South Africa: - A Socio-Economic Perspective

2. South Africa:- A Socio-Economic Perspective Presented by: Dawie Roodt 5 October 2007

3. Through the Eyes of the World Source: The Economist January 20-26, 2007 Full page advertisements (Est. Cost: £87,500)

4. The Oppositionp. 15

6. The Home Teamp. 17

9. Value for Money? But why say it?

10. 2007:Economic Overview

11. GDP at Market Prices Source: StatsSA and own calculations

12. GDP Source: StatsSA and own calculations

13. Relative size to GDP Source: StatsSA and own calculations

14. Fiscal Policy

15. Background Gold

16. Background Source: SARB and own calculations

17. Background

18. Monetary Policy

19. Interest rates

20. Interest rates ?

21. Inflation

22. Inflation 14.6% Inflation bracket 10.0% 5.2% Source: StatsSA and own calculations

23. Debt Levels

24. Credit Extension Source: SARB and own calculations

25. Household debt to disposable income 59.4% 56.9% 50.2% 44.5% Source: SARB and own calculations

26. Savings to disposable income of households 9.2% 5.4% 2.6% 0.5% Source: SARB and own calculations

27. Balance of Payments

28. Balance of Payments Source: SARS and own calculations

29. Capital Expenditure First Picture of Cape Town’s New Stadium:

30. Capital Expenditure

31. Economic Impact of the 2010 FIFA World Cup • Direct expenditure of R30.4bn • R15.6bn to be spent by expected 350,000 tourists • Contribute R51.0 billion to the GDP of South Africa (2006-2010) • Generate the equivalent of 159 000 annual jobs • Additional R7,2 billion will be paid to Government in taxes. Source: Gauteng Tourism Authority and Grant Thornton (Financial mail)

32. Problems: Debt Levels Tax levels Unemployment Crime AIDS Skills State inefficiency Summary Positives: • Strong GDP growth • State debt at more sustainable level • More stable interest rate • Capital expenditure plans

33. South Africa, Africa and the Rest

34. Percentage of World GDP ‘06 Source: World Bank

35. 4% of African area 23% of African GDP 22% of African Exports 20% of African Imports

36. GDP Source: UN

37. Countries Compared to Provinces Source: UN

38. Socio-Economic Development

39. Close-up on South Africa Source: Unesco and World Bank Development Indicators

40. Social Services Expenditure

41. Social Services Expenditure

42. Social Services Expenditure as % of Total Expenditure Source: Various Budgets and own calculation

43. Human Poverty Index (HPI): Developing Countries (HPI-1),2004 Mali South Africa 2004 South Africa(1998) Average: 30 Cuba Median: 27 Source: Human Development Report, 2006 (undp.org)

44. Health

45. Healthy Spending… ? 2007 Budget: R7.2bn more for HIV-Aids, hospitals and salaries of health workers

46. Healthy Spending as % GDP Source: Various Budgets

47. Public Expenditure on Health Comparison (2003-04) Iceland Cuba Malawi South Africa (‘04&’06) Average: 3.5 South Africa (’07) Median: 3.0 Myanmar Source: Human Development Report, 2006 (undp.org)

48. Male Life Expectancy at Birth, 2004 Tunisia Average: 51 South Africa (2006) South Africa Sierra Leone Swaziland Source: Africa Development Indicators, World Bank, 2006

49. Public Health Expenditure (2003) vs. Life Expectancy at Birth (2000-05) Source: Human Development Report, 2006 (undp.org)

50. Physicians Cuba South Africa(2001) Malawi South Africa 2004 Average: 147.0 Median: 109.0 Source: Human Development Report, 2006 (undp.org)