Global Studies Africa Textbook: An Open Global Historical Studies Textbook

Key Industries in the South African Region

Introduction

In wealthy nations across the world we use resources exported from African countries on a daily basis. From a ring on your finger to the software inside your smartphone, our society demands materials from this region. The mining industry is one of the most identifiable for South Africa. This industry consists of the region's largest exports and incorporates other economies across the world. Even with an established demand and an abundant supply relative to other parts of the world the region still has many imperfections. In countries with less raw materials, agriculture is a crucial part of the national economy and accounts for a large part of the GDP. Some impoverished countries in Southern Africa have the majority of their population relying on the agriculture industry for income. 


Industry of  Mining and Mineral Extraction

There are large quantities of natural wealth in Southern African reserves and a great deal of it is unused. Some of these resources are still yet to be discovered due to the size of territory and terrain. This region is home to an abundance of natural resources that include diamonds, gold, oil, natural gas, uranium, platinum, copper, cobalt, iron, bauxite, silver among others. However, certain countries have a higher concentration of elements, and these raw materials play an essential role in establishing the wealth of a nation. South Africa is the world's second largest producer of gold and has a large abundance of iron ore.



The steel industry is another role in the overall economy of the southernmost part of the continent because of the location relative to the natural resources. The raw material exports are the second largest industry only to agriculture. South Africa produces a large amount of foods such as corn and fruits. These products are used to support neighboring impoverished countries and to export internationally.  South Africa has the second largest GDP in the whole continent and is the most influential economy within the southern region. 

Namibia is a neighboring country to South Africa and also has a large role within the mining industry. Diamonds and uranium are two of the most vital resources to Namibia and account for a large portion of revenue. The rich deposits make Namibia a primary source for gem-quality diamonds which are exported across the globe. Total revenue by non-diamond mining was $13.82 billion and diamond mining earned $11.46 billion last year. In other words, the extraction of diamonds is absolutely crucial towards the nation’s economy. Mining accounts for more than 50% of foreign exchange earnings. In addition, approximately 95% of mining revenue is accumulated by only five different companies. This jeopardizes the well-being of individual workers and the general population because the corporations have strong leverage in economic activity.

The mining industry in the Southern Africa region consists of many valuable materials, but the industry is far from perfect. With higher levels of poverty and corruption in African countries conflict arises from accumulating these raw materials. According to land use policy, it’s “[possible] that no other industry has precipitated more disputes over land use than mining” (Science Direct). Disputes over land and resources occur between the community and mining companies. In developing countries, governing intervention is minimal, regulatory framework is commonly incomplete,  and fewer effective support schemes are in place for community and industrial groups. With these countries being locked in foreign investment, governments are limited to act and often side with the mining corporations. The effect of mining can result in violence and uprooting of other resources the community needs. In poverty stricken countries, those in debt might need to drop out of school or other work to find diamonds. Many parents send their teenagers to the mines to support low salaries. Diamonds found in either a war zone or through large violence are known as conflict diamonds. In 2003, the Kimberley process was set in place to reassure buyers that their purchased diamonds were conflict free. However, in less regulated countries loopholes exist and some diamonds are acquired through illegal processes. 


The Agriculture Industry

Another influential industry in Southern African countries is agriculture. Many countries with either inferior mining resources, or have mining consist of a smaller proportion of GDP, heavily rely on the agriculture sector. In Malawi, a poverty stricken nation, agriculture accounts for one-third of their GDP and approximately 77% of the total labor force. With a far majority working in agriculture related jobs, many families rely on this source of revenue to provide for their families. If production goes down due to weather or a catastrophic event, much of the population would suffer. In Malawi, agriculture accounts for 80% of their exports including primarily tobacco and corn. Zimbabwe is in a similar economic position so it’s unsurprising that a large portion of their population relies on agriculture as income. Zimbabwe is the world’s largest producer of tobacco and also has other key cash crops that are exported. Agriculture is a necessity in order to keep the population employed and for the economy to stay running. 

Nations in Southern Africa have the agriculture sector contribute towards employing the majority of citizens. However, it’s the poorest countries default to agriculture because of the lack of alternative options. Impoverished landlocked countries in southern Africa have less extractable resources, or don’t have the technology to explore beneath the ground. Lesotho is the perfect example of a dependant, landlocked nation that dedicates a large percentage of their population towards agriculture. Agriculture consists of 86% of the nation's labor force. Although such a large percentage is in that industry, Lesotho still produces less than a quarter of the nation’s demand for food because of the geological location. The country heavily relies on South Africa to import enough goods to be sustainable. Over 50% of Lesotho lives below the poverty line and has minimal opportunities for forward mobility. In Mozambique, over two- thirds of the population lives in rural areas. Likewise, Mozambique is deprived of adequate food and water that the public needs to become sustainable with a high poverty rate of approximately 45% of the population.  


Summary


Compared to other regions of Africa and the world, Southern Africa has a unique situation within its mining and agriculture industries. In respect towards economic growth, these two sectors have the most influence upon the population and progression of these countries. The two sectors account for a large amount of the region's exports and a necessity for economic activity. Advancements such as the Kimberley process have allowed improvements to be made and GDP has been on the rise as a result. However, much of the population these countries still live below the poverty line and are forced to work within these industries to support their families. 
 

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  1. Economics and Infrastructure in the South African Region Jennifer Coronado

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