REPUBLIC OF SOUTH AFRICA

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U.S.-South African Relations / Additional Information

Until 1991, South African law divided the population into four major racial categories:Africans (black), whites, coloreds, and Asians. Although this law has been abolished, manySouth Africans still view themselves and each other according to these categories.Africans comprise about 75% of the population and are divided into a number of differentethnic groups. Whites comprise about 14% of the population. They are primarily descendantsof Dutch, French, English, and German settlers who began arriving at the Cape in the late17th century. Coloreds are mixed race people, primarily descending from the earliestsettlers and the indigenous peoples. They comprise about 9% of the total population.Asians descend from Indian workers brought to South Africa in the mid-19th century to workon the sugar estates in Natal. They constitute about 2% of the population and areconcentrated in the Kwazulu-Natal Province.

Education is in a state of flux. Under the apartheid system, schools were segregated,and the quantity and quality of education varied significantly across racial groups.Although the laws governing this segregation have been abolished, the long and arduousprocess of restructuring the country's educational system is just beginning. The challengeis to create a single nondiscriminatory, nonracial system which offers the same standardsof education to all people.

People have inhabited Southern Africa for thousands of years. Members of the Khoisanlanguage groups are the oldest surviving inhabitants of the land; however, only a few areleft in South Africa today, and they are located in the western sections. Most of today'sblack South Africans belong to the Bantu language group, which migrated south from centralAfrica, settling in the Transvaal region sometime before AD 100. The Nguni, ancestors ofthe Zulu and Xhosa, occupied most of the eastern coast by 1500.

The Portuguese were the first Europeans to reach the Cape of Good Hope, arriving in1488. However, permanent white settlement did not begin until 1652, when the Dutch EastIndia Company established a provisioning station on the Cape. In subsequent decades,French Huguenot refugees, the Dutch, and Germans began to settle in the Cape.Collectively, they form the Afrikaner segment of today's population. The establishment ofthese settlements had far-reaching social and political effects on the groups alreadysettled in the area, leading to upheaval in these societies and the subjugation of theirpeople.

By 1779, European settlements extended throughout the southern part of the Cape andeast toward the Great Fish River. It was here that Dutch authorities and the Xhosa foughtthe first frontier war. The British gained control of the Cape of Good Hope at the end ofthe 18th century. Subsequent British settlement and rule marked the beginning of a longconflict between the Afrikaners and the English.

Beginning in 1836, partly to escape British rule and cultural hegemony and partly outof resentment at the recent abolition of slavery, many Afrikaner farmers (Boers) undertooka northern migration which became known as the "Great Trek." This movementbrought them into contact and conflict with African groups in the area, the mostformidable of which were the Zulus. Under their powerful leader, Shaka (1787-1828), theZulus conquered most of the territory between the Drakensburg Mountains and the sea (nowKwazulu-Natal).

In 1828, Shaka was assassinated and replaced by his half-brother Dingane. In 1838,Dingane was defeated and deported by the Voortrekkers (people of the Great Trek) at thebattle of Blood River. The Zulus, nonetheless, remained a potent force, defeating theBritish in the historic battle of Isandhlwana before themselves being finally conquered in1879.

In 1852 and 1854, the independent Boer Republics of the Transvaal and Orange Free Statewere created. Relations between the republics and the British Government were strained.The discovery of diamonds at Kimberley in 1870 and the discovery of large gold deposits inthe Witwatersrand region of the Transvaal in 1886 caused an influx of European (mainlyBritish) immigration and investment. Many blacks also moved into the area to work in themines. The construction by mine owners of hostels to house and control their workers setpatterns that later extended throughout the region.

Boer reactions to this influx and British political intrigues led to the Anglo-BoerWars of 1880-81 and 1899-1902. British forces prevailed in the conflict, and the republicswere incorporated into the British Empire. In May 1910, the two republics and the Britishcolonies of the Cape and Natal formed the Union of South Africa, a self-governing dominionof the British Empire. The Union's constitution kept all political power in the hands ofwhites.

In 1912, the South Africa Native National Congress was formed in Bloemfontein andeventually became known as the African National Congress (ANC). Its goals were theelimination of restrictions based on color and the enfranchisement of and parliamentaryrepresentation for blacks. Despite these efforts, the government continued to pass lawslimiting the rights and freedoms of blacks.

