Over the past 20 years, South Africa’s economic prospects have become increasingly intertwined with those of the rest of the African continent. Before 1994, economic sanctions prevented South African businesses from expanding into Africa. Since then, South African firms have invested heavily in retail, telecommunications, banking, construction and mining in the region.
South African investment on the continent not only creates jobs in the destination countries but is also an important source of South Africa’s foreign exchange earnings and tax revenue. Almost 30% of South Africa’s non-mineral exports are destined for the continent, up from 19% a decade ago. By comparison, 28% of exports go to the EU.