Pretoria is the administrative capital of South Africa, while Cape Town is the legislative capital. The African National Congress (ANC), which led the resist against white minority rule and the apartheid system of state-enforced racial separation, won control of the National Assembly. Datamonitor's South Africa Country Analysis Report analyzes the political, economic, social, technological, legal and environmental (PESTLE) structure of South Africa. Copyright ©2017 - 2025. However, small businesses pay a lower rate of tax. Similarly, Cape Town came at the top of The New York Times’ list of ‘52 Places to Go’ in 2014. Life expectancy for men is 53 years, while 54 years for women (BBC, 2018). It has made an enormous progress in mobile software, security software and electronic banking services (The International Trade Administration, 2017). The report provides a holistic view of the country from historical, current and future perspectives. The South African currency, Rand, is at an all time low. Not only that, but there have been 88 longstanding strikes within South America in 2014, where workers stopped their jobs for months. Pestle analysis of SOUTH AFRICA. Political • The President of South … In conclusion we provided the possible forecast for country’s development. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. Some of the top imports of South Africa are machinery and equipment, chemicals, petroleum, scientific instruments, and food materials. mining, defence, insurance, broadcasting, telecommunications, and banking. PESTEL Analysis is one of the tools that often used by managers to analyze the broad macro-environment of an organization. But with the unemployment rate so high, it also means people can’t buy products from these startups. At the G20, it was found South Africa is low-risk for investors looking to breakthrough. PEST or South African Airways A PESTEL analysis is a easy and effective tool employed in situation analysis to acknowledge the essential external (macro environment level) forces which may affect a company. Abundant wildlife, scenic beauty, impressive coastlines, brilliant penguin-filled beaches and vivacious coral reefs have all contributed to the development of South Africa as a tourist destination. Know More South Africa SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for South Africa. ANC councilors are attempting to remove corrupt politicians. Likewise, due to a number of high profile cyber-attacks and other online vulnerabilities, demand for IT security products and software is high as well. Economical factors: rand (currency) is in limbo, Social factors: high entrepreneurship spirit, PESTLE Analysis: Business Environmental Analysis, How Business Journalists Can Streamline Their Workflow, Important drivers to Vietnam’s economic growth, Bangladesh PESTLE Analysis 2021: Challenges and Potential, Johnson and Johnson SWOT Analysis 2021 – Comprehensive …. South Africa is rich in mineral resources. The PESTEL/PESTLE analysis model is used to determine the most important issues that Starbucks must address in its business strategies. Up until 1994 the country was ruled by an apartheid government (BBC, 2018). A number of international tech and social networking companies already operate in South Africa often through subsidiaries. PESTLE analysis. PESTLE analysis is also referred to as PESTEL analysis. The neighbouring countries of South Africa are Botswana, Mozambique, Swaziland, Lesotho, Namibia, and Zimbabwe. South Africa is one of the most technologically advanced countries in Africa. Everyday our market is changing the way it is. Similarly, there are some special rates for certain industries e.g. The interest rates of South Africa might spike if the inflation is not controlled lesser than 3% to 6% due to high food and crude oil prices (earth times, 2011). All rights reserved BSSL. But with every election, there are people who want the corrupt to stay in power. Topics: Economics, ... Managers can analyses these factors through the PESTEL analysis. PESTLE, also known as PEST analysis is a term used in strategic marketing, which describes a framework of macro-environmental considerations used for the development and management of a business strategy. Our website is made possible by displaying online advertisements to our visitors. BRICKS stand for Brazil, Russia, India, China, and South Africa. SOUTH AFRICA INTRODUCTION Introduction The country analysis report on South Africa provides a wide array of analytical inputs to analyze the country's performance, and the objective is to help the reader to make business decisions and prepare for the future. However, there are some restrictions on foreign shareholders in some sectors e.g. