GAUTENG DEPARTMENT OF EDUCATION

GEOGRAPHY
LEARNER SSIP 2021
TERM 3
ECONOMIC GEOGRAPHY
SESSION 1 – 3
SATURDAY SSIP LESSONS

LEARNER NOTES & ACTIVITIES

 SESSION 1
ECONOMIC GEOGRAPHY

ECONOMIC GEOGRAPHY CONCEPTS

Agriculture Agriculture refers to the farming of crops, vegetables, and

fruit; or farming with animals or birds, e.g. ostrich farming
Small scale Small scale farming is the growing of crops and livestock on
farming a small piece of land without the use of advanced or
expensive technologies.
Large scale Large scale farming is the growing of crops and livestock on
farming a large piece of land with the use of advanced or/and
expensive technologies.
Commercial Where machinery, irrigation, seeds, fertilizers, and pesticides
farming are used to maximize production, sales, and profit.
Subsistence The farmer farms for his own needs, not for profit and he is
farming producing little surplus.
Balance of trade This is the difference between a country’s imports and
exports.
Gross domestic The sum total of all the income earned in one year within a
product (GDP) country, or the value of the products made within a country in
one year; or the expenditure on purchases made in one
year.
Gross national The total value of goods and services produced by the
Product (GNP) permanent citizens of a country in one year (note that
permanent citizens may work out of the country).
Agro industries These are industries related to agriculture e.g. irrigation
needs, pesticides, feed for animals, medicine for animals.
Food sufficient By developing farming techniques, a country can increase
production and become food sufficient
Dual agricultural Whereby both subsistence farming and commercial farming
economy takes place in a country like South Africa.
Extensive farming Where farming takes place on a huge piece of land, for
example Karoo sheep farms or cattle farms
Intensive farming Intensive farming can take place on huge pieces of land or
small-scale farming, it is the input that is made in terms of
irrigation, scientific farming methods, fertilizers, genetic
modification etc. that makes it intensive.
Trade tariffs Are tariffs that are put in place to protect another country’s
local farmers against cheaper import prices?
Balance of A country’s financial statement showing its transactions with
payment the rest of the world

Balance of trade The value of exports minus the value of imports

Bridge industries Industries that are located between the source of raw
materials and the customer, e.g. oil refineries
Centralisation Movement of industries into core areas
Decentralisation Movement of activities away from over-centralized areas
Economic activities Activities that people practice meeting their needs or earn a
living
Exports Goods and services that are sold to foreign countries
Favourable trade Occurs when the value of exports is greater than the
balance value of imports
Food insecurity When not all the people have enough food to meet them
needs for a healthy and productive life
Food security When all the people have enough food to meet their needs
for a healthy and productive life
Footloose Industries that can be located in any place without being
industries affected by factors such as resources or transport, e.g.
diamond processing and computer chip manufacturing

Foreign exchange The money paid to South Africa by other countries, e.g.
dollars and pounds, in exchange for goods and services
Formal sector Registered businesses that are licensed to sell goods or
provide services
Imports Goods and services that are bought from foreign countries
Industrial Industrial estates or areas aimed at economic growth and
Development Zone new investment; used by developing countries to attract
(IDZ) investment, create jobs and boost exports
Informal sector Activities by small, unregistered businesses that sell goods
or provide services without being licensed, e.g. petty trade,
casual employment, spaza shops and street hawkers or
traders
Infrastructure Transport networks (roads, railways) and services
(electricity, telecommunication, water, and sewerage) that
are in place.
Primary sector Where extraction of raw materials from nature takes place,
for example, mining, agriculture, fishing, and forestry
Quaternary sector Activities that deal with information and research.
Secondary sector The processing/manufacturing of raw materials into usable
goods
Semi-skilled worker A worker who does routine tasks (simple tasks that are done
on a regular basis; someone who is not skilled or trained to
do specialist work (difficult tasks that need special training)
Skilled worker A worker who has a specific set of skills of specialized
knowledge that has usually been obtained through some
kind of formal training
Spatial Programme aimed at improving infrastructure and attracting
Development business investments in rural areas that were neglected and
Initiatives (SDI) underdeveloped
Tertiary activities Activities that deal with the supply of services e.g. banking,
trade, and transport

