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While the FIFA event was seen as an overwhelming success by organisers and the domestic tourism body, the country has, thus far, been unable to replicate or sustain the level of visitors the international football tournament brought to the country. However, figures began to head upwards in the last quarter of 2011 and certain markets, such as the African and Asian visitor segments, offer hope for an industry that remains central to the government’s development plans. The government has begun a transition in its strategy, moving away from its traditional reliance on European and Western tourists and shifting towards other markets, promoting domestic travel and looking to emerging economies. This chapter contains interviews with Robert Venter, Chief Executive, Altron; and Marcel von Aulock, CEO, Tsogo Sun Group.

The telecommunications sector in South Africa is among the continent’s most developed. It tends toward encouraging data-heavy services by shifting from voice to data services, increasing smartphone usage, expanding localised content, and adding both private and public sector capacities to lay the groundwork for fourth-generation (4G) and long-term evolution (LTE) networks. As of the third quarter of 2011, there were approximately 57m active mobile subscriptions, and with 20% of subscribers holding more than one SIM card, the mobile penetration rate stands above 100%. This compares with an overall fixed-line subscriber base of roughly 4m users, a rate that has been on a slow but steady decline in recent years. South Africa is bursting with opportunities for growth in information and communications technology (ICT). The country has about 6m internet users and studies conducted by Research ICT Africa show that 15% of South African households have a working computer and that 5% have an internet connection. Prices for broadband internet connectivity have fallen in recent years, and the landing of multiple international cables on South African shores in 2012 will likely lower prices further. Continued expansion of South African firms, such as logistics companies, retailers and distributors, could strengthen demand for inventory management software, cloud computing services and other technological solutions. This chapter contains interviews with Alan Knott-Craig, CEO, Cell C; Karel Pienaar, Managing Director, MTN South Africa; Pieter Uys, CEO, Vodacom South Africa; and Robert Venter, Chief Executive, Altron.

South Africa’s real estate sector felt the full force of the global economic crisis in 2008. The sector has been hit by a lack of demand stemming from weakened consumer confidence, rising inflation and obstacles to credit growth. However, the market is benefitting from the growth in urban middle-class consumers, a fact reflected in the emerging property supply and prices. South Africa’s young, and increasingly wealthy, population should offer many opportunities for investors and developers in all facets of the real estate sector in the next decade. The construction sector remains a critical component of the economy. The contribution of the sector to GDP was estimated at 3.2% in 2010. However, as the economy slowed and the flow of work linked to the hosting of the FIFA event dried up, growth came to an abrupt halt and contractors were left to make do with a dwindling list of projects. Developer caution persists, suggesting that this trend may remain for some time. As such, contractors are looking to the government and its ambitious infrastructure programme for future work. This chapter contains an interview with Samuel Ogbu, Chief Executive, Liberty Group Properties.

This chapter looks at the role of regional government across the country. While the ruling African National Congress has largely stood for a strong central government, the capacity of local and provincial government to provide services and infrastructure to millions of South Africans has remained central to the evolution of the country during the post-apartheid period. However, a number of the smaller provinces are looking to increase their investment attractiveness, growth rates and economic diversification as well, which is helping to buttress development nationwide. This chapter contains an interview with Helen Zille, Premier of the Western Cape.

While South Africa’s infrastructure has held a comparative advantage over its neighbours, upgrades have become necessary for most categories of public infrastructure to maintain that edge. The country’s airports are routinely praised as the best in Africa, and there is no shortage of capacity after a recent round of upgrades in advance of the 2010 World Cup. South Africa has 747,000 km of roads and a functioning railway network. The 20,500-km rail network is managed by Transnet, which is working on a plan to overhaul the rail system. The port at Durban is the country’s largest, handling around 60% of traffic, however, the country’s sea ports are challenged by high costs and congestion. This chapter contains interviews with Brian Molefe, CEO, Transnet; and Richard Branson, President, Virgin Atlantic.

This section looks at South Africa’s industry sector, which has long supported the national economy. For the first 11 months of 2011 output rose 7.7% in comparison to the same period of 2010, according to Statistics South Africa. The fastest-growing manufacturing sectors included electrical machinery; radio, television and communication equipment; and automobiles and components, each of which expanded by 10% or more. Industrial Development Zones (IDZs) have become a recognisable component of South Africa’s industrial sector. The fact that the country has long positioned itself as gateway to African markets, both financially and physically, has also served its industrial sector well. This chapter contains interviews with Lionel October, Director-General, Department of Trade and Industry; Geoffrey Qhena, CEO, Industrial Development Corporation (IDC); and Peter Matlare, CEO, Tiger Brands.