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. BBC (2018) South Africa country profile, available at: https://www.bbc.co.uk/news/world-africa-14094760 (Accessed 27 June 2018), Kleitman, Y. South Africa is one of the most powerful countries in Africa and plays a considerable role in global economy and politics. As of April 2018, the total population of the country is 50.7 million. By: M Rahman | Tags: Global Business Issues. An improved workflow is important for business journalists to ensure that they always have their work process smoothened out for them. After growing by 3.1% in the fourth quarter of 2017, the South African economy shrank in the first quarter of 2018. In order to do so we analyzed the background of the country, developed PESTLE analysis, looked at the balance of payments as well as trade balance, examined exchange trade policy and growth rate of the economy. The Standard Bank Group is one of South Africa's largest financial services groups having presence in 20 countries in sub-Saharan Africa as of 2018. The purpose of this project is to analyze the place of South Africa in International Trade. Well, putting these challenges aside, South Africa offers these days good business opportunities in industries such as building and construction supplies, eye care, beauty and cosmetics, automotive, telecommunications, education and utility services (The South African, 2017). Also enter your email address at the bottom of the site to ‘Join us’ free for our newly published articles and newsletters. He is a lecturer in Management and Marketing. South Africa - Pestle Analysis (Economic (Main industries (Industry 31…: South Africa - Pestle Analysis He holds an MSc in Tourism & Hospitality from the University of Sunderland. However, there are some big challenges South Africa faces today. The current account balance for South Africa was estimated to be negative at USD 12.654 billion for the year 2019 and is expected to further decrease at a CAGR of 6.08% and reach USD -17.003 billion by 2024. Consequently, there are great opportunities for online retailers. South Africa is one of the most powerful countries in Africa and plays a considerable role in global economy and politics. With the government preoccupied with lowering employment rates and removing corrupt politicians from local campaigns, plus the devalued Rand, technology may be more stagnated than in other locations, such as the United States of America. Many labor laws are similar to the United Kingdom’s labor laws, particularly when exporting to South Africa. In World Bank’s ease of doing business ranking South … The president appoints a Deputy President and Ministers to form the Cabinet to administer the state affairs. The South African government believes that the real engine of sustainable … This negative current account balance indicates the South Africa is a net borrower to the whole world. South Africa has a system of mixed economy in place. While this could have been good for South Africa’s exports, it does not help that global prices of key South African exports such as iron ore and coal have fallen. The problem is, while the Reserve Bank has the ability to influence Rand, it’s staying neutral, except in relation to interest, where the Reserve Bank will respond with interest rate spikes as the rand continues to weaken. Other relevant articles for you are: If you liked any of these articles, please feel free to share with others by clicking on the icons provided. This PESTLE country analysis report on South Africa provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. Technological environment in South Africa. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. South Africa has coasts on both the South Atlantic and Indian Oceans. One country that has showcased robust strength in the wake of the coronavirus pandemic is Vietnam. From 1990s the African National Congress (ANC) has dominated South Africa's politics. Amazon, IBM, Microsoft, Facebook, LinkedIn, Intel, Dell, Novell, and Apple are some of the companies that can be considered in this regard. This is particularly valid in the light of S.A.’s accession to the International Maritime Organisations (I.M.O.) We hope the article on the PESTEL analysis of South Africa has been useful. It is one of the five BRICKS economic giants. This PESTEL analysis of South Africa aims to address some of the political, economic, social, technological, environmental, and legal factors that affect South Africa today. The Standard Bank Group is one of South Africa's largest financial services groups having presence in 20 countries in sub-Saharan Africa as of 2018. SWOT analysis of South Africa focuses on the country's greatest strengths, weaknesses, opportunities, and threats affecting the area. Political Environment South Africa is a multiparty parliamentary democracy in which constitutional power is shared between the president and the Parliament. Technological advancements, within manufacturing and supply chains, may be thin. The Employment Equity Act 1998 (EEA) aims to achieve equality in the workplace by promoting equal opportunity and fair treatment in employment (Kleitman, 2015). The depleted rand currency and unemployment in South Africa being 25% affects the buying power of the people. It also makes it more difficult for businesses within South Africa to branch out — a high exchange rate makes costs and expenses for South African businessmen difficult. But companies outside the country question whether to expand into it due to several issues. Access the latest politics analysis and economic growth summary through 2011 for South Africa from The Economist Intelligence Unit A weak economy will cause new corporations to be cautious when thinking of expanding business into South Africa. Individual income tax starts at 18% and goes up to 45% depending on the amount an individual earns. M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. Until all corrupt politicians can be removed, their current positions can cause inconveniences for new businesses (depending on the politician’s personal agenda). 