Trade The flow of goods and services from producers to

consumers across the world
Trading bloc A group of countries that have common markets or trade
agreements
Unskilled worker A worker who performs simple duties that do not require any
specific skills, training, or previous experience; usually
involves hard physical labour
 ECONOMIC GEOGRAPHY – STRUCTURE OF THE ECONOMY

TOPICS AS PER ATP (WEEK 22)

Economic sectors- primary, secondary, tertiary
Contribution to the South African economy: value and employment; and use of
statistical and graphical information.

STRUCTURE OF THE ECONOMY MIND MAP

 1. STRUCTURE OF THE ECONOMY QUESTIONS

ACTIVITY 1.1
1.1 Complete the following activity based on the structure of the economy.
1.1.1 The extraction of raw materials is a (primary/secondary) economic (1 x 1) (1)
activity.
1.1.2 The South African economy provides services and human skills as a (1 x 1) (1)
commodity within the (secondary/tertiary) sector.
1.1.3 The processing of raw materials is found in the (secondary/tertiary) (1 x 1) (1)
sector.
1.1.4 The (tertiary/quaternary) sector of the South African economy is (1 x 1) (1)
mainly involved in high-tech research activities.
1.1.5 (Trade quotas/Trade tariffs) are regulations that protect local farmers (1 x 1) (1)
against cheaper import prices.
1.1.6 (Large-scale/Small-scale) farming is predominantly commercial in (1 x 1) (1)
nature in South Africa.
1.1.7 (Maize/Wheat) is the biggest large-scale crop grown in South Africa. (1 x 1) (1)
1.1.8 South Africa has the world's largest resources of (gold/manganese). (1 x 1) (1)
[8]

ACTIVITY 1.2

1.2. Refer to Figure 1.2 showing economic sector contributions to the GDP.

1.2.1 Give two examples of secondary activities in the diagram. (2x1) (2)
1.2.2 Calculate the total contribution of the tertiary sector to the economy. (1x2) (2)
1.2.3 Which activity contribute the least to the GDP? (1x1) (1)
1.2.4 Which sector must have the highest contribution to indicate growth in (1x1) (1)
the county?
1.2.5 Name the highest contributing activity to the GDP in the primary (1x1) (1)
sector.
1.2.6 Define the term quaternary sector. (1x2) (2)
1.2.7 Explain how agriculture can help with the growth of the economy. (2x2) (4)
[13]

ACTIVITY 1.3

1.3 Refer to Figure 1.3 showing the economic activity in Gauteng.

1.3.1 Define the term tertiary economic activities. (1x1) (1)

1.3.2 Which tertiary activity in Gauteng contributes the most to South (1x1) (1)
Africa's economy?
1.3.3 Give a reason for the economic activity that contributes the highest (1x2) (2)
percentage to the tertiary sector.
1.3.4 Comment on the contribution of the tertiary sector of Gauteng to the (1x2) (2)
economy of South Africa, based on the information in the figure.
1.3.5 Why is it preferable for a country to have a stronger tertiary sector (2x2) (4)
than a primary sector?
1.3.6 Explain the role that transport plays in strengthening the tertiary (2x2) (4)
sector in Gauteng.
[14]

ACTIVITY 1.4

1.4 Refer to Figure 1.4 showing an overview of economic activities.

1.4.1 Define the term gross domestic product. (1x2) (2)

1.4.2 What percentage does the primary sector contribute to the GDP? (1x2) (2)
1.4.3 Which economic sector contributes the biggest percentage to the (1x2) (2)
GDP?
1.4.4 Describe TWO factors that have promoted manufacturing in South (2x2) (4)
Africa.
1.4.5 Suggest TWO ways in which manufacturing contributes to the (2x2) (4)
economy of South Africa.
[14]
 ECONOMIC GEOGRAPHY – AGRICULTURE

TOPICS AS PER ATP (WEEK 23)

Contribution of agriculture to the South African economy. The role of small-scale
farmers and large-scale farmers. Main products produced: home market and
export market.
Factors that favour and hinder agriculture in South Africa, such as climate, soil,
land ownership and trade.
The importance of food security in South Africa – influencing factors; and case
studies related to food security in South Africa.