In 1948, the National Party (NP) won the all-white elections and began passinglegislation codifying and enforcing an even stricter policy of white domination and racialseparation known as "apartheid" (separateness). In the early 1960s, following aprotest in Sharpville in which 69 protesters were killed by police and 180 injured, theANC and Pan-African Congress (PAC) were banned. Nelson Mandela and many otheranti-apartheid leaders were convicted and imprisoned on charges of treason.

The ANC and PAC were forced underground and fought apartheid through guerrilla warfareand sabotage. In May 1961, South Africa relinquished its dominion status and declareditself a republic. Later that year, it withdrew from the Commonwealth, in part because ofinternational protests against apartheid. In 1984, a new constitution came into effect inwhich whites allowed coloreds and Asians a limited role in the national government andcontrol over their own affairs in certain areas. Ultimately, however, all power remainedin white hands. Blacks remained effectively disenfranchised.

Popular uprisings in black and colored townships in 1976 and 1985 helped to convincesome NP members of the need for change. Secret discussions between those members andNelson Mandela began in 1986. In February 1990, State President F.W. de Klerk--who hadcome to power in September 1989--announced the unbanning of the ANC, the PAC, and allother anti-apartheid groups. Two weeks later, Nelson Mandela was released from prison.

In 1991, the Group Areas Act, Land Acts, and the Population Registration Act--the lastof the so-called "pillars of apartheid"--were abolished. A long series ofnegotiations ensued, resulting in a new constitution promulgated into law in December1993. The country's first nonracial elections were held on April 26-29, 1994, resulting inthe installation of Nelson Mandela as President on May 10, 1994.

Following the 1994 elections, South Africa was governed under an Interim Constitution.This constitution required the Constituent Assembly (CA) to draft and approve a permanentconstitution by May 9, 1996. After review by the Constitutional Court and intensivenegotiations within the CA, a revised draft was certified by the Constitutional Court onDecember 2, 1996. President Mandela signed the new Constitution into law on December 10,and it entered into force on February 3, 1997.

The Government of National Unity (GNU) established under the Interim Constitutionremains in effect until the next national elections in 1999. The parties originallycomprising the GNU--the ANC, the NP, and the Inkatha Freedom Party (IFP)--shared executivepower. On June 30, 1996, the NP withdrew from the GNU to become part of the opposition.

The Parliament consists of two houses--the National Assembly and the National Councilof Provinces--which are responsible for drafting the laws of the republic. The NationalAssembly also has specific control over bills relating to monetary matters. The current400-member National Assembly was retained under the new Constitution, although theConstitution allows for a range of between 350 and 400 members. The Assembly is elected bya system of "list proportional representation." Each of the parties appearing onthe ballot submits a rank-ordered list of candidates. The voters then cast their ballotsfor one party. Seats in the Assembly are allocated based on the percentage of votes eachparty receives. In the 1994 elections, the ANC won 252 seats in the Assembly, the NP 82,the IFP 43, the Vyheidsfront/Freedom Front (FF) 9, the Democratic Party (DP) 7, thePan-African Congress (PAC) 5, and the African Christian Democratic Party (ACDP) 2.

The National Council of Provinces (NCOP) consists of 90 members, 10 from each of thenine provinces. The NCOP replaced the former Senate as the second chamber of Parliamentand was created to give a greater voice to provincial interests. It must approvelegislation that involves shared national and provincial competencies as defined by anannex to the Constitution. Each provincial delegation consists of six permanent and fourrotating delegates.

The president is the executive head of state. Following the April 1994 elections, theNational Assembly elected Nelson Mandela president. In addition, both the largest andsecond largest parties--the ANC and NP--chose one executive deputy president each. Withthe withdrawal of the NP from the GNU, the ANC's Thabo Mbeki is currently the soleexecutive deputy president. The president's responsibilities include assigning cabinetportfolios, signing bills into law, and serving as commander in chief of the military. Thepresident must work closely with the executive deputy president and the cabinet. There are27 posts in the cabinet, 24 of which are currently held by the ANC and 3 by the IFP.

The third arm of the central government is an independent judiciary. The ConstitutionalCourt is the highest court for interpreting and deciding constitutional issues, while theSupreme Court of Appeal is the highest court for non-constitutional matters. Most casesare heard in the extensive system of High Courts and Magistrates Courts. TheConstitution's Bill of Rights provides for due process, including the right to a fair,public trial within a reasonable time of being charged and the right to appeal to a highercourt. The Bill of Rights also guarantees fundamental political and social rights of SouthAfrica's citizens.

