South Africa

Located at the southernmost tip of the African continent with the Atlantic Ocean to the southwest of its coastline and the Indian Ocean towards the southeast, the Republic of South Africa is bordered by four fellow Commonwealth countries—Eswatini, Mozambique, Namibia and Botswana—to the northeast and northwest and non-Commonwealth Zimbabwe to the north. Lesotho, another Commonwealth member state, is an enclave in the eastern part of South Africa. The country is unique in the fact that it has three capitals; Pretoria in the northeastern province of Gauteng is the administrative capital, Bloemfontein in the east-central Free State province is the national judicial capital, and the city of Cape Town of the Western Cape Province is the legislative capital.

South Africa is a beautiful and vibrant country that is home to 290 conservation parks and eight World Heritage sites and is considered to be the “Cradle of Humankind” due to the belief that human life originated in these lands. The country’s land area is divided into two different physiographic classifications; the interior plateau, a direct continuation of the African plateau that stretches to the Sahara Desert, and the exterior coastal strip is divided into three subcategories: the Cape folded belt, the eastern plateau slopes and the western plateau slopes. The boundary between the interior and exterior topographies is called the uKhahlamba (Drakensberg) and is considered one of the most defining features of South Africa due to its steep slopes and beautiful scenery of the plateaus and lower plains. Aside from the country’s mainland, South Africa also administers two subantarctic islands, Prince Edward and Marion, located approximately 2000 km southeast of Cape Town.

Demographics 

According to official mid-2025 estimates, South Africa’s population stands at approximately 63.1 million. The Black African population constitutes the large majority (around 81%), with the remainder comprising White, Coloured and Indian/Asian communities. South Africa’s multicultural society is reflected in its linguistic diversity, with 11 official languages. isiZulu remains the most widely spoken home language (approximately 25%), followed by isiXhosa, Afrikaans, Sepedi, Setswana, English, Sesotho, Xitsonga, siSwati, Tshivenda and isiNdebele. Other indigenous languages, including those of the Khoi, Nama and San peoples, are also recognised.

The South African population is predominantly Christian (86%), 5% practice traditional African religions, 2% practice Islam and the remaining population practice other religions including Hinduism, Buddhism and Judaism. South Africa has a youthful population with 45% being under the age of 25. Almost 70% of South African citizens reside in urban areas.

History 

As the “Cradle of Humanity” title suggests, the ancestors of modern humans, known as hominins, are said to have originated and settled in the territory that is now South Africa, 3 million years prior to the arrival of modern humans who have since dwelled in the lands for over 100,000 years through the Stone-Bronze-Iron Ages. The San and Khoi, two indigenous groups that lived in the area, were known for their hunter-gatherer and pastoralist lifestyles. The San were skilled at rock art and lived in small groups, while the Khoi were known for their herding of cattle and sheep.

In the 1480s, the Portuguese became the first Europeans to explore the region, followed by the Dutch in the 17th century. In 1652, the Dutch East India Company established a way station at Cape Town, which would become the first permanent European settlement in South Africa. The Dutch settlers, known as Boers, were primarily farmers who traded with passing ships. By the late 18th century, Britain had established colonies in many parts of the world, and South Africa was no exception. In 1795, the British seized control of Cape Town during the Napoleonic Wars, and in 1814, Britain officially gained control of the Cape Colony. The British settlers who arrived in South Africa were largely English-speaking and Protestant, in contrast to the Dutch-speaking Boers who had settled there earlier. As the British continued to expand their control over South Africa, tensions grew between the Boers and the British. In 1835, many Boers left the Cape Colony in a movement known as the Great Trek, in which they migrated northwards in search of land and freedom from British rule. This migration led to the establishment of the Boer republics of Transvaal and the Orange Free State.

The 19th century saw the rise of various African kingdoms and the arrival of missionaries, who established schools and introduced Christianity. Simultaneously, gold and diamonds were discovered in the Boer republics, leading to an influx of British immigrants and tension between the Boers and the British. However, the period was also marked by wars between the British and the Boers, culminating in the two Anglo-Boer Wars of 1880-81 and 1899-1902. The war ended in 1902 with the Treaty of Vereeniging, which brought the Boer republics under British control and in 1910, the Union of South Africa was formed, bringing together four British colonies and two Boer republics into a single country.

In 1948, the National Party government instituted apartheid, a system of racial segregation and discrimination that would last for nearly five decades. The apartheid regime enforced strict racial classifications, with black South Africans subjected to forced removals, limited job opportunities, and restricted access to education and healthcare. The African National Congress (ANC), a political party formed in 1912, became a key player in the struggle against apartheid. In the 1960s and 1970s, the ANC and other anti-apartheid groups were banned and many of their leaders were imprisoned or forced into exile.

In the 1980s, the international community began to increase pressure on South Africa to end apartheid, with economic sanctions and other measures. In 1990, President F.W. de Klerk lifted the ban on the ANC and released Nelson Mandela from prison after 27 years, signalling the beginning of the end of apartheid. Negotiations between the government and the ANC led to the adoption of a new constitution in 1994 and the first democratic elections in South Africa, in which Mandela was elected as the first black President of the country. Since then, South Africa has made significant progress in establishing a multi-racial, multi-cultural democracy.

Key Dates

300-400 Migrants from the north arrive to the territory, joining the indigenous San and Khoikhoi people

1497 Portuguese explorer Vasco da Gama makes landfall on Natal coast.

1652 Jan van Riebeeck, representing the Dutch East India Company, founds the Cape Colony at Table Bay.

1795 Cape Colony taken from the Netherlands by the British. The territory is returned to the Dutch in 1803 before control is ceded to British in 1806.