STRUCTURE OF THE ECONOMY MIND MAP

 1. AGRICULTURE QUESTIONS

ACTIVITY 1.1
1.1 Refer to Figure 1.1 on agriculture in South Africa.

1.1.1 To which economic sector does agriculture belong? (1 x 2) (2)

1.1.2 Why does agriculture contribute so little to the GDP? (1 x 2) (2)
1.1.3 State TWO physical factors that influence the contribution of (2 x 2) (4)
agriculture to the GDP.
1.1.4 How does exporting agricultural products contribute to the economy? (1 x 2) (2)
(1 x 2) (2)
1.1.5 The labour force on farms is generally unstable and affects production (2 x 2) (4)
negatively. Give TWO reasons for this instability.
[14]
ACTIVITY 1.2

1.2. Refer to Figure 1.2 showing farming activities.

1.2.1 Define the term small-scale farming. (1x1) (1)

1.2.2 Why can one say that these small-scale farmers are farming the land (1x1) (1)
intensively?
1.2.3 What evidence in the photograph suggests that these are small-scale (2x1) (2)
farmers?
1.2.4 The profit margin of the farmers in the photograph will be low. Explain (2x2) (4)
this statement.
1.2.5 In a paragraph of approximately EIGHT lines, outline the problems (4x2) (8)
experienced by small-scale farmers, as seen in the photograph.
[16]
ACTIVITY 1.3

1.3 Refer to Figure 1.3 showing imports and exports of agricultural

products.

1.3.1 Indicate whether South Africa imported or exported more of its (1x1) (1)
agricultural products in 2008/2009.
1.3.2 Indicate the general trend of imports/exports from 2009/2010 to (1x1) (1)
2012/2013.
1.3.3 Which agricultural product earned the greatest income for South (1x1) (1)
Africa in 2012/2013?
1.3.4 South Africa could earn more money by exporting the agricultural (1x2) (2)
product in QUESTION 3 in a processed form. Explain why this is the
case.
1.3.5 Explain TWO factors related to trade that have encouraged people to (2x2) (4)
buy South African agricultural products.
1.3.6 Discuss the importance of agriculture to the South African economy. (3x2) (6)
[15]
ACTIVITY 1.4

1.4 Refer to Figure 1.4, an extract on food security.

1.4.1 Explain the term food security. (1x1) (1)

1.4.2 Africa has a very high percentage of subsistence farmers. Assess (2x2) (4)
how this will impact on food production.
1.4.3 Explain TWO environmental factors that led to food insecurity in (2x2) (4)
southern Africa.
1.4.4 Genetically modified crops are seen by many as solutions to food (3x2) (6)
insecurity. Substantiate your viewpoint on this debate.
1.4.5 Why is it important to improve food security in a country? (1x2) (2)
1.4.6 Why are people living in urban settlements more likely to have higher (1x2) (2)
levels of food security than those living in rural areas?
1.4.7 In a paragraph of approximately EIGHT lines, analyse the impact of (4x2) (8)
the current drought crisis on South Africa's food security.
[27]
ACTIVITY 1.5

1.5 Refer to Figure 1.5 on global food security index.

1.5.1 Describe the change in South Africa's food security index score from (1x1) (1)
2012 to 2016.
1.5.2 State the change in South Africa's world ranking in terms of the food (1x1) (1)
security index from 2012 to 2016.

