South Africa is a country with a breathtaking
natural landscape and vast opportunities for adventure, either
through safari, mountain walking, city or beach life. The natural
terrain varies from savannah to snow-covered mountains, forests to
swamps, endless beaches and peaceful rivers to bustling towns and
cities. Unsurprisingly, there is plenty to explore: vibrant Cape
Town, Robben Island where Nelson Mandela was imprisoned, the Cradle
of Humankind near Johannesburg, the Kruger National Park, Table
Mountain and the Garden Route which comprises 600 km of coastline
between Cape Town and the Tsitsikamma Forest. The country has gone
through impressive changes over the last fifteen years and its
tourism market has opened up significantly. Indeed, visitor numbers
increased by 9% in 2007 and were estimated to be worth around
€31.2bn, a figure that is expected to soar to €60bn by
2017.
Economically, South Africa is considered to
be an emerging market with an abundant supply of natural resources.
The financial, legal, communications, energy and transport sectors
are well-developed, and the country has a modern infrastructure.
However, growth has not been strong enough to substantially lower
South Africa’s high unemployment rate (which was at 24.2% in 2007),
and the economic problems from the apartheid era remain serious,
especially regarding poverty and a lack of economic empowerment
among disadvantaged groups. Economic policy is currently focusing
on targeting inflation and liberalizing trade, hoping to increase
job growth and household income. GDP growth in 2006 and 2007 was
5%, up from 3.7% in 2004 and 4.5% in 2005, while inflation in 2007
stood at 6.5%. This improvement has been steady, and the country is
showing good potential for the future. The Economist Intelligence
Unit anticipates that real GDP will accelerate again and the 2008
budget promises infrastructure investment towards railways,
harbours and ports whilst $7.7 billion dollars will be directed at
improving the generation capacity of Eskom, South Africa’s
state-run electricity company.
Still in this Chapter
Is this is good place to Buy?
Which type of Property should you go for?
Hotspots
The Purchase Process
Mortgages
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