Advantages Of Macroeconomics In South Africa

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1. Introduction
Africa is the second largest continent and to its advantage has an abundance of natural resources richer than any other continent (Africa: Why the Richest Continent Is Also the Poorest, 2008). Despite Africa’s great platform for a thriving economy, in 2001 The Economist declared Africa as a hopeless continent troubled by harsh poverty and underdevelopment (Africa: Open for Business, 2012). Regardless of the doubt felt over Africa, the continent has unexpectedly survived contractions in the global economy. Since the last commodity boom in 2001, Africa has managed to generate a higher economic growth rate than the global economy and its economy is predicted to increase to 5%-6% in 2015 (Macroeconomic Prospects, 2015). These promising statistics as well as Africa’s resiliency have made it a continent of interest to many companies, businesses and venture capitalist. South African businesses have been enticed to expand from their saturated markets to new African territories, so as to be the first to take
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Unfortunately of these few roads available, most of them are either inaccessible or of poor standard, if not both. The same problem persists with the continent’s railroads: which can be the cheapest mode of transport over long distances if built properly (Coyle, Langley, Novack, & Gibson, 2013:97). As a result of this businesses face an increase in the cost of transporting their merchandise (Ondiege et al., 2013). Even more so, poor roads decrease the geographical size of the market because now some individuals do not have proper access to the relevant stores (Ondiege et al., 2013). This infrastructure deficit creates a similar decreasing effect on the geographical size of labour, as it proves to be very difficult to hire people that are geographically inaccessible due to the lack of safe and usable roads (Ondiege et al.,
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