A mortgage loan or mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination; this means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can be described as "a borrower giving consideration in the form of a collateral for a benefit". Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property.
The lender will be a financial institution, such as a bank, credit union or building society, depending on the country concerned, the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, other characteristics can vary considerably; the lender's rights over the secured property take priority over the borrower's other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first. In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector or through the capital markets through a process called "securitization", which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.
According to Anglo-American property law, a mortgage occurs when an owner pledges his or her interest as security or collateral for a loan. Therefore, a mortgage is an encumbrance on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property; as with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time 30 years. All types of real property can be, are, secured with a mortgage and bear an interest rate, supposed to reflect the lender's risk. Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property. Although the terminology and precise forms will differ from country to country, the basic components tend to be similar: Property: the physical residence being financed; the exact form of ownership will vary from country to country, may restrict the types of lending that are possible.
Mortgage: the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property. Restrictions may include requirements to purchase home insurance and mortgage insurance, or pay off outstanding debt before selling the property. Borrower: the person borrowing who either has or is creating an ownership interest in the property. Lender: any lender, but a bank or other financial institution. Principal: the original size of the loan, which may or may not include certain other costs. Interest: a financial charge for use of the lender's money. Foreclosure or repossession: the possibility that the lender has to foreclose, repossess or seize the property under certain circumstances is essential to a mortgage loan. Completion: legal completion of the mortgage deed, hence the start of the mortgage. Redemption: final repayment of the amount outstanding, which may be a "natural redemption" at the end of the scheduled term or a lump sum redemption when the borrower decides to sell the property.
A closed mortgage account is said to be "redeemed". Many other specific characteristics are common to many markets, but the above are the essential features. Governments regulate many aspects of mortgage lending, either directly or indirectly, through state intervention. Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system. Mortgage loans are gen
Free State (province)
The Free State is a province of South Africa. Its capital is Bloemfontein, South Africa's judicial capital, its historical origins lie in the Boer republic called Orange Free State and Orange Free State Province. The current borders of the province date from 1994 when the Bantustans were abolished and reincorporated into South Africa, it is the only one of the four original provinces of South Africa not to undergo border changes, excluding the reincorporation of Bantustans. The provincial government consists of a premier, an executive council of ten ministers, a legislature; the provincial assembly and premier are elected for five-year terms, or until the next national election. Political parties are awarded assembly seats based on the percentage of votes each party receives in the province during the national elections; the assembly elects a premier, who appoints the members of the executive council. The premier of Free State as of 2009 was Ace Magashule of the African National Congress. In 2018, Sisi Ntombela was appointed premier.
The Free State is situated on a succession of flat grassy plains sprinkled with pastureland, resting on a general elevation of 3,800 feet only broken by the occasional hill or kopje. The rich soil and pleasant climate allow for a thriving agricultural industry. With more than 30,000 farms, which produce over 70% of the country's grain, it is known locally as South Africa's breadbasket; the province is high-lying, with all land being 1,000 metres above sea level. The Drakensberg and Maluti Mountains foothills raise the terrain to over 2,000 m in the east; the Free State lies in the heart of the Karoo Sequence of rocks, containing shales, mudstones and the Drakensberg Basalt forming the youngest capping rocks. Mineral deposits are plentiful, with gold and diamonds being of particular importance found in the north and west of the province; the flats in the south of the reserve provides ideal conditions for large herds of plain game such as black wildebeest and springbok. The ridges and plains typical of the northern section are home to kudu, red hartebeest, southern white rhinoceros and buffalo.
The Southern African wildcat, black wildebeest, eland, white rhinoceros and wild dog can be seen at the Soetdoring Nature Reserve near Bloemfontein. The South African cheetahs has been reintroduced in the Free State for the first time in June 2013 after a hundred years of regional extinction, at Laohu Valley Reserve near Philippolis. Following the reintroduction of an adult female South African cheetah in early 2016, three wild cheetah cubs has been born for the first time in Laohu Valley Reserve in February 2017, making the three new cubs the first cheetahs born in the wild since their disappearance from the Free State province in over a century; the Free State experiences a continental climate, characterised by warm to hot summers and cool to cold winters. Areas in the east experience frequent snowfalls on the higher ranges, whilst the west can be hot in summer. All precipitation falls in the summer months as brief afternoon thunderstorms, with aridity increasing towards the west. Areas in the east around Harrismith and Ficksburg are well watered.
