APPENDIX A COUNTRY DATA 1. Profile Geography: Located at the Southern tip of the African Continent, mostly temperate climate although some extremes in the desert region. Approximate area is 472,359 square miles, about the size of California, New Mexico and Arizona. Population: 39 million. Racial composition: 70 percent Black; 18 percent White; 9 percent Coloured (mixed race ) and 3 percent Asian. The population growth rate in 1993 was 2.38 percent. Religions: Mostly Dutch reformed, other Protestant and Catholic denominations. Significant Jewish community among Whites and a substantial number of Muslims and some Hindus among the Asian population. Most Blacks are Christians, but a minority still practice traditional African religions. Government: A government of national unity was elected in South Africa's first non-racial democratic elections held from April 27-29, 1994. Headed by State President Mandela and his two deputies, the government is operating under an interim constitution. The new two chamber parliament is comprised of a National Assembly and a Senate. The Parliament is tasked with writing a new constitution for the country. President Mandela's term is for five years. Languages: There are eleven official languages. They are Afrikaans, English, Ndebele, North Sotho, Shangaan/Tsonga, South Sotho, Swati, Tswana, Venda, Xhosa, and Zula. Commercial Environment: South Africa's economy is rather inward- looking and protected, although few commercial restrictions are placed on repatriation of profits and dividends. Mercantile, company and insolvency statutes are based on English law, while the rest of the legal system generally derives from Roman-Dutch law. Work Week: Monday through Friday, 8:00/8:30 a.m. to 5:00 p.m. South Africans are punctual to meetings and are generally open to meeting over breakfast or lunch. 2. Domestic Economy for 1993 and 1994 & 1995 estimates (In billions of U.S. dollars unless noted) Key Economic Indicators 1993 1994 est. 1995 est. Gross Domestic Product (1) 111.8 115.2 119.8 Real GDP growth (percent) 1.1 3.0 4.0 GDP per capita (USD) (3) 2815.0 2760.0 2810.0 Government Deficit as a percent of GDP 6.8 7.0 7.0 Consumer Price Index percentage change (2) 9.7 8.0 9.5 Unemployment, including homelands (percent) (3) 11.9 12.2 12.5 Gold and Foreign Exchange Reserves (2) 2.8 2.5 1.4 Average Exchange Rate (rand/dollars) 3.3 3.6 3.7 Foreign Debt 16.7 N/A N/A Debt Service Ratio 6.4 7.0 N/A U.S. Economic/Military Assistance (millions) 80.0 206.0 200.0 (1) Current prices; increases in GDP at current prices are due to domestic inflation not reflected in the dollar/rand exchange rate. (2) Year-end data used. (3) Official statistics depending on population are unreliable, often excluding the so-called independent homelands. Most economists believe that total unemployment in the economically active population now exceeds 40 percent: government estimates are outdated. Sources: South African Reserve Bank Quarterly Bulletin - March 1994 and private bank forecasts. 3. Trade for 1993,1994 & 1995 (estimates) (In billions of U.S. dollars unless noted) 1993 1994 1995 Total SA Exports (F.O.B.) 24.6 24.8 25.7 Total SA Imports (F.O.B.) 18.2 19.0 20.5 U.S. Exports to SA 2.2 2.3 2.5 U.S. Imports from SA 1.8 1.9 2.0 U.S. share of SA imports (percent) 12.1 12.1 12.2 SA total imports of manufactured goods 10.8 10.7 11.0 SA imports of manufactured goods from the U.S. 1.8 1.9 2.3 U.S. share of manufactured imports (percent) 16.6 17.8 21.0 Projected average annual growth rate from the world (percent) -0.5 1.6 4.0 Projected average annual growth rate from the U.S. (percent) 10.0 8.0 10.0 SA total imports of agricultural goods 1.4 NA NA Imports of agricultural goods from the U.S. (millions) 268.0 NA NA U.S. share of agricultural imports (percent) 19.2 NA NA SA Agricultural trade balance with the U.S. (millions) -110.0 30.0 30.0 Trade balance with three leading partners in 1992 (millions) GERMANY U.S.A. U.K. Imports 2,786.0 2,420.0 1,535.0 Exports 1,999.0 1,701.0 1,585.0 Balances (787.0) (721.0) 50.0 Principle U.S. Exports Automatic data processing equipment (8469/8471/8521) (Harmonized Tariff Schedule) Aircraft & aircraft parts (8802/8803/8805) Agricultural machinery (8432/8433) Mining Equipment (8428/8430/8431) Medical Equipment (9003/18/30/31/32) Principle U.S. Imports Platinum Group Metals (7110) Precious Metals (7106) Base Metals (7107) Gold (7108) Sources: Official statistics of the U.S. Department of Commerce. South African Reserve Bank Quarterly Bulletin - March 1994 and private bank forecasts. 4. Foreign Direct Investment Statistics Official statistics on foreign direct investment in South Africa, and foreign investment by South African entities, are published by region, not by country, and by industrial sector. Following are latest data available: Foreign Direct Investment in South Africa By Region (USD million, year-end 1992) EEC 6,749.5 Europe, other than EEC 1,119.7 North and South America 1,140.4 Africa 127.3 Asia 150.4 Oceania 84.5 Unallocated .4 Total 9,372.2 Foreign Direct Investment in South Africa By Industry (USD million, year-end 1992) Agriculture, Forestry, Fishing 77.9 Mining 542.9 Manufacturing 3,874.3 Construction 14.4 Trade, Accommodation 1,728.9 Transport, Communication 91.2 Finance, Insurance, Business Services 3,035.5 Social Services 7.4 Total 9,372.5 South African Foreign Direct Investment By Region (USD million, year-end 1992) EEC 13,939.5 Europe, other than EEC 3,700.0 North and South America 192.9 Africa 914.9 Asia 113.6 Oceania 3.5 Unallocated 1.1 Total 18,865.5 Source: South African Reserve Bank, Quarterly Bulletin. Major Foreign Investors American, as well as other foreign investors, were under extreme pressure from the mid-1980's until recently to disinvest from 0South Africa. With the political reforms initiated in February 1990 and the satisfactory conclusion of the election in May 1994, companies are either coming back to reinvest in South Africa or exploring the possibility. According to the Investor Responsibility Research Center (IRRC) in Washington, the number of U.S. companies with direct investment in South Africa has declined from 342 in 1986 to 111 in 1992. The U.S. Department of Commerce reports that U.S. direct investment in South Africa declined from $1.5 billion to $1 billion over that period. U.S. Direct Investment in South Africa (USD million, year-end 1992) Petroleum * Manufacturing 501 Wholesale Trade 67 Banking 0 Other Finance * Services 5 Other 76 Total 871 *Proprietary information of Individual companies. Source: Country Reports on Economic Policy and Trade Practices South Africa