433369666-The-Case-for-Investing-in-South-Africa

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SOUTH AFRICA’S SERVICES SECTOR
• The broad services sector is the largest in the South African economy. Its share of national GDP has expanded
substantially over time, rising from just over 61% in 1970 to 76.3% by 2018.
• South Africa’s well-developed services sector plays a crucial role in the economy. Its various segments – which
include financial, logistics and distribution, business and travel services – provide important services (inputs)
to the manufacturing, mining and agricultural sectors, as well as to the public and household sectors. As such,
they are key determinants of the competitiveness of export-oriented sectors of the economy.
• Out of the five largest services sub-sectors, the finance and insurance sub-sector has significantly
outperformed the others, recording a compound annual growth rate (CAGR) in GDP of 4.7% over the period
from 2000 to 2018. This compares with a CAGR of 3.8% and 2.9%, respectively, in the business services and
wholesale and retail trade sub-sectors. General government services recorded annual GDP growth of 2.5%
over this period.
• The services sector is also a major employer and generator of job opportunities.
SA GDP, 2018
SA GDP, 2018
SA GDP, 2018
Sub-sectoral contributions to services sector's GDP, 2018
76.3%
76.3%
23.7%
23.7%
1
Other sectors Services share of GDP
1
Other sectors Services share of GDP
Source: IDC analysis, compiled using Quantec data
2,500
GDP TRENDS OF THE TOP FIVE SERVICES SUB-SECTORS
(ZAR BILLION AT CONSTANT PRICES)
2,000
Wholesale and retail trade
ZAR billion at 2010 basic prices
1,500
1,000
500
Transport and storage
Finance and insurance
Business services
General government services
Other services sub-sectors
0
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