The capital, experiences hot, moist summers and cold, dry winters frequented by severe frost. Bloemfontein averages: January maximum: 31 °C, July maximum: 17 °C, annual precipitation: 559 mm Bethlehem averages: 27 °C, July maximum: 16 °C, annual precipitation: 680 mm In the southeast, the Free State borders seven districts of Lesotho: Mokhotlong – farthest to the east Butha-Buthe – northwest of Mokhotlong and northeast of Leribe Leribe – southwest of Butha-Buthe and northeast of Berea Berea – southwest of Leribe and north of Maseru Maseru – south of Berea and northeast of Mafeteng Mafeteng – southwest of Maseru and northwest of Mohale's Hoek Mohale's Hoek – southeast of MafetengDomestically, it borders the following provinces: KwaZulu-Natal – east Eastern Cape – south Northern Cape – west North West – northwest Gauteng – north Mpumalanga – northeastThe Free State borders more districts of Lesotho and more provinces of South Africa than any other province, it is traversed by the northwesterly line of equal longitude.
The Free State Province is divided into one metropolitan municipality and four district municipalities. The district municipalities are in turn divided into 19 local municipalities: See List of cities and towns in the Free State The Free State's major towns include: Bloemfontein & Botshabelo in Mangaung Metropolitan Municipality Welkom and Virginia in Lejweleputswa Bethlehem and Phuthaditjhaba in Thabo Mofutsanyana Kroonstad and Parys in Fezile Dabi The Free State is the only province in South Africa that operates a free 24-hour dedicated rotorwing aeromedical service from a public hospital, they are able to deliver a high level of care on scene. On 31 October 2018 Free State Emergency Medical Service launched an additional 65 road ambulances to augment the fleet. Free state has many private hospitals; some of them are: Bloemfontein Medi-clinic Bethlehem Medi-clinic Welkom Medi-clinic Mofumahadi Mmanapo Regional Hospital in Phuthaditjhaba. The province is the granary of South Africa, with agriculture central to its economy, while mining on the rich goldfields reef is its largest employer.
Agriculture dominates the Free State landscape, with cultivated land covering 32,000 square kilometres, natural veld and grazing a further 87,000 square kilometres of the province. It is South A
Automotive industry in South Africa
South Africa is traditionally the leader in Africa of the automotive industry and now produces more than half a million automobiles annually of all types. While domestic development of trucks and military vehicles exists, cars built under license of foreign brands are the mainstay; the modern automotive industry in South Africa was launched in 1995 and has since provided a large number of exports. It has motivated global motor vehicle manufacturers to grant production contracts to South African factories. Companies producing in South Africa can take advantage of the low production costs and the access to new markets as a result of trade agreements with the European Union and the Southern African Development Community. South African factories have built motor vehicles and light truck models since the 1920s. In this time, the country's main global customers have been: Honda Chrysler General Motors Fiat Ford Nissan Toyota Volkswagen BMWThese manufacturers have been concentrated in the provinces of the Eastern Cape and KwaZulu-Natal.
Large component manufacturers with bases in the country are Arvin Exhaust, Bloxwitch and Senior Flexonics. There are about 200 automotive component manufacturers in South Africa, more than 150 others that supply the industry on a non-exclusive basis; the Department of Trade and Industry's Motor Industry Development Programme, which ran from 1995 to 2012, provided a major boost to auto manufacturing in South Africa. Its successor is the Automotive Production and Development Programme which aims to achieve local production of 1.2 million vehicles annually by 2020. Volkswagen has had a factory in Eastern Cape since the early 1950s, it now employs around 6,000 people and produces 120,000 vehicles per year, of which 40,000 are exported to other African countries. The Volkswagen group holds a market share of 22.1% in South Africa. BMW manufactures around 55,000 automobiles a year; the BMW Rosslyn Plant in Gauteng was founded in 1968 and plays an important role in the production of equipment used in vehicles.