1.5.3 When is a country considered to be food secure? (1x2) (2)

1.5.4 Explain the positive impact of having food security in South Africa. (2x2) (4)
1.5.5 Write a paragraph of approximately EIGHT lines in which you analyse (4x2) (8)
the reasons for South Africa's low food security index.
[16]
ACTIVITY 1.6

1.6 Refer to Figure 1.6 an extract on South Africa’s beef industry.

1.6.1 Which country had the highest exportation of beef in 2016? (1x1) (1)
1.6.2 Quote evidence from the extract that suggests that the beef industry is (1x1) (1)
growing in South Africa.
1.6.3 Refer to the statement below.
By exporting higher quality beef, our industry can protect itself from
shocks that result in reduced profits.
(a) Why does the exportation of low quality beef reduce profits? (1x1) (1)
(b) Suggest how farmers can produce higher quality beef. (2x2) (4)
1.6.4 Write a paragraph of approximately EIGHT lines explaining the (4x2) (8)
factors preventing South Africa from being competitive with other top
beef exporters.
[15]
 ECONOMIC GEOGRAPHY – MINING

TOPICS AS PER ATP

Contribution of mining to the South African economy
Significance of mining to the development of South Africa
Factors that favour and hinder mining in South Africa; and a case study of one of
South Africa’s main minerals in relation to the above points

MINING MIND MAP

 1. MINING QUESTIONS

ACTIVITY 1.1
1.1 Refer to Figure 1.1 on mining in South Africa.

1.1.1 Why is mining considered to be a primary activity? (1 x 1) (1)

1.1.2 Which mineral contributes the most to South Africa's GDP? (1 x 1) (1)
1.1.3 Discuss TWO physical factors that promote mining in South Africa. (2 x 2) (4)
1.1.4 Suggest ONE way in which South Africa can address labour issues, in (1 x 2) (2)
order to improve its world ranking.
1.1.5 In a paragraph of approximately EIGHT lines, explain the economic (4 x 2) (8)
importance of mining for infrastructure and industrial development in
South Africa.
[14]
ACTIVITY 1.2

1.2. Refer to Figure 1.2, an extract on mining in South Africa.

1.2.1 Quote from the article why South Africa's mining industry is 'in (1x1) (1)
trouble'.
1.2.2 What percentage of the gross domestic product does mining (1x1) (1)
contribute towards the South African economy?
1.2.3 Which sectors of the economy, according to the article, does the (1x2) (2)
government think should be developed, to grow South Africa's
economy?
1.2.4 Briefly explain why the 'recent downturn in the metal industry and (2x2) (4)
subdued demand from China' has had a negative effect on South
Africa's mining sector.
1.2.5 In a paragraph of approximately EIGHT lines, discuss factors that (4x2) (8)
have contributed to the instability of the mining sector in South Africa.
[16]
ACTIVITY 1.3

1.3 Refer to Figure 1.3, an extract on mining in South Africa.

1.3.1 Give TWO reasons in the extract for the decrease in the contribution (2x1) (2)
of mining to the GDP.
1.3.2 State ONE physical factor that could endanger a miner's life below (1x2) (2)
surface.
1.3.3 Discuss TWO possible reasons for the increasing input costs of (2x2) (4)
labour.
1.3.4 Write a paragraph of approximately EIGHT lines and discuss the (4x2) (8)
direct and indirect contribution of mining to the GDP of South Africa.
[14]
ACTIVITY 1.4

1.4 Refer to Figure 1.4, an extract on coal mining.

1.4.1 Name the province in which most of South Africa's coalfields are (1x1) (1)
found.
1.4.2 Name TWO of South Africa's major industries that are dependent (2x1) (2)
on coal as a raw material.
1.4.3 State TWO environmental problems resulting from coal mining in (2x2) (4)
South Africa.
1.4.4 Mining and coal-dependent companies should work together to rectify (4x2) (8)
environmental injustices associated with coal mining. In a paragraph
of about EIGHT lines, explain how this can be achieved.
[15]
 SESSION 2
ECONOMIC GEOGRAPHY – SECONDARY AND TERTIARY ACTIVITIES &
SOUTH AFRICAN INDUSTRIAL REGIONS

TOPICS AS PER ATP

Contribution of secondary and tertiary sectors to the South African economy; types
of industries, such as heavy, light, raw material orientated, market orientated,
footloose industries, ubiquitous industries and bridge (break of bulk point)
industries; factors influencing industrial development in South Africa, such as raw
materials, labour supply, transport infrastructure, political intervention, competition
and trade

TOPICS AS PER ATP

South Africa’s industrial regions:

