Answer to Question #153702 in Macroeconomics for Karabo Maluleke

Question

Elaborate on three ways in which water transport is significant to the development and growth of the South African economy. ​​​

Answer 1

Water transport is one of the oldest modes of transport. However, water transport is associated to economic development in South Africa in the following ways;

1. Creation of employment opportunities- Many people have found job opportunities in water transport sector including ship captains and this has led to increase of incomes hence resulting to economic development in South Africa.
2. Trade- Every business is aided by transportation and water transport has provided a means of transporting heavy and bulky goods. Trade serves as a source of employment to South African citizens and government revenue hence resulting to economic development in South Africa.
3. Government revenue- Economic development is aided by presence of revenue to invest in such projects. Water transport aids imports and exports and both are taxed thus providing revenue to the government.