The new Government of South Africa has made remarkable progress in consolidating thenation's peaceful transition to democracy. Programs to improve the delivery of essentialsocial services to the majority of the population are underway. Access to betteropportunities in education and business is becoming more widespread. Nevertheless,transforming South Africa's society to remove the legacy of apartheid will be a long-termprocess requiring the sustained commitment of the leaders and people of the nation'sdisparate groups.

The Truth and Reconciliation Commission (TRC), chaired by 1984 Nobel Peace Prize winnerArchbishop Desmond Tutu, has helped to advance the reconciliation process. Constituted in1996 and due to finish its work in 1998, the TRC is empowered to investigate apartheid-erahuman rights abuses committed between 1960 and May 10, 1994, to grant amnesty to those whocommitted politically motivated crimes and to recommend compensation to victims of abuses.The TRC's mandate is part of the larger process of reconciling the often conflictingpolitical, economic, and cultural interests held by the many peoples that make up SouthAfrica's diverse population. The ability of the government and people to agree on manybasic questions of how to order the country's new society will be a critical challengestretching into the 21st century.

One important issue continues to be the relationship of provincial and localadministrative structures to the national government. Prior to April 27, 1994, SouthAfrica was divided into four provinces and 10 black "homelands," four of whichwere considered independent by the South African Government. Both the Interim Constitutionand the new 1997 Constitution abolished this system and substituted nine provinces. Eachprovince has an elected legislature and chief executive--the provincial premier. Althoughin form a federal system, in practice the nature of the relationship between the centraland provincial governments has yet to be determined and is the subject of considerabledebate, particularly among groups desiring a greater measure of autonomy from the centralgovernment. A key step in defining the relationship came in 1997, when provincialgovernments were given more than half of central government funding and permitted todevelop and manage their own budgets.

Although South Africa's economy is in many areas highly developed, the exclusionarynature of apartheid and distortions caused in part by the country's internationalisolation until the 1990s have left major weaknesses. The economy is now in a process oftransition as the government seeks to address the inequities of apartheid, stimulategrowth, and create jobs. Business, meanwhile, is becoming more integrated into theinternational system, and foreign investment has increased dramatically over the pastseveral years. Still, the economic disparities between population groups are expected topersist for many years, remaining an area of priority attention for the government.

The new Constitution's Bill of Rights provides extensive guarantees, including thefollowing: equality before the law and prohibitions against discrimination; the right tolife, privacy, property, and freedom and security of the person; prohibition againstslavery and forced labor; and freedom of speech, religion, assembly, and association. Thelegal rights of criminal suspects also are enumerated, as are citizens' entitlements to asafe environment, housing, education, and health care. The Constitution provides for anindependent and impartial judiciary, and, in practice, these provisions are respected.

Since the abolition of apartheid, levels of political violence in South Africa havedropped dramatically. In some areas, such as parts of KwaZulu-Natal Province, tensionsremain extremely high. Political and extrajudicial killings continue to occur. Violentcrime and organized criminal activity is at high levels and is a grave concern. Partly asa result, vigilante action and mob justice sometime occur.

Some members of the police commit abuses, and deaths in police custody and as a resultof excessive force remain serious problems. The government has taken action to investigateand punish some of those who commit such abuses. In April 1997, the government establishedan Independent Complaints Directorate to investigate deaths in police custody and deathsresulting from police action.

Although South Africa's society is undergoing a rapid transformation, discriminationagainst women and the disabled continues, and violence against women and children is aserious problem.

State President--Nelson Mandela (ANC)

Executive Deputy President--Thabo Mbeki (ANC)

Foreign Affairs--Alfred Nzo (ANC)

Justice--Dullah Omar (ANC)

Defense--Joe Modise (ANC)

Finance--Trevor Manuel (ANC)

Home Affairs--Mangosuthu Buthelezi (IFP)

Safety and Security--Sydney Mufamadi (ANC)

Trade and Industry--Alec Erwin (ANC)

Agriculture and Land Affairs--Derek Hanekom (ANC)

Health--Nkosazana Zuma (ANC)

Welfare and Population Development--Geraldine Fraser-Moleketi (ANC)

Education--Sibusiso Bengu (ANC)

Labor--Tito Mboweni (ANC)

Art, Culture, Science and Technology--Lionel Mtshali (IFP)

Water Affairs and Forestry--Kader Asmal (ANC)

Environment Affairs and Tourism--Pallo Jordan (ANC)

Mineral and Energy Affairs--Penuell Maduna (ANC)

