Resources and Trade in South Africa

South Africa is a resource rich place! Much of the nation’s economy depends on both global and regional trade of the resources existing in the country. Diamonds, gold, coal and various metals are just a few of the natural resources abounding in the nation.

Much of South Africa’s wealth is in its mining. One major mining export from South Africa is coal. Coal is an enormously valuable export particularly to Europe and Asia as a source for generating electricity. Coal is also the main power source for South Africa’s generation of electricity. South Africa is also “the world’s largest producer of platinum and chromium” and a large producer of diamonds.[1]

Overwhelmingly, however, gold is accepted as the most valuable resource available in South Africa. As a matter of fact, "South Africa is the largest producer of gold" in the world [1]. While the production has decreased in recent years, it is still considered the most important mineral. Many abandoned mines can be seen all over the city of Johannesburg as shown in the picture I took below. Gold production hit its peak in the early 1970s, and centered around the capital city of Johannesburg.[1] In more recent years, gold mining and production has spread and takes place a greater distance from this location and centers around the cities of Klerksdorp and Evander.[1]

African trade routes have always revolved largely around international trade. Because of the need for global trade routes to make a profit from the main export, precious metals, trade routes were arranged to make trade easy with the main international partners: the United States, the United Kingdom, Germany, and Japan.[1] While global trade is huge for the nation, regional trade within the borders is becoming increasingly important in recent years. After the massive international ethnic tensions revolving around the Apartheid, South Africans have chosen to support trade within the borders to grow the local economy.

Works Cited:

[1] "South Africa" http://www.britannica.com/EBchecked/topic/555568/South-Africa/44033/Resources-and-power#toc260129