Slides

• Three Economic Sectors

  • Primary Sector
  • Secondary Sector
  • Tertiary Sector
• Primary Sector

  The extraction of raw materials, e.g. mining, farming, fishing, forestry
• Secondary Sector

  The manufacturing process, e.g. Car manufacturers, Clothing manufacturing, Furniture makers, Activities concerning engineering, Chemical plants, Manufacturing of electricity
• Tertiary Sector


  The product or service is sold
• Natural resources in the Primary Sector in South Africa

  • Coal
  • Gold
  • Diamonds
  • Platinum
  • Variety of fish
  • Fresh water
• South Africa's climate allows for different crops to grow, such as mealies, sugar, oranges, apples, wheat, grapes, sunflowers and tobacco
• South Africa has many plantations of oak and blue gum trees
• Types of activities in the Secondary Sector

  • Car manufacturing
  • Construction
  • Electricity manufacturing
  • Furniture manufacturing
  • Clothing manufacturing
• Products manufactured in the Secondary Sector are sold in the Tertiary Sector
• The motor manufacturing industry plays a very important role in South Africa
• Sasol is a giant in the chemical industry, producing oil from coal and by-products like paraffin and plastic bottles
• Tertiary Sector activities

  • Sell to retailers
  • Sell to end users
  • Deliver a service
• The Tertiary Sector contributes the most to South Africa's economy, and the more developed a country, the more the Tertiary Sector will contribute
• Knowledge

  A resource that is used in the Tertiary Sector, and is a sustainable resource as people are acquiring more information and knowledge
• Finance is the largest industry in South Africa, followed by personal services
• Skills needed in the different sectors

  • Primary Sector: Physical jobs needing manual labour, may need specialised skills to operate machines, managers need expert skills
  • Secondary Sector: Some unskilled labour, skills to operate specific machines, skills like plumbing, electricians, engineers
  • Tertiary Sector: Largely skilled workers that need to render services or sell goods to consumers, also professional people like doctors, lawyers, pharmacists, needs creative thinking and problem solving skills
• GDP (Gross Domestic Product)

  The total number of final goods and services produced within the country within a year
• Economic development

  The average GDP improves, meaning the standard of living of both richer and poorer people improves
• What needs to be done to increase GDP

  • Utilize human capital (workforce) better, improve skills, control population growth
  • Utilize natural resources to the maximum
  • Increase capital formation
  • Use and grow technology effectively
  • Organizations should focus on achieving economic growth
• Private Sector

  • Sole proprietorship
  • Partnership
  • Private company
  • Public company
• Formal Sector

  Tax-paying businesses which the government is aware of, and their output forms part of the GDP
• Informal Sector

  Economic activity that does not form part of the GDP, the unrecorded portion of the economy
• Characteristics of the Informal Sector

  • Activities excluded from GDP
  • Entrepreneurial skills developed here because people can't find jobs in the formal sector
  • Lack of education forces people to be part of this sector
  • Includes legal and illegal activities
• Importance (advantages) of the Informal Sector in South Africa

  • Helps create work for people who can't work in the formal sector
  • Entrepreneurial skills help maintain self-confidence
  • Capital requirements are small
  • Prices to consumers are low
  • Decreases unemployment by creating jobs
• Public Sector programs in South Africa

  • RDP
  • GEAR
  • ASGISA
  • NGP
  • NDP