A Mercedes-Benz manufacturing plant was founded in Eastern Cape around 1954. It produced 55,900 vehicles in 2010, in the same year the local market saw Mercedes-Benz sell 25,400 cars and 6,100 trucks. MAN has been present in Africa since 1968, it does quite well in South Africa, maintaining two plants and a "spares" depot, employing 393 citizens who produce around 2,500 vehicles annually, which sell entirely on the Southern Africa markets. Nissan has a plant in Rosslyn, manufacturing bakkies. Automotives first came to South Africa in 1898 when Garlicks Cycle Supply imported a Royal Enfield quadricycle; the early days of the South African motoring industry were focused on British makers and, to a lesser degree, American makers. Volkswagen was a long-term presence, being popular with those Afrikaners who were unwilling to buy a British car. By the late 1970s, Japanese producers had gained a foothold, British makers were being pushed out. In the late seventies, Sigma Motors had planned to merge with British Leyland, known as Leykor locally - when this merger failed, Leyland had to scramble to create an all-new dealer network in only a month.
Leyland's South African presence never recovered. After the fuel crisis, the large American cars, popular dropped in sales drastically. By the end of the 1970s, the Mazda 323 and the Volkswagen Golf were the biggest sellers and American-designed cars were no longer available. For a while, the demand for big saloons had been met by assembling the somewhat more compact Australian Fords and Holdens, but these were discontinued in favour of more compact European designs. 1976 showed the worst sales numbers since 1972. Chrysler SA went belly up soon thereafter. Chrysler had been successful in the late sixties, with the Valiant range being the most sold passenger car in 1966, 1967, 1968, but began a serious slide after that; the acquisition of Mitsubishi gave Chrysler a stay of execution but the severe economic climate of the latter half of the 1970s proved too much. The automotive industry catered to 303,000 employees in South Africa in 2003, in 2004 the country exported assembled motor vehicles to 53 countries including many developed countries such as Japan, the United States, the United Kingdom and Germany, with many of the manufacturers based in South Africa now making it their main production base.
In 2004, South Africa was responsible for the manufacture of 84% of all vehicles produced in Africa, 7 million of which are on the South African roads. In 2004, the industry made a 6.7% contribution to the GDP of South Africa and 29% of all South African manufacturers made up the country's automotive industry. 2004 saw 110,000 vehicles exported from South Africa of which 100,000 were passenger vehicles. In 2007 and next years the automotive industry grew again, producing over 500,000 vehicles annually reaching peak of 616,000 in 2015. While amounting to a small fraction and 22nd place of the global vehicle production of near 100 million, this made great contributions locally, being supremely first in Africa and making up 7.5% of the country’s GDP and about 10% of South Africa's manufacturing exports. In 2010 the National Association of Automobile Manufacturers of South Africa reported that new vehicle sales exceeded their initial expectations of 7%, with large local growth allowing it to reach 24%, providing a big boost after the 2008/09 recession.
This was evident in 2010 with 271,000 vehicles being exported, more than double what was seen in previous years. Regulations for local content requirements first appeared in the 1960s
Economy of the Western Cape
The Western Cape province of South Africa had a total GDP for 2016 of R424.38 billion growing from R268.26bn in 2008. In 2016 the economy grew by 2.7% with an annual inflation rate of 6.3%. The province accounts for 14% of South Africa's total GDP with Cape Town accounting for 9.9% of the country's total GDP in 2016. The province accounts for 11.2% of the country's total population with 6.2 million residents. The Western Cape has a GDP per capita of R74,274 in comparison to the South African average of R55,609 per capita in 2016. At 19.7% the province has a lower unemployment rate than the national average standing at 23.2% in 2009. In 2018 the number of unemployed people declined by 38,000 with employment rates increasing by 3.9% since 2017. The province's Gini coefficient of 0.58 in 2010 is lower than South Africa's Gini coefficient of 0.65 making it more equal than the rest of the country whilst still being high and unequal by international standards. The Western Cape's Human Development Index is the highest in South Africa at 0.7708, compared to the South African average of 0.6675 in 2003.
