Structure of SA economy

Economic SectorsEconomic Sectors contribution to the SA economyContribution of employment to the SA economyHow can industry be described as a system?What links exist between different industries?What factors influence the location of industry?

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es Structure of SA’s Economy

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There are many different types of industry. We can classify industry into three main categories:

Secondary

These industries provide a service.

These industries extract raw materials directly from the earth or sea.

These industries process and manufacture products from raw materials.

Primary Tertiary

How can industrial activity be classified?

Source: Boardworks Educational Software

Classification of industry

Source: Boardworks Educational Software

There are also quaternary industries.

These industries incorporate a high degree of research and technology in their processes and employ highly qualified people.

Biotechnology and computer programming are examples of quaternary industries.

What is a quaternary industry?

Source: Boardworks Educational Software

The quaternary sector

Within the tertiary sector is the quaternary sector.

This has emerged in recent years and describes businesses which provide information services, including:

ICT services

Consultancy

Research and development

Scientific research

How many different examples of quaternary sector businesses can you think of as a class?

Financial planning

Economic SectorsEconomic Sectors contribution to SA economyHow do global employment patterns vary?How can industry be described as a system?What links exist between different industries?What factors influence the location of industry?

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The total contribution made by the Primary, Secondary and Tertiary sectors to the South African economy in 2012:

The total annual contribution made by all these sectors to the economy is referred to as the Gross Domestic Product (GDP).

Contribution to GDP (%)

Sub-sectors Contribution to sector (%)

Primary Agriculture 2.411.8Mining 9.4

Secondary 21 177223

Tertiary 67.2 14.28.421.616

Economic Sector

Economics sectors contribution to the economy

Manufacturing

Utilities (water, electricity)

Construction

Trade, retail and wholesale

Transport and comms

Finance and real estate

Government services

Personal services 6.9100%

Analysis of South Africa’s GDP

Primary Activities (12%)Mining (9.4%)

The mining and minerals sector remains a vital part of the economy. SA is the leading producer of platinum, vanadium, ferrochromium, uranium, lead and copper. The gold mining industry is in decline as production costs hit the marginal mines and as several mines reach the end of their production lives.

Agriculture (2.4%)

SA has the most modern and diverse agricultural sector in Africa. The country is a top producer of GM (genetically modified) crops, which has resulted in a reduction in the use of harmful insecticides.

SA is the eighth largest producer of wine in the world.

Secondary Activities 21%Manufacturing (13.8%)

The metal and engineering industries dominate the manufacturing sector. SA also produces a range of quality manufactured goods clothing, furniture canned goods and tyres. The automotive industry is showing growth and domestic production is expected to increase with the new automotive production and development programme..

Tertiary activities (67%)

SA’s banking and financial industry is world class SA has become an important location of call centres.

2012 Statistics

Economic SectorsEconomic Sectors contribution to the SA economyContribution of employment to SA economy?How can industry be described as a system?What links exist between different industries?What factors influence the location of industry?

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es Structure of SA’s Economy

The % of people employed in the Primary, Secondary and Tertiary sectors of the South African economy in 2012:

The total annual contribution made by all these sectors to the economy is referred to as the Gross Domestic Product (GDP).

Contribution to GDP (%)

Sub-sectors Contribution to sector (%)

Primary Agriculture 4.711.8Mining 2.5

Secondary 21 12.30.6

7.9Tertiary 67.2 22.7

5.912.921.5

Economic Sector

Number of people employed in the various sectors

Manufacturing

Utilities (water, electricity)

Construction

Trade, retail and wholesale

Transport and comms

Finance and real estate

Government services

Personal services 9.3100%

The balance of jobs between the three categories in a particular area or country is called the employment structure.

A major reason for some changes in employment structure is mechanization – the use of machines to do jobs rather than people.

Primary (%) Secondary (%) Tertiary (%)

South Africa 7.1 21,7 71.2Brazil 23 24 53Cameroon 79 13 17France 4 24 72India 60 17 23Italy 5 32 63Japan 5 25 70UK 1 25 74USA 2 24 74

Country

How do global employment patterns vary?

Interpreting graphs

Economic SectorsEconomic Sectors contribution to the SA economyHow do global employment patterns vary?How can industry be described as a system?What links exist between different industries?What factors influence the location of industry?

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es Structure of SA’s Economy

Think of industry as a cake-making process!

For a company to be profitable, the value of the outputs must be greater than the cost of the inputs.

INPUTS PROCESSES OUTPUTSThese can be physical, human and economic inputs.

These are the activities that are involved.

These are the finished products and any waste.

How can industry be described as a system?

Source: Boardworks Educational Software

Industrial system for a clothing factory

Source: Boardworks Educational Software

What type of industrial activity is taking place here?Describe the links between secondary and tertiary industries.

Examination question

Study the photograph.

Source: Boardworks Educational Software

Economic SectorsEconomic Sectors contribution to the SA economyHow do global employment patterns vary?How can industry be described as a system?What links exist between different industries?What factors influence the location of industry?

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es Structure of SA’s Economy

Links between different industries

Economic SectorsEconomic Sectors contribution to the SA economyHow do global employment patterns vary?How can industry be described as a system?What links exist between different industries?What factors influence the location of industry?

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es Structure of SA’s Economy

Deciding where to locate an industry requires weighing up a large number of factors.

The owner will want to locate at a site that will give the greatest profit.

How do industries choose their location?

Factors influencing location of industry

Source: Boardworks Educational Software

Location of different industries

Energy

Capital

Transport

Finished products

Study the diagram showing factors that are important for the location of a manufacturing industry.

What is manufacturing industry?Complete the missing boxes for inputs and outputs.What are ‘components’?

Components

Examination question

Source: Boardworks Educational Software

Industry anagrams

Oil drilling

Categorize these industries under the following headings: primary, secondary and tertiary. Are any of these industries quaternary?

NAPP PharmaceuticalsResearch

Industry classification

Study the photographs.1

35

4

7

6

2

Which sector?

Source: Boardworks Educational Software