1. Similarly, Bloemfontein is the judicial capital of the country. However, the country faces some environmental challenges such as water pollution, air pollution, land degradation, solid waste pollution, and deforestation. Main Sectors of Industry. Therefore, winning the support and confidence of general public and investors in light of the political challenges becomes one of the most important jobs of the president of South Africa. The letters stand for Political, Economic Socio-cultural, Technological, Legal and Environmental. There are 11 official languages in the country and Christianity, Islam, and indigenous beliefs are the major religions. Country Analysis Report: South Africa, In-depth PESTLE Insights Summary This PESTLE country analysis report on Mexico provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. mining and long-term insurance. 4. South Africans also elect provincial legislatures which govern each of the country's nine provinces. Lucintel, a leading global management consulting and market research firm, has analyzed the political, economic, social, technological, legal, and environmental factors of South Africa and has come up with a comprehensive research report, “PESTLE Analysis of South Africa 2016.” Country Analysis Report - South Africa - in-Depth Pestle Insights . South Africa is improving conditions for budding businesses. This PESTLE analysis will examine the many situations South Africa is currently experiencing that may affect businesses within it. South Africa is improving conditions for budding businesses. As of June 2018, the GDP stands at around 371 billion USD. PESTEL analysis provides great detail about operating challenges Coal Of Africa Limited will face in prevalent macro environment other than competitive forces. But companies outside the country question whether to expand into it due to several issues. 3 | P a g e 1.1 POLITICAL ANALYSIS The Republic of South Africa held its first universal suffrage elections in April 1994. conventions on Safety, Training, Certification and Watch keeping for all seafarers. (2015) Doing business in South Africa, available at: https://content.next.westlaw.com/Document/I2ef128301ed511e38578f7ccc38dcbee/View/FullText.html?contextData=(sc.Default)&transitionType=Default&firstPage=true&bhcp=1 (01 July 2018), Mobius, M, (2017) South Africa: Key Issues and Challenges, available at: http://emergingmarkets.blog.franklintempleton.com/2017/03/16/south-africa-key-issues-and-challenges/ (Accessed 29 June 2018), PwC (2018) South Africa – Corporate: Taxes on corporate income, available at: http://taxsummaries.pwc.com/ID/South-Africa-Corporate-Taxes-on-corporate-income (Accessed 29 June 2018), Statistics Times (2018) List of Countries by Projected GDP, available at: http://statisticstimes.com/economy/countries-by-projected-gdp.php (Accessed 25 June 2018), The South African (2017) These are the seven biggest business opportunities in SA right now, available at: https://www.thesouthafrican.com/these-are-the-seven-biggest-business-opportunities-in-sa-right-now/ (28 June 2018), The International Trade Administration, (2017), South Africa – Information Technology, available at: https://www.export.gov/article?id=South-Africa-information-technology (Accessed 29 June 2018). Country Profile Population: 48,810,427 GDP:$554.6billion (2011 estimate) Ethnic Groups: Black African 79% White 9.6% Coloured 8.9% Indian/Asian 2.5% (2001 Census) (CIA Factbook 2012) South Africa - An analysis of the Marketing Environment Political Environment The Republic of In relation to trades, South Africa trades primarily with China, but China’s economy has been slowing down. Pestel Analysis on South Africa Retailindustry . Right now, this is a good thing. PESTEL ANALYSIS POLITICAL There is immense political pressure for SAA to bring back CSI, this after the airline took a unilateral decision without consulting its shareholder (Government) to shut down the department in 2014. PESTEL Analysis • The PESTLE Analysis is a framework used to scan the organization's external macro environment. The PESTEL / PEST Analysis of South African Airways (B) HBR case study includes analysis of Political, Economic, Social, Technological, Environment, Legal factors. The South African political environment is often clouded by corruption, mismanagement, political intolerance, popular protests, and violence. https://www.bbc.co.uk/news/world-africa-14094760, PESTEL analysis of Austria (Austria country profile). Pestle Analysis Of South Africa Hotel Industry. This doesn’t look promising to new startups. PESTEL ANALYSIS . This negative current account balance indicates that South Africa will remain a net borrower from the rest of the world till 2024. However, a lot of things have changed since the country’s first fully democratic election in 1994. What are the key drivers for economic growth in the region? Right now, the currency is subjected by the market forces. This PESTLE analysis will examine the many situations South Africa is currently experiencing that may affect businesses within it. It is worth mentioning that South African companies sell a lot of ICT