1. Learning objectives
Structure of SA’s Economy
Click here for a video playlist on Economic Sectors /GDP
Economic Sectors
Economic Sectors contribution to the SA economy
Contribution of employment to the SA economy
How can industry be described as a system?
What links exist between different industries?
What factors influence the location of industry?
2. How can industrial activity be classified?
There are many different types of industry. We can classify
industry into three main categories:
Primary
Secondary
These industries
extract raw materials
directly from the
earth or sea.
These industries
process and
manufacture
products from raw
materials.
Source: Boardworks Educational Software
Tertiary
These industries
provide a
service.
4. What is a quaternary industry?
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.
Source: Boardworks Educational Software
5. 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
Financial planning
How many different examples of quaternary
sector businesses can you think of as a class?
6. Learning objectives
Structure of SA’s Economy
Economic Sectors
Economic Sectors contribution to SA economy
How 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?
7. Economics sectors contribution to the economy
The total contribution made by the Primary, Secondary and
Tertiary sectors to the South African economy in 2012:
Economic Sector
Primary
Contribution
to GDP (%)
11.8
Sub-sectors
Agriculture
Mining
Secondary
21
Manufacturing
Utilities (water, electricity)
Construction
Tertiary
67.2
Trade, retail and wholesale
Transport and comms
Finance and real estate
Government services
Personal services
Contribution
to sector (%)
2.4
9.4
17
72
23
14.2
8.4
21.6
16
6.9
100%
The total annual contribution made by all these sectors
to the economy is referred to as the Gross Domestic
Product (GDP).
8. Analysis of South Africa’s GDP
Tertiary activities (67%)
SA’s banking and financial industry is world class
SA has become an important location of call
centres.
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%)
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..
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.
2012 Statistics
9. Learning objectives
Structure of SA’s Economy
Economic Sectors
Economic Sectors contribution to the SA economy
Contribution 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?
10. Number of people employed in the various sectors
The % of people employed in the Primary, Secondary and
Tertiary sectors of the South African economy in 2012:
Economic Sector
Primary
Contribution
to GDP (%)
11.8
Sub-sectors
Agriculture
Mining
Secondary
21
Manufacturing
Utilities (water, electricity)
Construction
Tertiary
67.2
Trade, retail and wholesale
Transport and comms
Finance and real estate
Government services
Personal services
Contribution
to sector (%)
4.7
2.5
12.3
0.6
7.9
22.7
5.9
12.9
21.5
9.3
100%
The total annual contribution made by all these sectors
to the economy is referred to as the Gross Domestic
Product (GDP).
11. How do global employment patterns vary?
The balance of jobs between the three categories in a particular
area or country is called the employment structure.
Country
South Africa
Brazil
Cameroon
France
India
Italy
Japan
UK
USA
Primary (%) Secondary (%)
7.1
23
79
4
60
5
5
1
2
21,7
24
13
24
17
32
25
25
24
Tertiary (%)
71.2
53
17
72
23
63
70
74
74
A major reason for some changes in employment
structure is mechanization – the use of machines to do
jobs rather than people.
13. Learning objectives
Structure of SA’s Economy
Economic Sectors
Economic Sectors contribution to the SA economy
How 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?
14. How can industry be described as a system?
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.
PROCESSES
INPUTS
These can be
These are the
physical, human and activities that are
economic inputs.
involved.
Source: Boardworks Educational Software
OUTPUTS
These are the
finished products
and any waste.
16. Examination question
Study the photograph.
What type of industrial activity is taking place here?
Describe the links between secondary and tertiary
industries.
Source: Boardworks Educational Software
17. Learning objectives
Structure of SA’s Economy
Economic Sectors
Economic Sectors contribution to the SA economy
How 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?
19. Learning objectives
Structure of SA’s Economy
Economic Sectors
Economic Sectors contribution to the SA economy
How 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?
20. How do industries choose their location?
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.
23. Examination question
Study the diagram showing factors that are important for the
location of a manufacturing industry.
Energy
Components
Capital
Transport
Finished
products
What is manufacturing industry?
Complete the missing boxes for inputs and outputs.
What are ‘components’?
Source: Boardworks Educational Software
25. Industry classification
1
2 Oil drilling
Study the photographs.
Categorize these industries under the
following headings: primary, secondary
and tertiary.
Are any of these industries quaternary?
4
3 NAPP Pharmaceuticals
Research
6
7
5