• Gauteng (PWV), Durban-Pinetown, Port Elizabeth-Uitenhage, South-
western Cape
• factors influencing their location
• main industrial activities.
(Case studies from South Africa to illustrate the above)

GAUTENG (PWV) / SOUTHWESTERN CAPE TO BE EXAMINED IN 2021

SECONDARY ACTIVITES MIND MAP
TERTIARY ACTIVITES MIND MAP
 SOUTH AFRICAN INDUSTRIAL REGIONS MIND MAP
GAUTENG (PWV) / SOUTHWESTERN CAPE TO BE EXAMINED IN 2021
LOCATION OF CORE INDUSTRIAL REGIONS
1. SECONDARY AND TERTIARY ACTIVITIES & SOUTH AFRICAN INDUSTRIAL
REGIONS QUESTIONS

ACTIVITY 1.1
1.1 Complete the following activity by choosing the correct word/phrase to
make the statement true.
1.1.1 Industries that produce perishable goods are mainly (market/ raw (1 x 1) (1)
material) orientated.
1.1.2 Food processing industries, like bakeries, are generally (heavy/light) (1 x 1) (1)
industries.
1.1.3 Industries that are located between the source of the raw materials (1 x 1) (1)
and the customer are called (bridge/footloose) industries.
1.1.4 (Ubiquitous/Bridge) industries can locate in any geographic area. (1 x 1) (1)
1.1.5 (Heavy/Light) industry works with large quantities of raw materials and (1 x 1) (1)
large-scale machinery
1.1.6 An industry that is located close to where its customers live is known (1 x 1) (1)
as a (raw material/market) industry.
1.1.7 A (footloose/ubiquitous) industry can be located near either the (1 x 1) (1)
market or the source of the raw material.
1.1.8 (Heavy/Light) industries are usually located close to the rural-urban (1 x 1) (1)
fringe.
[8]

ACTIVITY 1.2

1.2 Complete the following activity.

1.2.1 Name South Africa’s four core industrial regions. (1x4) (4)
1.2.2 Identify the largest industrial area. (1x1) (1)
1.2.3 List the type of industries that can be found in the Durban-Pinetown (2x1) (2)
region.
1.2.4 Briefly discuss any TWO factors that promote industrial development (2x2) (4)
in South Africa.
1.2.5 Explain how labour forces and transport can hinder industrial (2x2) (4)
development in South Africa.
1.2.6 Why is industrial growth important for South Africa’s economy? (2x2) (4)
1.2.7 Give ONE reason why three out of the four core industrial regions are (1x2) (2)
located along the coastline of South Africa.
[21]
ACTIVITY 1.3

1.3 Refer to Figure 1.3 showing industrial regions in South Africa.

1.3.1 Name industrial area A. (1x1) (1)

1.3.2 State ONE physical factor that industrial areas A and B have in (1x1) (1)
common.
1.3.3 Name industrial area B. (1x1) (1)
1.3.4 Name the main agricultural product (crop) farmed in area B. (1x1) (1)
1.3.5 Is industrial area A or B known for the processing of fruit? (1x1) (1)
1.3.6 Will industrial area A or B be closer to the Asian markets? (1x1) (1)
1.3.7 Does area A or B experience rainfall mainly in winter? (1x1) (1)
1.3.8 Is area A or B the second largest industrial area in South Africa? (1x1) (1)
[8]
ACTIVITY 1.4

1.4 Refer to Figure 1.4, an extract on South Africa’s economy.

1.4.1 Quote evidence from the article to support the statement that the (1x1) (1)
PWV/Gauteng Industrial Region is a core industrial region
1.4.2 Discuss ONE factor that has contributed to the PWV/Gauteng (1x2) (2)
Industrial Region being a preferred destination for international
investors.
1.4.3 Gauteng's manufacturing sector is a major market for copper.
(a) Why is the Phalaborwa SDI the main supplier of copper to (1x2) (2)
Gauteng?
(b) How will the Phalaborwa SDI benefit from strengthening its trading (1x2) (2)
links with Gauteng?
1.4.4 Write a paragraph of approximately EIGHT lines explaining how (4x2) (8)
energy provision and labour will become major challenges that the
PWV/Gauteng Industrial Region will experience in the processing of
copper in the next three years.
[15]
ECONOMIC GEOGRAPHY – STRATEGIES FOR INDUSTRIAL DEVELOPMENT