The province's economy is dominated by the city of Cape Town, where the vast majority of all non-agricultural economic activity takes place. The single largest contributor to the region's economy is the financial and business services sector, followed by manufacturing. Close to 30% of the gross regional product comes from foreign trade with agricultural products and wine dominating exports. High-tech industries, international call centres, fashion design, advertising and TV production are niche industries gaining in importance. Since the founding of Cape Town by the Dutch East India Company in 1652, the two pillars of the Cape Colony's economy until the Kimberley diamond strike of 1868 and the opening of the opening of the Suez Canal in 1869 were shipping and agriculture. Cape Town's strategic position as the halfway point between Europe and Asia meant that prior to the opening of the Suez Canal every ship involved in the spice trade between those two continents docked at Cape Town to resupply.
The supplying of these ships with fresh provisions and wine provided a large market for the surplus produce of the colony. By the late 18th century, the Cape Colony was one of the best developed European settlements outside of Europe or the Americas. During the 18th century, pastoral production was the dominant economic activity in the more arid north-western Cape whilst mixed agriculture was dominant in the south-western Cape. During this period, the VOC exercised enormous control over the economy of the colony and imposed high and unpopular taxes in an effort to offset the high costs of running the colony. For much of the Dutch rule in the Cape, income inequality is thought to have been amongst the highest in the pre-industrial world with pockets of wealthy living amongst an and poor farming community; the biggest drivers of this inequality-apart from labour and race relations—was wheat and wine production. The wealthy segments of society were dominated by wine producers, alcohol merchants and those farmers that managed to dominate wheat production.
Slavery played a large role in the early economy of the province until the British takeover of the Cape Colony in 1806 and the abolition of slavery in the British Empire in 1833. Slaves from across the Dutch Empire, in addition to political prisoners from the Dutch East Indies, were imported to work on the farms and workshops in the area of the colony closest to Cape Town. At the beginning of the 18th century, labour relations between Dutch colonists—particularly the Trekboers in the interior—and the native Khoisan was characterised by semi-cooperative symbiosis. By the beginning of the 19th century, the majority of the Khoisan had been turned into a class of wage labourers whose status and situation was similar to serfs. After 1833, the resistance of free burghers to the creation of a permanent wage-labour force as a result of the abolition of slavery as well as the'resistance of freed slaves and Khoi to full proletarianization' produced labour relations characterised by a greater degree of dependency.
The main export staple of the Cape Colony for most of its history was wine and brandy, but by 1845 it had been overtaken in value by wool. The wool boom continued into the 1850s and in addition to a speculative boom in copper-mining shares investment in the region grew considerably; this sparked the growth of the region's financial industry and by 1860 there were 23 local banks operating in fifteen towns. Increases in costs of production, falling wool prices, poor quality wools and severe drought from 1862 were among the causes of an economic recession that affected the region for most of the 1860s. Increasing competition from Port Elizabeth for the trade of the interior of Southern Africa encouraged Capetonian business interests to lobby for the construction of a railway. By 1865, nine towns in the region had a population of over 2000 people. After the MSP Suez Canal was constructed in 1869, Cape Town's importance as a refuelling point declined as the canal obviated the need to navigate the longer sea lane around the southern coast of Africa.
The recession of the 1860s and the construction of the canal forced the colony to search for new opportunities and adopt new products in rural production. The raising of Angora goats and ostriches for their mohair and feathers date from this period and became important export commodities; the discovery of diamonds and gold in the interior again increased investment in Cape Town and despite a long depression that plagued the western world for much of the 1870s the Western Ca
Mining industry of South Africa
Mining in South Africa was once the main driving force behind the history and development of Africa's most advanced and richest economy. Large-scale and profitable mining started with the discovery of a diamond on the banks of the Orange River in 1867 by Erasmus Jacobs and the subsequent discovery and exploitation of the Kimberley pipes a few years later. Gold rushes to Pilgrim's Rest and Barberton were precursors to the biggest discovery of all, the Main Reef/Main Reef Leader on Gerhardus Oosthuizen's farm Langlaagte, Portion C, in 1886, the Witwatersrand Gold Rush and the subsequent rapid development of the gold field there, the biggest of them all. Diamond and gold production are now well down from their peaks, though South Africa is still number 5 in gold but remains a cornucopia of mineral riches, it is the world's largest producer of chrome, platinum and vermiculite. It is the second largest producer of ilmenite, palladium and zirconium, it is the world's third largest coal exporter. South Africa is a huge producer of iron ore.