1816 Shaka Zulu founds the Zulu empire

1835-1840 Boers leave Cape Colony during the ‘Great Trek’; the Orange Free State and the Transvaal founded

1852 Limited self-government granted by the British to the Transvaal

1856 Natal separates from the Cape Colony to become separate territory and Transvaal declared a republic by the Boers

1880-81 The first Anglo-Boer War begins. Conflict ends with a negotiated peace and Transvaal is restored as a republic

1899 British troops gather on the Transvaal border and ignore an ultimatum to disperse leading to the start of the second Anglo-Boer War

1902 Treaty of Vereeniging ends the second Anglo-Boer War. The Transvaal and Orange Free State are made self-governing colonies of the British Empire

1910 The Union of South Africa comprising former British colonies of the Cape and Natal, and the Boer republics of Transvaal, and Orange Free State, is formed

1912 The Native National Congress is founded; later renamed as the African National Congress (ANC)

1919 South West Africa (Namibia) put under South African administration

1934 The Union of South Africa parliament enacts the Status of the Union Act, declaring the country to be “a sovereign independent state”.

2024 National and provincial elections result in a Government of National Unity (GNU) after no single party secures an outright majority.

Legal System and Government

South Africa is a parliamentary representative democratic republic with a three-tier system of government: national, provincial, and local. The national government is headed by the President of South Africa, who is elected by the National Assembly. The National Assembly is the lower house of the Parliament of South Africa, which is responsible for passing legislation and overseeing the work of the government. The executive branch is headed by the President, who appoints a cabinet of ministers to assist in the administration of government. The legislature is responsible for making laws and overseeing the work of the government, and is made up of the National Assembly and the National Council of Provinces. The judiciary is responsible for interpreting the laws and ensuring that they are applied fairly.

The provincial governments are headed by Premiers and are responsible for implementing national policies and legislation within their provinces. Each province has its own legislature and executive, and is divided into municipalities. The local government is responsible for providing basic services such as water, electricity, and sanitation to communities. It is made up of municipalities, which are divided into wards and are governed by elected councils.

The legal system of South Africa is a hybrid legal system that combines elements of both the civil law system and the common law system; customary law is recognised and applied by the courts in matters involving traditional communities and their practices. It is based on the Constitution of South Africa, which was adopted in 1996 and is considered the supreme law of the country, setting out the law of the land and outlining the basic principles of government and human rights. The South African legal system is overseen by the judiciary, which is independent and impartial. The judiciary is made up of various courts, including the Constitutional Court, the Supreme Court of Appeal, and the High Court.

Economy

South Africa remains the most industrialised and diversified economy on the African continent and continues to serve as a leading financial hub, with the Johannesburg Stock Exchange ranking among the world’s top 20 by market capitalisation. The services sector continues to dominate, contributing over 60% of GDP and employing the large majority of the workforce, with finance, real estate, business services and government services as key pillars.

The industry sector contributes approximately 24–25% of GDP and employs around 23% of workers. Manufacturing remains important (around 12% of GDP), with strengths in agro-processing, automobiles, chemicals, metals and electronics. The mining industry, while facing structural challenges including energy constraints and ageing infrastructure, continues to play a pivotal role, contributing roughly 7–9% of GDP and employing hundreds of thousands. South Africa remains the world’s leading producer of platinum group metals, chrome and manganese, and a major exporter of gold, iron ore, coal and diamonds.

Agriculture, forestry and fishing together contribute around 2.5% of GDP but remain strategically important for employment, rural development and exports. The sector has shown resilience and growth in recent years, supported by strong grain, horticulture and livestock industries. Overall real GDP growth has been modest in recent years, influenced by energy supply constraints, global commodity prices and domestic structural reforms. The economy continues to pursue diversification, green industrialisation and investment in infrastructure and skills.

Trade

South Africa’s GDP stood at approximately US$480 billion in recent estimates. In 2023–2024 trade data, top exports continued to be led by precious metals and stones (platinum, gold), iron ore, vehicles and coal. Key export destinations include China, the United States, Germany, the United Kingdom and other African and European markets. Imports are dominated by mineral fuels, machinery, electronic equipment and vehicles, sourced primarily from China, Germany, the United States and regional partners.

As a member of the Southern Africa Customs Union (SACU), South Africa has tariff-free trade agreements with four other African Commonwealth countries, namely Botswana, Lesotho, Namibia, and Eswatini. Additionally, as part of the SACU, South Africa signed an Economic Partnership Agreement with the EU, providing preferential market access, investment protection and promotion bilaterally. The country also has bilateral agreements with Russia, China, Cuba, and Iran.

Investment Opportunities

South Africa continues to host the largest concentration of multinational corporations on the African continent and offers a strategic gateway to sub-Saharan markets. The country possesses a large pool of skilled labour, world-class universities and research institutions, abundant natural resources, modern infrastructure in key urban centres, and a robust legal and regulatory framework. It remains an attractive destination for foreign direct investment across mining, manufacturing, renewable energy, automotive, ICT, agro-processing and tourism.

Following the economic disruptions of recent years, the government has prioritised sectors with high growth and employment potential, including green hydrogen and renewable energy, digital economy and ICT, agro-processing, chemicals, metals and minerals beneficiation, clothing and textiles, and sustainable tourism. Special Economic Zones (SEZs) continue to offer attractive incentives such as a reduced 15% corporate tax rate, building allowances and employment tax incentives.

A range of investment support measures remain available, including the Foreign Investment Grant (reimbursement on qualifying machinery for relocating industries), duty-free importation of capital equipment for certain projects, VAT relief on locally sourced inputs in Industrial Development Zones, the Skills Support Programme (reimbursement of training costs and a portion of salaries), and various tax allowances for greenfield and expansion investments. The government continues to emphasise policy certainty, energy security reforms and ease of doing business improvements to further enhance South Africa’s competitiveness as an investment destination.