TOPICS AS PER ATP

Contribution of mining to the South African economy
Significance of mining to the development of South Africa
Factors that favour and hinder mining in South Africa; and a case study of one of
South Africa’s main minerals in relation to the above points

STRATEGIES FOR INDUSTRIAL DEVELOPMENT MIND MAP

 1. STRATEGIES FOR INDUSTRIAL DEVELOPMENT QUESTIONS

ACTIVITY 1.1
1.1 Refer to Figure 1.1 on the Saldanha Bay SDI.

1.1.1 In which South African province is Saldanha Bay situated? (1 x 1) (1)

1.1.2 Why are IDZs located away from major metropolitan areas? (1 x 2) (2)
1.1.3 Give TWO reasons why the Saldanha Bay IDZ has the potential for (2 x 2) (4)
economic growth.
1.1.4 As an industrialist, identify any TWO incentives which would attract (1 x 2) (2)
you to locate your industry within an IDZ.
1.1.5 State TWO advantages that this area will enjoy with the development (2 x 2) (4)
of the wind energy projects.
[13]
ACTIVITY 1.2

1.2. Refer to Figure 1.2 on Spatial Development Initiatives (SDIs).

1.2.1 What is a spatial development initiative (SDI)? (1x1) (1)

1.2.2 Discuss the importance of SDIs for economic development in South (2x2) (4)
Africa.
1.2.3 Give ONE reason why the infrastructure around the newly developed (1x2) (2)
SDIs needed to be upgraded.
1.2.4 With reference to the Richard’s Bay SDI that you have studied, (4x2) (8)
explain in a paragraph of approximately EIGHT lines how improved
infrastructure supported tourism and how it has led to the upliftment of
the local community.
[15]
 SESSION 3

ECONOMIC GEOGRAPHY – INFORMAL SECTOR

TOPICS AS PER ATP (WEEK 28)

Concept and characteristics of informal sector employment

Reasons for high informal sector employment in South Africa
Challenges facing South Africa’s informal sector
Case studies to illustrate the above in the South African context

INFORMAL SECTOR MIND MAP

 1. INFORMAL SECTOR QUESTIONS

ACTIVITY 1.1
1.1 Refer to Figure 1.1 on informal trade in South Africa.

1.1.1 Define the term informal trading. (1 x 1) (1)

1.1.2 What is the total worth of the South African food market? (1 x 1) (1)
1.1.3 What percentage of the figure stated in QUESTION 1.1.2 is (1 x 1) (1)
accounted for by the formal trade market?
1.1.4 Give TWO reasons for the high turnover (amount of goods sold) that (2 x 2) (4)
spaza outlets in townships experience.
1.1.5 Write a paragraph of approximately EIGHT lines and explain why 85% (4 x 2) (8)
of informal traders are foreigners.
[15]
ACTIVITY 1.2

1.2. Refer to Figure 1.2, an extract on mining in South Africa.

1.2.1 Quote from the article why South Africa's mining industry is 'in (1x1) (1)
trouble'.
1.2.2 What percentage of the gross domestic product does mining (1x1) (1)
contribute towards the South African economy?
1.2.3 Which sectors of the economy, according to the article, does the (1x2) (2)
government think should be developed, to grow South Africa's
economy?
1.2.4 Briefly explain why the 'recent downturn in the metal industry and (2x2) (4)
subdued demand from China' has had a negative effect on South
Africa's mining sector.
1.2.5 In a paragraph of approximately EIGHT lines, discuss factors that (4x2) (8)
have contributed to the instability of the mining sector in South Africa.
[16]
ACTIVITY 1.3

1.3 Refer to Figure 1.3, an extract on informal traders.

1.3.1 State TWO general characteristics of informal trading evident in the (2x1) (2)
photograph.
1.3.2 State a reason why the contribution of the informal sector to the GDP (1x2) (2)
is estimated at 29%.
1.3.3 Why do small businesses not have effective business models and (2x2) (4)
expansion strategies as mentioned in the article?
1.3.4 Write a paragraph of approximately EIGHT lines to explain the (4x2) (8)
advantages and disadvantages of informal trading on the South
African economy.
[16]

ACTIVITY 1.4
1.4 Refer to Figure 1.4.

