The mining industry has always played a key role in attracting foreign investment. South Africa's infrastructure is also highly developed compared to other African states, and the country is seen as an entry point for the global African market.
South Africa's fiscal leeway has been limited by a decade of poor growth combined with the dispersion of and shortfalls in tax revenues, as well as increased debt and spending due to the public health crisis. Poorly managed guarantees for state-owned enterprises have also weighed on the state budget. As a result, public debt has risen sharply in recent years.
Over the past decade, South Africa's economic growth has remained very weak. The country has failed to address long-standing structural issues such as inequality, poverty and unemployment, and the jobless rate today remains as high as ever (around 30% for several years). South Africa is aiming for an unemployment rate of 6% by 2030, an unrealistic target given the low growth the country has been experiencing for a number of years coupled with the ongoing impact of COVID-19. In the medium term, the country's economic situation is likely to be heavily influenced by the price of commodities.