Economy of South Africa

The economy of South Africa is, as of January 2024, the largest economy in Africa. It is a mixed economy, emerging market, and upper-middle-income economy, and one of only eight such countries in Africa.^[29][30][31] The economy is the most industrialised, technologically advanced, and diversified in Africa.^[32]

Following 1996, at the end of over twelve years of international sanctions, South Africa's nominal gross domestic product (GDP) almost tripled to a peak of US$416 billion in 2011. In the same period, foreign exchange reserves increased from US$3 billion to nearly US$50 billion, creating a diversified economy with a growing and sizable middle class, within three decades of ending apartheid.^[33][34]

Although the natural resource extraction industry remains one of the largest in the country with an annual contribution to the GDP of US$13.5 billion,^[35] the economy of South Africa has diversified since the end of apartheid, particularly towards services. In 2019, the financial industry contributed US$41.4 billion to South Africa's GDP.^[36]

In 2021, South Africa-based financial institutions managed more than US$1.41 trillion in assets.^[37] The total market capitalization of the Johannesburg Stock Exchange is US$1.28 trillion as of October 2021.^[38]

The state-owned enterprises of South Africa play a significant role in the country's economy, with the government owning a share in around 700 SOEs involved in a wide array of important industries. In 2016 according to business executives, the top five challenges to doing business in the country were inefficient government bureaucracy, restrictive labour regulations, a shortage of skilled workers for some high-tech industries, political instability, and corruption.

On the other hand, the country's banking sector was rated as a strongly positive feature of the economy.^[39][40] The nation is among the G20, and is the only African country that is a permanent member of the group.^[41]

South Africa is a popular location for offshoring, with many international companies relocating operations or services to the country. In 2025, Robert Walters plc found that 60% of business leaders ranked South Africa as the most attractive country for offshoring, surpassing other popular regions by a large margin. Among the top reasons for offshoring in South Africa were access to skilled talent, retained earnings, strong English proficiency, time zone alignment with major markets, and a growing reputation for business and tech services.^[42]

The main industry that has shown considerable growth in offshoring activities to South Africa is "Tech and IT", which accounts for 53% of new roles. This is followed by categories "customer service and support", "finance and accounting", and "human resources and recruitment". South Africa's combination of skilled talent, strong infrastructure, and alignment with international business practices, makes it a strategic location for building global business capabilities.^[42]