the population of Botswana. The Swazi ethnic group is the major ethnic group in Swaziland. The Ndebele ethnic group is also found in Matabeleland in Zimbabwe, where they are known as the Matabele. These Ndebele people are the descendants of a Zulu faction under the warrior Mzilikazi that escaped persecution from Shaka by migrating to their current territory. The Tsonga ethnic group is also found in southern Mozambique, where they are known as the Shangaan.

The white population is not ethnically homogenous and descend from many ethnic groups: Dutch, German, French Huguenot, English, Irish, Scottish and Welsh. Culturally and linguistically, they are divided into the Afrikaners, who speak Afrikaans, and English-speaking groups, many of whom are descended from British and Irish immigrants (see Anglo African). Many small communities that have immigrated over the last century retain the use of other languages. The white population is on the decrease due to a low birth rate and emigration; as a factor in their decision to emigrate, many cite the high crime rate and the government's affirmative action policies. Since 1994, over one hundred thousand white South Africans have emigrated. Despite high emigration levels, a high level of non-South African white immigrants have settled in the country, in particular from countries such as Britain and Zimbabwe. For example, by 2005, an estimated

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