1) Structure of the Economy
1.1) Economic sectors (primary, secondary, tertiary and quaternary)
Primary sector
→ extracts natural resources including basic foods and raw materials
→ includes agriculture, forestry, fishing, hunting, mining, and quarrying.
*subsistence farming = primary activity even tho money isn't earned
Secondary sector
→ the processing of primary raw materials to produce manufactured goods
→ includes metal working, building, construction; manufacturing of clothes cars, canned foods
Tertiary sector
→ provides services
→ includes human services: health, tourism, recreation, entertainment, local government, police
+ military
→ includes physical services: banking, financial services, libraries, retailing, goods transport,
public transport + garbage removal.
Quaternary sector
→ involves intellectual activities like research and info tech
→ includes data processing, dissemination of info, consulting, environmental management +
resource-conservation research
1.2) Contribution of various economic sectors to the South African economy
To measure importance/ value of economic sectors to economy:
1. Employment: how many people have jobs
2. The value of the goods + services produced
(don’t have to know stat % )
Primary Sector
● Mining + agriculture = NB contributors
● Mining has decreased, but international demand for raw materials = NB commodity.
● Agriculture under strain due to the fluctuating market + rand-value, rising
production costs, low income due to weather inconsistencies + competitive
international market.
● Fishing and forestry activities contribute much less
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, ● 7% employment in SA (2011)
● Produced 12% of GDP of SA (2011)
Secondary Sector
● The metal, engineering industries + construction = NB contributors eg. motor
industry.
● 22% employment in SA (2011)
● Produced 21% of GDP of SA (2011)
Tertiary Sector
● Finance, transport, communications, tourism, real estate + government = NB
contributors to the GDP
● 68% employment in SA (2011)
● Produced 61% of GDP of SA (2011)
Quaternary Sector
● 3% employment in SA (2011)
● Produced 6% of GDP of SA (2011)
Gross Domestic Product total value of all goods and services produced in a country in
(GDP) one year.
Economy a country’s or household’s income and how it’s spent
1.3) Use of current statistical and graphical information
Why is statistical data valuable?
1. Understanding economics and geography of a country
2. Gives perspective on a region
E.g → comparing different GDP/ employment rates of many provinces or countries
3. Planning funding + future development of a province
4. Identifying economic strengths + weaknesses of a country/ province
5. Illustrating change over time
E.g → SA’s developing economy
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, 2) Agriculture
Forms of Agriculture
• Livestock farming (animal production and animal grazing)
• Horticulture (fruit, vegetables, flowers)
• Field Crops (maize, wheat)
• Viticulture (grapes and wine)
● Agriculture is a primary economic activity
● Land is cultivated for crop production and livestock is farmed for food production
● New methods enhance food security and limit the risks and vulnerability
experienced in this economic sector
2.1) Contribution of agriculture to the South African economy
→ employment
→ farm products provide raw materials for industries; supports further employment
→ indirect employment (truck drivers, supermarket cashiers, factory workers)
→ contributes to economy / GDP
→ earns SA profit through exports
→Supports the development of services in the secondary and tertiary sectors because it
requires transport and delivers raw materials for manufacturing
Commercial Farming Farming for profit where food is produced on a large scale
Subsistence Farming Takes place on a small scale and agricultural products are
produced to be consumed by family and community
2.2) The role of small-scale farmers and large-scale farmers
Types of farming in SA:
1. Well-developed large-scale commercial farming
2. Smaller-scale communal farming
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