II. Global Factors ________________3

III. Regional Analysis - Africa _______________ 4

IV. Country Analysis - South Africa _______________ 7

 Political situation _______________ 7

 Economic outlook _______________ 10

 Social issues _______________ 14

With the emergence of a new market in South Africa, potential investors are anxiously awaiting to take advantage and gain from this discovery. Once a despairing country, South Africa has shown the world and the global market of the possibilities waiting to be taken by those willing to make a profitable venture.

There are concerns, mostly about slow economic growth and factors such as crime and unemployment, but the forward advancements of the economy have been tremendous. The optimistic outlook for South Africa's market is catching the attention of the most prominent companies around the world.

With the dismantling of apartheid and the gaining of a democratic govern

In the post-apartheid years, South Africa has made great strides in overcoming institutional prejudice and racism, passing some of the world's most progressive equal protection and anti-discrimination laws. A new law passed in January 2000 calls for the founding of special "equity courts" able to levy fines and revoke business licenses in discrimination cases. Political power now rests mainly with the African National Congress (ANC). May 1999 elections increased the ANC's political clout and brought Thabo Mbeki, the outgoing head of states second in command, into the presidency.

African nations require foreign investment to help develop their economies that are deficient in financial and managerial capital. Internally available resources are grossly inadequate to meet the needs of economic development and poverty reduction, even in the unlikely absence of corruption and resource mismanagement.

Considerable progress had been made in the field of foreign trade relations. Trade agreements have been concluded with a number of countries that previously applied sanctions or embargoes against South Africa.

Further evidence of the country's reduced risk profile was apparent from the investment grade rating granted to South Africa's long-term foreign currency debt by Duff and Phelps in July 1997.

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After the sharp decline during the emerging market crisis of 1998, the nominal trade weighted value of the rand was remarkably stable in 1999. In that year there was, however, occasional downward pressure on the rand, which seemed to be related to the emerging market uncertainties created by the Brazilian devaluation, the renewed political uncertainties in Russia, as well as the fall in gold prices.

On December 22, 1993, the South African parliament gave its assent to the non-racial constitutional guidelines drawn up and adopted by the multi-racial negotiating forum in November 1993. The following day, the three-chamber racially based parliament was adjourned. This was the constitutional end of the apartheid era in South Africa.

A clear shift in monetary policy late in 1989, similar to that which occurred in most developed economies nearly ten years before, put South Africa on a path towards structurally lower inflation.

Under the interim constitution, for the term of the first five-year parliament, the national government is one based on power sharing between the elected parties. A transitional government of national unity was established consisting of all representatives of parties receiving over five percent of the national vote. Three parties were in this position after the election: the ANC, the National Party, and the IFP.

The transition to democracy was a necessary, but by no means sufficient condition for turning the country's economic fortunes around. Economic policies had to change as well. The new government inherited major problems of inequalities, social infrastructure backlogs, poverty and unemployment. However, it also inherited severe fiscal constraints on its ability to tackle these problems, in particular, a large budget deficit and a rapidly rising debt to GDP ratio. The government therefore had to find a difficult balance between early and rapid delivery on basic needs on the one hand, and addressing the fiscal issues in a way that would engender confidence in local and foreign financial markets, on the other. As it turned out, in the period following the transition, the government committed itself to policies, which would also help to ensure a successful economic and social transition. This however, meant that government had to face up to the inevitable trade-offs and diff!

Some common words found in the essay are:
South Africa, Analysis Globalization, South Africa's, Africanist PAC, Economic Despite, Nelson Mandela, Africa's Yankee, Security Visitors, South African, Sterling European, south africa, south africa's, interim constitution, world economy, crime rate, economic development, freedom alliance, african nations, foreign trade relations, rapid economic development, national government, iii regional analysis, yankee bond, development african nations, _______________ 7 ,
Approximate Word count = 2989
Approximate Pages = 12 (250 words per page double spaced)