3 | P a g e 1.1 POLITICAL ANALYSIS The Republic of South Africa held its first universal suffrage elections in April 1994. 4. PESTEL Analysis is one of the tools that often used by managers to analyze the broad macro-environment of an organization. Individual income tax starts at 18% and goes up to 45% depending on the amount an individual earns. The next element to address in the PESTEL analysis of South Africa is the country’s economic environment. 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. We hope the article on the PESTEL analysis of South Africa has been useful. 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. The letters stand for Political, Economic Socio-cultural, Technological, Legal and Environmental. As of June 2018, the GDP stands at around 371 billion USD. Being mixed up in questionable politics puts a damper on those attempting to build a business and those on the fence about investing in South African businesses. As of April 2018, the total population of the country is 50.7 million. Commercial activity, like the addition of Uber and AirBnB, shows South Africa is open to outside business developments. 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. Topics: Economics, ... Managers can analyses these factors through the PESTEL analysis. Economical: 350.6 billion USD (2013).. Legal Laws are strict.. Real GDP growth rate: 1.9% annual change (2013). Nelson Mandela’s South Africa is often referred to as the ‘rainbow nation’. PESTLE analysis is a framework which is imperative for companies such as Woolworths, as it helps to understand market dynamics & improve its business continuously. From 1990s the African National Congress (ANC) has dominated South Africa's politics. Copyright ©2017 - 2025. 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 This doesn’t look promising to new startups. Political • The President of South … It is one of the five BRICKS economic giants. - South African Maritime Safety Authority (SAMSA) continues to generate new regulations for all vessels operating in South African waters. Archbishop Desmond Tutu first coined the term to describe South Africa’s multicultural diversity. 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. Right now, the currency is subjected by the market forces. 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 …. 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 technologically advanced countries in Africa. PESTEL analysis provides great detail about operating challenges Coal Of Africa Limited will face in prevalent macro environment other than competitive forces. It has made an enormous progress in mobile software, security software and electronic banking services (The International Trade Administration, 2017). 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. Pretoria is the administrative capital of South Africa, while Cape Town is the legislative capital. The South African currency, Rand, is at an all time low. Similarly, there are some special rates for certain industries e.g. Country Analysis Report - South Africa - in-Depth Pestle Insights . Similarly, Bloemfontein is the judicial capital of the country. The purpose of this project is to analyze the place of South Africa in International Trade. 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. Pestle analysis of SOUTH AFRICA. Online shopping is on the rise in South Africa. This negative current account balance indicates that South Africa will remain a net borrower from the rest of the world till 2024. 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). There are 11 official languages in the country and Christianity, Islam, and indigenous beliefs are the major religions. Pestle Analysis Of South Africa Hotel Industry. conventions on Safety, Training, Certification and Watch keeping for all seafarers. South Africa is a parliamentary republic with the president being both the head of state and the head of government. Environmental factors: a good spot. An improved workflow is important for business journalists to ensure that they always have their work process smoothened out for them. South Africa is improving conditions for budding businesses. Our website is made possible by displaying online advertisements to our visitors. South Africa remains a divided society with growing tensions between immigrants from other parts of Africa and the local communities. The PESTEL / PEST Analysis of South African Airways (B) HBR case study includes analysis of Political, Economic, Social, Technological, Environment, Legal factors. 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. Political Environment South Africa is a multiparty parliamentary democracy in which constitutional power is shared between the president and the Parliament. 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). ANC councilors are attempting to remove corrupt politicians. 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.” 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. M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. Location is good, but the weakened economy holds businesses within South Africa at a standstill. Everyday our market is changing the way it is. Amazon, IBM, Microsoft, Facebook, LinkedIn, Intel, Dell, Novell, and Apple are some of the companies that can be considered in this regard. 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. Understanding PESTLE analysis. The South African political environment is often clouded by corruption, mismanagement, political intolerance, popular protests, and violence. 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. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. The neighbouring countries of South Africa are Botswana, Mozambique, Swaziland, Lesotho, Namibia, and Zimbabwe. PESTEL ANALYSIS . 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. However, small businesses pay a lower rate of tax. Not only that, but there have been 88 longstanding strikes within South America in 2014, where workers stopped their jobs for months. SWOT analysis of South Africa focuses on the country's greatest strengths, weaknesses, opportunities, and threats affecting the area. However, there are some restrictions on foreign shareholders in some sectors e.g. 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. But companies outside the country question whether to expand into it due to several issues. 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. BBC (2018) South Africa country profile, available at: https://www.bbc.co.uk/news/world-africa-14094760 (Accessed 27 June 2018), Kleitman, Y. In relation to trades, South Africa trades primarily with China, but China’s economy has been slowing down. 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. A graphical way of PEST analysis known as' PESTLEWeb 'has actually been developed at Henley Company School in the joined kingdom. 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 depleted rand currency and unemployment in South Africa being 25% affects the buying power of the people. However, the country faces some environmental challenges such as water pollution, air pollution, land degradation, solid waste pollution, and deforestation. However, some economists believe that the economy can potentially grow at a rate of 3.7% or more in the near future. Some of the top imports of South Africa are machinery and equipment, chemicals, petroleum, scientific instruments, and food materials. This is particularly valid in the light of S.A.’s accession to the International Maritime Organisations (I.M.O.) 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. South Africa is one of the most popular tourism destinations in the world. Also enter your email address at the bottom of the site to ‘Join us’ free for our newly published articles and newsletters. Political Factors Affecting Starbucks Coffee’s Business This part of the PESTEL/PESTLE analysis framework identifies the impact of … Technological environment in South Africa. South Africa is one of the most powerful countries in Africa and plays a considerable role in global economy and politics. South Africa is rich in mineral resources. Main Sectors of Industry. Established in 1864, it is headquartered in Johannesburg, South Africa and has over 55,000 employees as of 2016. When she’s not researching into the sunrise, her nose is stuck in the latest (and cheesiest) of fantasy novels. 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. This could stifle the rising interest in entrepreneurship. 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.. 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. A weak economy will cause new corporations to be cautious when thinking of expanding business into South Africa. In World Bank’s ease of doing business ranking South … 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. 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. They are in charge for creating the laws of and taking care of bills involving monetary issues. Right now, this is a good thing. Access the latest politics analysis and economic growth summary through 2011 for South Africa from The Economist Intelligence Unit It is worth mentioning that South African companies sell a lot of ICT products to growing African markets. The final board exam for CA(SA) students will take place on 22 November. But companies outside the country question whether to expand into it due to several issues. 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