Due to a history of corruption and maladministration in the South African mining sector, ANC secretary-general Gwede Mantashe announced at the beginning of 2013 that mining companies misrepresenting their intentions could have their licences revoked. Diamond and gold discoveries played an important part in the growth of the early South African economy. A site northeast of Cape Town was discovered to have rich deposits of diamonds, thousands rushed to the area of Kimberley in an attempt to profit from the discovery; the British annexed the region of Griqualand West, an area which included the diamond fields. In 1868, the republic attempted to annex areas near newly discovered diamond fields, drawing protests from the nearby British colonial government; these annexations led to the First Boer War of 1880-1881. Gold was discovered in the area known as Witwatersrand, triggering what would become the Witwatersrand Gold Rush of 1886. Like the diamond discoveries before, the gold rush caused thousands of foreign expatriates to flock to the region.
This heightened political tensions in the area contributing to the Second Boer War in 1899. Ownership of the diamond and gold mines became concentrated in the hands of a few entrepreneurs of European origin, known as the Randlords. South Africa's and the world's biggest diamond miner, De Beers, was funded by baron Nathaniel Mayer Rothschild in 1887, Cecil Rhodes became the Founding Chairman of the board of directors in 1888. Cecil Rhodes' place was taken by sir Ernest Oppenheimer, co-founder of the Anglo-American Corporation with J. P. Morgan; the gold mining industry continued to grow throughout much of the early 20th century contributing to the tripling of the economic value of what was known as the Union of South Africa. In particular, revenue from gold exports provided sufficient capital to purchase much-needed machinery and petroleum products to support an expanding manufacturing base; as of 2007, the South African mining industry employs 493,000 workers. The industry represents 18% of South Africa's $588 billion USD Gross Domestic Product.
South Africa is the world's third largest coal exporter, much of the country's coal is used for power production. 77% of South Africa's energy needs are provided by coal. South Africa accounted for 15% of the world's gold production in 2002 and 12% in 2005, though the nation had produced as much as 30% of world output as as 1993. Despite declining production, South Africa's gold exports were valued at $3.8 billion USD in 2005. The US Geological Survey estimated in that as of 2002, South Africa held about 50% of the world's gold resources, 38% of reserves. In July 2018, Mineral Council of South Africa announced, 75% of mines in South Africa are now unprofitable due to decline in gold reserves. Among the nation's gold mines are two of the deepest mines in the world; the East Rand Mine, in Boksburg, extends to a depth of 3,585 metres. A 4-metre shallower mine is located at TauTona in Carletonville, though plans are in place to begin work on an extension to the TauTona mine, bringing the total depth to over 3,900 metres and breaking the current record by 127 feet.
At these depths the temperature of the rocks is 140 °F. The gold in the Witwatersrand Basin area was deposited in ancient river deltas, having been washed down from surrounding gold-rich greenstone belts to the north and west. Rhenium-osmium isotope studies indicates that the gold in those mineral deposits came from unusual three billion year old mantle sourced intrusions known as komatiites present in the greenstone belts; the Vredefort Dome impact which lies within the basin and the nearby Bushveld Igneous Complex are both about a billion years younger than the interpreted age of the gold. Since the Kimberley diamond strike of 1868, South Africa has been a world leader in diamond production; the primary South African sources of diamonds, including seven large diamond mines around the country, are controlled by the De Beers Consolidated Mines Company. In 2003, De Beers operations accounted for 94% of the nation's total diamond output of 11,900,000 carats; this figure includes industrial diamonds.
Diamond production rose in 2005 to over 15,800,000 carats. South Africa produces more platinum and similar metals than any other nation. In 2005, 78% of the world's platinum was produced in South Africa, along with 39% of the world's palladium. Over 163,000 kilograms of platinum was produced in 2010, generating export revenues of $3.82 billion USD. Palladium is produce
Economy of South Africa
The economy of South Africa is the second largest in Africa, after Nigeria. It is one of most industrialized countries in Africa. South Africa is an upper-middle-income economy by the World Bank – one of only four such countries in Africa. Since 1996, at the end of over twelve years of international sanctions, South Africa's Gross Domestic Product tripled to peak at $400 billion in 2011, but has since declined to $295 billion in both 2016 and 2017. In the same period, foreign exchange reserves increased from $3 billion to nearly $50 billion creating a diversified economy with a growing and sizable middle class, within two decades of ending apartheid. South African state owned enterprises play a significant role in the country's economy with the government owning a share in around 700 SOEs involved in a wide array of important industries. In 2016 the top five challenges to doing business in the country were inefficient government bureaucracy, restrictive labour regulations, a shortage of skilled workers, political instability, corruption, whilst the country's strong banking sector was rated as a positive feature of the economy.
