Overview of the economic relations
Germany is one South Africa's most important trading partners, ranking 2nd in total trading volume behind China and ahead of the USA.
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(© picture-alliance/dpa)
In 2010, goods worth over 4.3 billion Euro were exported to Germany. In the same period, South Africa imported goods from Germany worth approximately 6.8 billion Euro. Germany and the German companies in the country contribute significantly to employment, vocational training and technological development that is underscored by a wide range technology transfer.
The Republic of South Africa has changed fundamentally since the transition to democracy in 1994. Today it is integrated into global trade and the most powerful economy in Africa. Wide-ranging macroeconomic reforms have improved competitiveness and boosted the economy, thus allowing the country at the Cape to find its role on the global market. This is supported by a highly developed financial, legal, communications, energy and transport infrastructure. In addition to its role as an important emerging economy, South Africa is seen as a bridge to other African markets by investors.
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Vehicle production at BMW's plant in Rosslyn
(© picture-alliance / dpa)
South Africa accounts for a tremendous amount of mineral reserves worldwide and is Africa's largest power producer. Many German car companies have production facilites in South Africa and a broad spectrum of suppliers has emerged in the vicinity of the plants. Next to mining and a world-class financial sector, a wide variety of services is a key secrot of South African industry.
In 2010, South Africa enjoyed economic growth of 2.8 percent and a gross domestic product of about 297 billion Euro. While imports rose by roughly 8 percent in 2010, export growth was registered to be about 13 percent. During the same time frame, inflation came in at an annual average of 4.3 percent. Despite the country's prominent economic role in Africa, the country still faces an unemployment rate of around 24 percent.
Due to South Africa's role as a “bridge to Africa” many major international companies are represented in the country. From these, many German businesses have established offices and manufacturing facilties in South Africa, for example, Volkswagen, Mercedes Benz, BMW, BASF, Bayer, DB International, Bilfinger Berger, German Bank, DHL, Hitachi Power Europe, Lanxess, MTU, SAP, ThyssenKrupp and Siemens. In addition to these, there are numerous small and medium-sized enterprises among the approximately 600 German firms established in South Africa.