Transport--Mac Maharaj (ANC)

Provincial Affairs and Constitutional Development--Mohammed Valli Moosa (ANC)

Housing--Sankie Mthembi-Mahanyele (ANC)

Posts, Telecommunications, and Broadcasting--Jay Naidoo (ANC)

Public Works--Jeff Radebe (ANC)

Public Enterprises--Stella Sigcau (ANC)

Public Service and Administration--Zola Skweyiya (ANC)

Sport and Recreation--Steve Tshwete (ANC)

Correctional Services--Sipo Mzimela (IFP)

The Republic of South Africa maintains an embassy in the United States at 3051Massachusetts Avenue NW, Washington, DC 20008; tel. (202) 232-4400.

ECONOMY

South Africa has a productive and industrialized economy that paradoxically exhibitsmany characteristics associated with developing countries, including a division of laborbetween formal and informal sectors--and uneven distribution of wealth and income. Theformal sector, based on mining, manufacturing, services, and agriculture, is welldeveloped.

The transition to a democratic, nonracial government, begun in early 1990, stimulated adebate on the direction of economic policies to achieve sustained economic growth while atthe same time redressing the socioeconomic disparities created by apartheid. TheGovernment of National Unity's initial blueprint to address this problem was theReconstruction and Development Program (RDP). The RDP was designed to create programs toimprove the standard of living for the majority of the population by providing housing--aplanned 1 million new homes in 5 years--basic services, education, and health care. Whilea specific "ministry" for the RDP no longer exists, a number of governmentministries and offices are charged with supporting RDP programs and goals.

In June 1996, the government announced a new market-driven economic plan--"Growth,Employment and Redistribution: A Macroeconomic Strategy" (GEAR). The GEAR emphasizesa private sector/market-based approach; parastatal privatization; and conservative fiscaland monetary policies to facilitate economic growth, job creation, and accelerated tradeliberalization. South Africa aims to maintain an attractive business environment andencourages both foreign and domestic investment.

South Africa has a sophisticated financial structure with a large and active stockexchange that ranks 19th in the world in terms of total market capitalization. The SouthAfrican Reserve Bank (SARB) performs all central banking functions. The SARB isindependent and now operates in much the same way as Western central banks, influencinginterest rates and controlling liquidity through its interest rates on funds provided toprivate sector banks. Quantitative credit controls and administrative control of depositand lending rates have largely disappeared.

The South African Government has taken steps to gradually reduce remaining foreignexchange controls, which apply mainly to South African residents. Private citizens are nowallowed a one-time investment of up to 200,000 rand in offshore accounts and are free tohold foreign currency accounts in South African banks. In January 1998, the FinanceMinistry removed the ceiling on foreign exchange holdings for commercial banks.

South Africa has rich mineral resources. It is the world's largest producer andexporter of gold and also exports a significant amount of coal. The value-added processingof minerals to produce ferroalloys, stainless steels, and similar products is a majorindustry and an important growth area. The country's diverse manufacturing industry is aworld leader in several specialized sectors, including railway rolling stock, syntheticfuels, and mining equipment and machinery.

Agriculture accounts for about 5% of the gross domestic product. Major crops includecitrus and deciduous fruits, corn, wheat, dairy products, sugarcane, tobacco, wine, andwool. South Africa has many developed irrigation schemes and generally is a net exporterof food.

South Africa's transportation infrastructure is well developed, supporting bothdomestic and regional needs. The Johannesburg International Airport serves as a hub forflights to other Southern African countries. The domestic telecommunicationsinfrastructure provides modern and efficient service to urban areas, including widespreadaccess to cellular and internet services. In 1997, Telkom, the South Africantelecommunications parastatal, was partly privatized and entered into a strategic equitypartnership with a consortium of two companies, including a U.S. telecommunicationscompany. The South African Government pledged to reinvest $1 billion of the purchase priceinto to Telkom to facilitate network modernization and expansion into unserved areas.

South Africa's GDP is expected to increase gradually during the next few years. AnnualGDP growth since 1994 has fluctuated between an estimate of 1.5% and 3.4%. The governmentestimates that the economy must achieve growth at a minimum of 6% to offset unemployment,which is officially stated to be about 30%. In an effort to boost economic growth and spurjob creation, the government has launched special investment corridors to promotedevelopment in specific regions, and also is working to encourage small, medium, andmicroenterprise development. One of the great successes of the ANC government has been toget CPI inflation,

which had been running in the double digits for over 20 years, under control. ByDecember 1997, inflation had fallen to 6.1%. The government also has made inroads intoreducing the fiscal deficit and increasing foreign currency reserves. Several factorscould impact on this positive direction, including repercussions from financial crises inother areas of the world, low prices for minerals and metals, particularly gold, andcontinued lack of fiscal accountability by South Africa's provincial governments.