products to growing African markets. Legal environment is the last element to discuss in the PESTEL analysis of South Africa. Step 6 - PESTEL, PEST / STEP Analysis of South African Airways (A) Another way of understanding the external environment of the firm in South African Airways (A) is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. Social mobility and economic growth are often halted by poor and inadequate infrastructure. They are in charge for creating the laws of and taking care of bills involving monetary issues. It will consist of a case study based in South Africa. Businesses started within South Africa follow the Value Added Tax (VAT). PESTEL Analysis, SWOT Analysis and Risk Analysis of South Africa South Africa PESTEL Analysis This report covers South Africa's PESTEL (political, economic, social, technological, environmental and legal) analysis. The country is the world's largest producer and exporter of gold, platinum, chrome and manganese, the second largest palladium producer and the fourth largest producer of diamonds - with mining rents accounting for around 2.4% of GDP (World Bank, Latest available data), a similar share to manufacturing. South Africa is one of the most popular tourism destinations in the world. For example, unemployment is high and the public health system is ailing. Kiesha Frue is a freelance writer and editor with a love for health, wellness, and entrepreneurship. Because of their strong relation, this affects South Africa’s value in business as China’s investment in South Africa fell by 87% in 2015. Political Factors Affecting Starbucks Coffee’s Business This part of the PESTEL/PESTLE analysis framework identifies the impact of … PEST ANALYSIS South Africa Political Type: Parliamentary democracy.. South Africa is a multiparty parliamentary democracy in which constitutional power is shared between the president and the Parliament.. Economical: 350.6 billion USD (2013).. Legal Laws are strict.. Real GDP growth rate: 1.9% annual change (2013). , the South African rand, in January 2016, hit record lows against the dollar and has lost about 30% of its value in the past six months. South Africa exports gold, diamonds, platinum, cars, metals and minerals, machinery and equipment to a number of countries, notably China, the UK, the United States, Germany, India, and Saudi Arabia. Corporate income tax in South Africa for both resident and non-resident companies for tax years ending between 1 April 2018 and 31 March 2019 is a flat 28% (PwC, 2018). Archbishop Desmond Tutu first coined the term to describe South Africa’s multicultural diversity. PESTLE analysis is a framework which is imperative for companies such as Woolworths, as it helps to understand market dynamics & improve its business continuously. But with such low currency and exchange rate, it’s a wonder how businesses will start or stay in demand with the diminishing Rand. Employees receive fundamental protection in South Africa. South Africa is the 34th largest economy in the world in terms of nominal GDP (Statistics times, 2018). The next element to address in the PESTEL analysis of South Africa is the country’s economic environment. As this is a recovery stage that South Africa is going through inflation is expected to keep low (earth times, 2011). … Understanding PESTLE analysis. - South African Maritime Safety Authority (SAMSA) continues to generate new regulations for all vessels operating in South African waters. This PESTEL analysis of South Africa aims to address some of the political, economic, social, technological, environmental, and legal factors that affect South Africa today. Commercial activity, like the addition of Uber and AirBnB, shows South Africa is open to outside business developments. PESTLE ANALYSIS: Political/ LEGAL: Small business development in South Africa is an important vehicle to address the challenges of job creation, and generating sustainable and equitable growth. Many …, There are many companies the world over, that conduct PESTLE …. Location is good, but the weakened economy holds businesses within South Africa at a standstill. South Africa is in the midst of local elections. However, some economists believe that the economy can potentially grow at a rate of 3.7% or more in the near future. A graphical way of PEST analysis known as' PESTLEWeb 'has actually been developed at Henley Company School in the joined kingdom. When she’s not researching into the sunrise, her nose is stuck in the latest (and cheesiest) of fantasy novels. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Coal Of Africa Limited if it is situated in unstable political environment. Nelson Mandela’s South Africa is often referred to as the ‘rainbow nation’. These problems often slow down economic development and progress. People in general in South Africa desire for better education for their children, rewarding employment opportunities and faster economic growth that offer great opportunities for both local and international organisations. This could stifle the rising interest in entrepreneurship. Despite the hardships, people are moving towards creating startups. The bill of rights South Africa is a parliamentary republic with the president being both the head of state and the head of government. 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