South Africa is the southernmost country on the African Continent. South Africa is bordered by six countries with which one is an enclave. These bordering countries therein are Zimbabwe, Mozambique, Namibia, Botswana, Lesotho, and Swaziland. Lesotho, which is surrounded by South Africa, is an enclave. South Africa is governed by three official capitals, Pretoria, Bloemfontein and Cape Town.

Despite not being a capital city, Johannesburg, located in the inland province of Gauteng, is the country’s largest city and has a population of almost 4.5 million people.

South Africa is one of the most geographically varied countries on the continent, with a coastline that stretches 1,600 miles, vast desert plains and mountainous terrain. It is the world’s leader in mining and minerals and has nearly 90% of the platinum metals and 41% of the gold on earth.

According to the African Development Bank (ADB), the country is expected to grow by 0.2% in 2023 and 1.5% in 2024. Per the continental growth rates, these figures are not encouraging for the third-largest economy among the 54 sovereign states. Nigeria and Egypt are the first and second economies.

The slow growth is attributed to power cuts and the ramifications of the Ukraine war. Inflation is, however, expected to ease to 5.9% in 2023 and 4.5% in 2024. The bank continues to see weak management of state enterprises and power supply constraints as banes in the South African economy. Unemployment and inequality remain high.

South Africa has the most industrialized, technologically advanced, and diversified economy in Africa. It is a middle-income emerging market with a rich supply of natural resources, with well-developed financial, legal, communications, energy, and transport sectors. The country's economy is essentially based on private enterprise.

Security Issues:
South Africa is facing multi-faced security risks. High crime rates driven by unemployment and poverty, collapsing infrastructure, political insecurity and tension, and an appetite for lawlessness, pose real threats to domestic stability. ISIS facilitation networks and cells remain a threat after the South African government first publicly acknowledged them in 2016, however, there have not been any incidents of terrorist attacks.

Verdict:
These notwithstanding South Africa has great potential to expand its economy as space remains for expansion. The country’s rich natural resources and robust tourism make it one of the most attractive places in the world. With effective and efficient political leadership and result-oriented management of state enterprises, the country's great potential could be realized. Risk is at medium levels.