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Ensuring that the economy is well served by South Africa’s energy resources has become one of the government’s overriding concerns. Coal deposits are South Africa’s primary energy resource, with reserves estimated at 30.16bn tonnes as of the end of 2011. Due to an electricity deficit, the government has commissioned two coal-fired power stations, but even as new capacity is added, demand continues to rise, and this “moving target” characteristic of the electricity deficit will exercise the minds of government planners for years to come. The country’s oil reserves are modest, but the presence of large deposits of shale in the Karoo Basin is generating significant interest. The country’s reserves of uranium are estimated to be 295,000 tonnes, or 5% of the world’s total, and the government identified nuclear energy as a key part of the country’s energy mix. This chapter contains an interview with Brian Dames, Chief Executive Officer, Eskom.

Home to the most developed transport network and logistics industry on the continent, South Africa ranks highest in Africa and among the best in its income group globally on a number of indices. While both freight operators and passenger service operators have been experiencing respectable growth in the past year, the long-term success of such industries will be tied to the government’s ability to execute infrastructure projects as it will have to deal with a host of major issues in the coming years, including trade barriers, congestion and the resulting need to raise funds for infrastructure development, if the country is to retain its position at the top. This chapter contains interviews with Tshepo Lucky Montana, Group CEO, Passenger Rail Agency of South Africa (PRASA); and Alan Olivier, CEO, Grindrod.

Industrial activity plays a central role in the South African economy, accounting for around 31.6% of GDP in 2011, and employing a large portion of the population in labour-intensive processes. Like many comparable economies, recent decades have seen the nation’s economic activity tilt away from traditional industry towards a more service-based economy. However, various plans are in place for sector expansion, aimed at the twin goals of national economic expansion and job creation. South Africa’s retail sector runs the spectrum of mercantile activity – from large chains with a multinational footprint to the informal spaza shops that provide household items to their neighbourhoods. The well-established trend of retail expansion in South Africa is expected to be maintained on the back of GDP growth that the IMF has forecast will average 3.6% between 2012 and 2016. However, some factors such as rising energy costs and consumer debt may act as a brake on the market. This chapter contains interviews with Geoffrey Qhena, CEO, Industrial Development Corporation (IDC); Raman Dhawan, Managing Director, Tata Africa; and Grant Pattison, Chief Executive Officer, Massmart Holdings.

The mining industry in South Africa is the fifth largest in the world, and today it accounts for more than 5% of the nation’s GDP. Moreover, the sector remains one of the country’s most important sources of employment, providing 16.2% – or nearly 1.4m – of the total formal non-agricultural jobs. The labour unrest that was seen in 2012 highlighted some of the challenges faced by the sector as it adapts to subdued global markets, ageing mines and overburdened infrastructure. While these challenges are considerable, the nation’s resource base and the rising demand from some of the world’s more buoyant markets offer some promise to the sector. The value of the nation’s non-energy mineral wealth – estimated by Citibank at $2.5trn in 2010 – underwrites the future development of this vital sector. This chapter contains interviews with Simon Scott, Acting CEO, Lonmin; and Sipho Nkosi, Chief Executive, Exxaro Resources.

As the continent’s most developed insurance sector, South Africa accounts for some 52% of African non-life premiums. The short-term insurance market is primarily focused on property and auto products, which together make up almost 75% of short-term gross premiums. Speedy growth in the number of independent insurers has created a robust takeover environment for the major insurers. However, the bulk of the sector is concentrated in the hands of the “big four” insurers. Insurers looking for growth opportunities are increasingly targeting low-income groups through micro-agents and retailers. This chapter contains a roundtable with Bruce Hemphill, CEO, Liberty Group; Nicolaas Kruger, Group CEO, MMI Holdings; Ralph Mupita, CEO, Old Mutual Emerging Markets; and Johan van Zyl, Group CEO, Sanlam.

Home to the world’s 19th-largest exchange, South Africa has mature capital markets able to serve not only the domestic economy but also the wider continent. As global risk appetite for emerging market equities returned from mid-September 2012 following concerted interventions by the world’s central banks, South African equities rallied sharply. Bonds also did well in 2012, despite sovereign rating downgrades from two major ratings agencies and macroeconomic imbalances. Its openness nevertheless has also exposed the economy to the volatilities of emerging market portfolio investment. Significant regulatory reform is on the horizon, including the current iteration of the King Code of Governance Principles as well as the “twin peaks” model of oversight. While downside risks remain, the domestic capital markets provide a clear conduit for portfolio investment to Africa and emerging markets. This chapter contains interviews with Dube Tshidi, Executive Officer, Financial Services Board (FSB); and Stephen van Coller, Chief Executive of CIBW, Absa and Barclays Africa.