WP 201803 - Understanding and Characterizing the Services Sector in South Africa: An Overview
Haroon Bhorat, François Steenkamp, Christopher Rooney, Nomsa Kachingwe and Adrienne Lees
Date of Publication:
The South African services sector is large and growing. This coupled with declining employment shares in manufacturing and mining (i.e. deindustrialisation) suggests that South Africa is a de facto service-orientated economy. Employment patterns in services reveal a segmentation that is characterised by high-productivity, high-wage services, low-productivity, low-wage services, and government services. There has been sustained growth in services exports in the post-1994 period but the composition is biased toward traditional services. Increased entry into developing country markets is characterised by increasingly sophisticated services. A key driver of export growth is the expansion of FDI into developed country markets, and increasingly, into developing country markets, particularly African markets.