The nation is amongst the G-20, is the only African member of the group. The formal economy of South Africa has its beginnings in the arrival of Dutch settlers in 1652 sent by the Dutch East India Company to establish a provisioning station for passing ships; as the colony increased in size, with the arrival of French Huguenots and German citizens, some of the colonists were set free to pursue commercial farming, leading to the dominance of agriculture in the economy. At the end of the 18th century, the British annexed the colony; this led to the Great Trek, spreading farming deeper into the mainland, as well as the establishment of the independent Boer Republics of Transvaal and the Orange Free State. In 1870 diamonds were discovered in Kimberley, while in 1886 some of the world's largest gold deposits were discovered in the Witwatersrand region of Transvaal transforming the economy into a resource-dominated one; the British annexed the area as a result of the Boer War which witnessed the placement of Boer women and children in British-built concentration camps.
The country entered a period of industrialization during this time, including the organization of the first South African trade unions. The country soon started putting laws distinguishing between different races in place. In 1948 the National Party won the national elections, started implementing an stricter race-based policy named Apartheid dividing the economy into a privileged white one, an impoverished black one; the policy was criticised and led to crippling sanctions being placed against the country in the 1980s. South Africa held its first multi-racial elections in 1994, leaving the newly elected African National Congress government the daunting task of trying to restore order to an economy harmed by sanctions, while integrating the disadvantaged segment of the population into it; the 1994 government inherited an economy wracked by long years of internal conflict and external sanctions. The government refrained from resorting to economic populism. Inflation was brought down, public finances were stabilised, some foreign capital was attracted.
However, growth was still subpar. At the start of 2000 President Thabo Mbeki vowed to promote economic growth and foreign investment by relaxing restrictive labour laws, stepping up the pace of privatisation, raising governmental spending and cutting interest rates from 1998 levels, his policies faced strong opposition from organised labour. From 2004 onward economic growth picked up significantly. In April 2009, amid fears that South Africa would soon join much of the rest of the world in the late-2000s recession, Reserve Bank Governor Tito Mboweni and Minister of Finance Trevor Manuel differed on the matter: whereas Manuel foresaw a quarter of economic growth, Mboweni predicted further decline: "technically," he said, "that's a recession." In 2009 the Nobel-Prize-winning economist Joseph Stiglitz warned South Africa that inflation targeting should be a secondary concern amid the global financial crisis of 2007–2009. South Africa, unlike other emerging markets, has struggled through the late 2000s recession, the recovery has been led by private and public consumption growth, while export volumes and private investment have yet to recover.
The long-term potential growth rate of South Africa under the current policy environment has been estimated at 3.5%. Per capita GDP growth has proved mediocre, though improving, growing by 1.6% a year from 1994 to 2009, by 2.2% over the 2000–09 decade, compared to world growth of 3.1% over the same period. The high levels of unemployment, at over 25%, inequality are considered by the government and most South Africans to be the most salient economic problems facing the country; these issues, others linked to them such as crime, have in turn hurt investment and growth having a negative feedback effect on employment. Crime is considered a major or severe constraint on investment by 30% of enterprises in South Africa, putting crime among the four most mentioned constraints. In April 2017, political tensions in the country arose over the sacking of nine cabinet members including Minister of Finance Pravin Gordhan by the president Jacob Zuma; the finance minister was seen as central to efforts to restore confidence in South Africa.