Exports and imports account for 44% of the GDP. South Africa's major trading partnersinclude the United Kingdom, the United States, Germany, and Japan. South Africa's tradewith other Sub-Saharan African countries, particularly those in the Southern Africaregion, has increased substantially. South Africa is a member of the Southern AfricanCustoms Union (SACU) and the Southern African Development Community (SADC). In August1996, South Africa signed a regional trade protocol agreement with its SADC partners.While the agreement has yet to be ratified, negotiations continue to finalize tariffbindings and move the region toward economic integration.

South Africa has made great progress in dismantling its old economic system, which wasbased on import substitution, high tariffs and subsidies, anti-competitive behavior, andextensive government intervention in the economy. The new leadership has moved to reducethe government's role in the economy and to promote private sector investment andcompetition. It has significantly reduced tariffs and export subsidies, loosened exchangecontrols, cut in half the secondary tax on corporate dividends, and improved enforcementof intellectual property laws. It is in the process of drafting a new competition law. AU.S.-South Africa bilateral tax treaty went into effect on January 1, 1998.

South Africa is a contracting party to the Generalized Agreement on Tariffs and Tradeand is a member of the World Trade Organization (WTO). U.S. products qualify for SouthAfrica's most- favored-nation tariff rates. Many South African shipments to the UnitedStates receive U.S. Generalized System of Preferences treatment. South Africa stillmaintains a list of restricted goods requiring import permits. Nevertheless, thegovernment remains committed to the simplification and continued reduction of tariffswithin the WTO framework and maintains active discussions with that body and its majortrading partners.

As a result of a November 1993 bilateral agreement, the Overseas Private InvestmentCorporation (OPIC) can now assist U.S. investors in the South African market with servicessuch as political risk insurance and loans and loan guarantees. In July 1996, the UnitedStates and South Africa signed an investment fund protocol for a $120 million OPIC fundthat will make equity investments in South and Southern Africa. The Trade and DevelopmentAgency also has been actively involved in funding feasibility studies and identifyinginvestment opportunities in South Africa for U.S. businesses.

South Africa's Government is deeply concerned about managing the country's rich andvaried natural resources in a responsible and sustainable manner. It 1997, it ratified theUnited Nations Framework Convention on Climate Change. Numerous South Africannon-governmental organizations are engaged in the public policy debate on climate change,habitat conservation, and sustainable development.

The United States has maintained an official presence in South Africa since 1799, whenan American consulate was opened in Cape Town. The U.S. Embassy is located in Pretoria,and consulates general are in Johannesburg, Durban, and Cape Town. Americans and SouthAfricans also have many non-governmental ties; for example, black and white Americanmissionaries have a long history of activity in South Africa.

From the 1970s through the early 1990s, U.S.-South Africa relations were severelyaffected by South Africa's racial policies. However, since the abolition of apartheid anddemocratic elections of April 1994, the United States has enjoyed an excellent bilateralrelationship with South Africa. During President Nelson Mandela's October 1994 state visitto the United States, the U.S.-South Africa Binational Commission was created. TheCommission, which meets biannually, is designed to promote cooperation between the twocountries in such areas as trade and investment, agriculture, human resources developmentand education, conservation and the environment, energy and technology, and defense.Through the U.S. Agency for International Development (USAID), the United States alsoprovides assistance to South Africa to help it meet its development goals. Peace Corpsvolunteers began working in South Africa in 1997.

Ambassador--James A. Joseph

Deputy Chief of Mission and Minister-Counselor--Robert M. Pringle

Commercial Minister-Counselor--Millard W. Arnold, Jr.

Economic Minister-Counselor--Ann R. Berry

Political Counselor--Reed Fendrick

Administrative Counselor--Michael J. Hinton

Public Affairs Officer--Thomas Hull

Defense Attache--Col. Keith Betsch, USA

USAID Director--Aaron Williams

Agricultural Attache--Dr. Besa L. Kotati

Consul General Cape Town--April Glaspie

Consul General Durban--Frederick C. Hassani

Consul General Johannesburg--Gregory W. Engle

For more information, visit the State Department's home page.