Economic and Settlement Geography: Grade 12 NSC Guidelines
Economic and Settlement Geography: Grade 12 NSC Guidelines
Essential Notes on the South African Economy
1. Key Economic Concepts:
- Gross Domestic Product (GDP): The total value of goods and services produced within South Africa’s borders annually.
- Gross National Product (GNP): The total value of goods and services produced by the citizens of South Africa, both locally and abroad.
- Formal Sector: Registered and regulated industries and businesses, contributing to official employment and tax systems.
- Informal Sector: Unregulated businesses, typically small-scale, not registered or taxed, providing a crucial source of income for many unemployed people【19†source】.
2. Economic Sectors:
- Primary Sector: Extraction of raw materials like mining, agriculture, and fishing. Despite its declining contribution to GDP, it still supports other sectors through raw material supply【19†source】.
- Examples: Agriculture (maize harvesting), mining (platinum mining).
- Secondary Sector: Manufacturing and processing of raw materials into goods. Plays a major role in adding value to raw materials【19†source】.
- Examples: Steel production, automobile manufacturing.
- Tertiary Sector: Service-based industries, the largest contributor to the GDP. It includes transport, education, and financial services【19†source】.
- Examples: Public education, bus transport.
- Quaternary Sector: Focuses on information services like ICT and research【19†source】.
3. Agriculture and Food Security:
- Agriculture: Although its contribution to GDP has declined, agriculture remains vital for employment, exports, and food security【19†source】.
- Large-scale Farming: Involves modern technologies, monoculture, and high productivity; contributes significantly to exports and GDP.
- Small-scale Farming: Sustainable practices focusing on local production and food security but face challenges like manual labor and financial uncertainty【19†source】.
- Food Security: South Africa faces challenges such as climate change, land reform, and natural disasters. Strategies include government subsidies, rural development schemes, and the promotion of sustainable agricultural practices【19†source】.
4. Mining:
- Contribution: Mining remains a cornerstone of the South African economy, contributing significantly to GDP, foreign exchange, and employment. It also supports secondary industries【19†source】.