1.4.1 Would you classify the trading as formal or informal? (1x1) (1)
1.4.2 Give evidence in the photograph to support your answer to (1x2) (2)
QUESTION 1.4.1.
1.4.3 Why is the product that is sold likely to contravene (not meet with) (1x2) (2)
municipal by-laws?
1.4.4 Why does this type of trading not contribute directly to the GDP? (1x2) (2)
1.4.5 Give TWO reasons for the rapid growth of the informal sector in South (2x2) (4)
Africa.
1.4.6 Explain why the informal sector has an important role to play in the (2x2) (4)
South African economy.
[15]
 ECONOMIC GEOGRAPHY – INFORMAL SECTOR

TOPICS AS PER ATP (WEEK 28)

Concept and characteristics of informal sector employment

Reasons for high informal sector employment in South Africa
Challenges facing South Africa’s informal sector
Case studies to illustrate the above in the South African context

INFORMAL SECTOR MIND MAP

1. INFORMAL SECTOR QUESTIONS

ACTIVITY 1.1
1.1 Refer to Figure 1.1 on informal trade in South Africa.

1.1.1 Define the term informal trading. (1 x 1) (1)

1.1.2 What is the total worth of the South African food market? (1 x 1) (1)
1.1.3 What percentage of the figure stated in QUESTION 1.1.2 is (1 x 1) (1)
accounted for by the formal trade market?
1.1.4 Give TWO reasons for the high turnover (amount of goods sold) that (2 x 2) (4)
spaza outlets in townships experience.
1.1.5 Write a paragraph of approximately EIGHT lines and explain why 85% (4 x 2) (8)
of informal traders are foreigners.
[15]

ACTIVITY 1.2
1.2. Refer to Figure 1.2, an extract on mining in South Africa.

1.2.1 Quote from the article why South Africa's mining industry is 'in (1x1) (1)
trouble'.
1.2.2 What percentage of the gross domestic product does mining (1x1) (1)
contribute towards the South African economy?
1.2.3 Which sectors of the economy, according to the article, does the (1x2) (2)
government think should be developed, to grow South Africa's
economy?
1.2.4 Briefly explain why the 'recent downturn in the metal industry and (2x2) (4)
subdued demand from China' has had a negative effect on South
Africa's mining sector.
1.2.5 In a paragraph of approximately EIGHT lines, discuss factors that (4x2) (8)
have contributed to the instability of the mining sector in South Africa.
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ACTIVITY 1.3
1.3 Refer to Figure 1.3, an extract on informal traders.

1.3.1 State TWO general characteristics of informal trading evident in the (2x1) (2)
photograph.
1.3.2 State a reason why the contribution of the informal sector to the GDP (1x2) (2)
is estimated at 29%.
1.3.3 Why do small businesses not have effective business models and (2x2) (4)
expansion strategies as mentioned in the article?
1.3.4 Write a paragraph of approximately EIGHT lines to explain the (4x2) (8)
advantages and disadvantages of informal trading on the South
African economy.
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ACTIVITY 1.4

1.4 Refer to Figure 1.4.

1.4.1 Would you classify the trading as formal or informal? (1x1) (1)
1.4.2 Give evidence in the photograph to support your answer to (1x2) (2)
QUESTION 1.4.1.
1.4.3 Why is the product that is sold likely to contravene (not meet with) (1x2) (2)
municipal by-laws?
1.4.4 Why does this type of trading not contribute directly to the GDP? (1x2) (2)
1.4.5 Give TWO reasons for the rapid growth of the informal sector in South (2x2) (4)
Africa.
1.4.6 Explain why the informal sector has an important role to play in the (2x2) (4)
South African economy.
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