As a result of the tensions, S&P Global cut South Africa's credit rating to junk status on Monday 3 April 2017. Fitch Ratings followed suit on Friday 7 April 2017 and cut the country's credit status to the sub-inves
Disinvestment from South Africa
Disinvestment from South Africa was first advocated in the 1960s, in protest of South Africa's system of apartheid, but was not implemented on a significant scale until the mid-1980s. The disinvestment campaign, after being realized in federal legislation enacted in 1986 by the United States, is credited by some as pressuring the South African Government to embark on negotiations leading to the dismantling of the Apartheid system. In November 1962, the United Nations General Assembly passed Resolution 1761, a non-binding resolution establishing the United Nations Special Committee against Apartheid and called for imposing economic and other sanctions on South Africa. All Western nations were unhappy with the call for sanctions and as a result boycotted the committee. Following this passage of this resolution the UK-based Anti-Apartheid Movement spearheaded the arrangements for an international conference on sanctions to be held in London in April 1964. According to Lisson, "The aim of the Conference was to work out the practicability of economic sanctions and their implications on the economies of South Africa, the UK, the US and the Protectorates.
Knowing that the strongest opposition to the application of sanctions came from the West, the Committee made every effort to attract as wide and varied a number of speakers and participants as possible so that the Conference findings would be regarded as objective."The conference was named the International Conference for Economic Sanctions Against South Africa. This conference, Lisson writes, established the necessity, the legality and the practicability of internationally organised sanctions against South Africa, whose policies were seen to have become a direct threat to peace and security in Africa and the world, its findings pointed out that in order to be effective, a programme of sanctions would need the active participation of Britain and the US, who were the main obstacle to the implementation of such a policy. The conference was not successful in persuading Britain to take up economic sanctions against South Africa though. Rather, the British government "remained firm in its view that the imposition of sanctions would be unconstitutional'because we do not accept that this situation in South Africa constitutes a threat to international peace and security and we do not in any case believe that sanctions would have the effect of persuading the South African Government to change its policies'".
The AAM tried to make sanctions an election issue in the 1964 General Election in Britain. Candidates were asked to state their position on economic sanctions and other punitive measures against the South African government. Most candidates who responded answered in the affirmative. After the Labour Party sweep to power though, commitment to the anti-apartheid cause dissipated. In short order, Labour Party leader Harold Wilson told the press that his Labour Party was "not in favour of trade sanctions because if effective, they would harm the people we are most concerned about - the Africans and those white South Africans who are having to maintain some standard of decency there". So, Lisson writes that the "AAM still hoped that the new Labour Government would be more sensitive to the demands of public opinion than the previous Government." But by the end of 1964, it was clear that the election of the Labour Party had made little difference in the government's overall unwillingness to imposing sanctions.
Lisson summarizes the situation at the UN in 1964: At the UN, Britain refused to accept that the situation in South Africa fell under Chapter VII of the Charter. Instead, in collaboration with the US, it worked for a worded appeal on the Rivonia and other political trials to try to appease Afro-Asian countries and public opinion at home and abroad. According to Lisson, Britain's rejection was premised on its economic interests in South Africa, which would be put at risk if any type of meaningful economic sanctions were put in place. In 1977, the voluntary UN arms embargo became mandatory with the passing of United Nations Security Council Resolution 418. An oil embargo was introduced on 20 November 1987 when the United Nations General Assembly adopted a voluntary international oil embargo. Knight writes that anti-apartheid movement in the U. S. found. The movement responded by organized lobbying of individual businesses and institutional investors to end their involvement with or investments in the apartheid state as a matter of corporate social responsibility.
This campaign was coordinated by several faith-based institutional investors leading to the creation of the Interfaith Center on Corporate Responsibility. An array of celebrities, including singer Paul Simon participated; the key instrument of this campaign was the so-called Sullivan Principles, authored by and named after the Rev. Dr. Leon Sullivan. Leon Sullivan was an African-American preacher in Philadelphia who, in 1977, was a board member of the corporate giant General Motors. At that time, General Motors was the largest employer of blacks in South Africa; the principles required that the corporation ensure that all employees are treated and in an integrated environment, both in and outside the workplace, regardless of race, as a condition of doing business. These principles directly conflicted with the mandated racial discrimination and segregation policies of apartheid-era South Africa, thus making it impossible for businesses adopting the Sullivan Principles to continue doing business there.
While the anti-Apartheid movement lobbied individual businesses to adopt and comply with the S