Overview of South Africa
The South African economy ranks 32nd (2020) in the world GDP ranking. The GDP growth was estimated to be 0.8% (2018). After getting hit by the pandemic, the country faced a lot of difficulties because of its weak health care system, and the GDP registered a slight downfall. But the authorities, along with the cooperation of their citizens, were able to tackle the situation quite successfully, and the country is now back on the growth path.
Total population: 59.62 million+
GDP: $283 billion (2020)
The country suffered economic losses due to the restrictions placed across various regions to overcome the spread of the COVID-19 virus. But the statistics suggest that the overall scarcity of goods across the world may prove to be a boon for the South African economy as this may enable them to export goods at higher prices in abundant quantities. According to the statistics, the growth rate in South Africa is 3.7% at present, and the unemployment rate has decreased by 0.1% despite the difficulty caused by the pandemic. This shows that a lot of opportunities are rising there to tackle joblessness.
The services sector is the largest contributor to South African GDP. But the pandemic severely affected this sector, halting many services. The majority of people turned to the online mode of working, which has opened other market areas and increased the chances of cash flow in the economy.
Brief glimpses of industries in South Africa
- The South African economy shifted its attention from the primary and secondary sector to the tertiary sector. At the present moment, this has contributed to 65% of the GDP, which is around $230 billion in total
- The mining industry is at its peak in this country. South Africa is the world's largest producer of platinum, chromium, manganese, and many other metals. Apart from this, it is the world's second-largest producer of titanium and 11th largest producer of gold, the third-largest producer of vanadium, and the 6th largest producer of gold, and many more to add. This shows that mining has added a lot of value to the South African economy and is responsible for 60% of exports. Studies show that around 21% of GDP was due to the mining industry.
- The contribution of the agriculture sector is just like that of the mining industry. FOSTAT suggests that South Africa is the largest producer of agricultural crops like grapefruit, castor oil, green maize, peas, and more crops. This has added R10.1 billion to the South African economy and generated over thousands of jobs in the country.
- Apart from this, the manufacturing industry generates 13.3% of jobs and adds around 15% to the GDP of the country.
- Industries like the space industry are still in nascent stages, but they are slowly gaining prominence, with more people opting for research and engineering as future careers.
- The telecommunication industry rules urban areas, and Cape Town is the center of all the major industrial growth. People from all over the world are also investing in cities like Cape Town as it provides a great location for shooting and establishment of the tourism (entertainment) sector in the country.
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Cost of living in South Africa
South Africa happens to be the most expensive country on the African continent. The place is absolutely stunning, with nature presenting itself in the most beautiful form. The outdoor views are very lively and relaxing at the same time. Strolling in any neighborhood in South Africa is no less than therapy.
Cost of Renting in South Africa
The cost of renting a 1-BHK apartment varies depending on an individual's location preference and desired lifestyle. The city areas with a lot of facilities, landscapes, and opportunities at one's doorstep may be costlier to live in than others. Usually, suburban regions are cheaper than main city areas like Cape Town.
- Tier 1 cities - Pretoria, Cape Town, Johannesburg, Durban, and Cape Town
- Tier 2 cities - Kimberley, Rustenburg, Port Elizabeth, Nelspruit, Polokwane and Bloemfontein
City wise cost of living in South Africa
Top Skills Required in South Africa
Since South Africa has a large labor workforce engaged in activities like agriculture, mining, transportation services, and import and export of goods, the country is opening its doors for more technology-based industries and research. A significant number of companies are interested in investing in the nation, and hence there are few top skills the nation is in desperate need of, and those are: -
- ICT specialists
- Health sector
- Senior Financial Executives
- Mining Executives'
Top Skills City wise
- Cape Town: The annual average salary in Cape town is US $16,725.30. This city is famous for employing people in positions such as administrators, software developers, and operation managers. In the past decade, this city has opened its doors to the entertainment sector, and this is adding to the tourism industry in the city.
- Durban: The average annual salary in this city is US $14,355.88. This city offers some popular jobs such as Registered Nurses, operation managers, and service administrators.
- Port Elizabeth: The average annual salary in Port Elizabeth is $13,634.01. This city offers some popular jobs such as Office administrators, primary school teachers, and Software developers, etc.
The cost of hiring is an extremely important factor that is considered during the recruitment process of employees varies for various reasons. Several factors that decide the hiring of an employee are:
- Onboarding and training
- Hiring process
- Opportunity cost
- Time invested
Salary Structure for various roles
Employment Laws in South Africa
The labor market in South Africa is highly regulated through the South African Labor Law that governs various aspects of employment in the country. The main employment laws of South Africa that govern factors like minimum wages, job termination, minimum holidays, etc. are as follows: -
- The Labor Relations Act
- The Skills Development Act
- The Unemployment Insurance Act
- The Basic Conditions of Employment Act
- The Employment Equity Act
- The Occupational Health and Safety Act
- The Compensation for Occupational Injuries and Diseases Act
How Can Skuad Help You with Hiring in South Africa?
In order to streamline your hiring processes in South Africa, you would need to invest a considerable sum of money and time. Instead of this, focus your energies on taking your business further. With Skuad’s unified employment platform, all your hiring requirements are taken care of in a professional manner. Connect with Skuad to know more.