The country's stock exchange is among the 20 largest in the world, and South Africa is one of the few countries on the continent to rank as an upper middle income country. Some South Africans blame these immigrants for the country's high crime and unemployment rates, and in May 2008 tensions erupted in the townships, sparking a wave of xenophobic attacks that displaced over 25,000 and left over 60 dead. The African National Congress (ANC), which led the struggle against white minority rule and the apartheid system of state-enforced racial segregation, won control of the National Assembly. Following Mbeki's resignation, several prominent members of the party led a breakaway faction, now known as the Congress of the People (COPE). Strains in the ANC Alliance

The ANC has long worked in an interlocking tripartite alliance with the Congress of South African Trade Unions (COSATU) and the South African Communist Party (SACP). The ANC maintained its dominance but fell short of retaining its two-thirds majority in the parliament. Jacob Zuma was subsequently chosen by the new parliament to serve as South Africa's newest President. Several corruption scandals have centered on the country's justice organs themselves. HIV/AIDS

South Africa is believed to have the largest HIV/AIDS epidemic in the world, with almost six million people estimated to be living with the disease. Thabo Mbeki's stance on HIV/AIDS was a major political issue in South Africa during his tenure. The legislation was shelved, but the Zuma Administration is expected to resubmit it in 2011. The Economy

In 2009, South Africa weathered its first recession in 17 years. The rate of growth in Gross Domestic Product (GDP) averaged 3% per year in the first decade after apartheid and rose to an average of 5% from 2004 to 2007. President Zuma has actively sought for South Africa to play an increasing role in world economic fora. It also commits the government to fiscal discipline and emphasizes a role for the private sector. The 2010 World Cup

In June and July 2010, South Africa hosted the 2010 FIFA World Cup, games which the government hoped would draw global attention to the country and boost tourism and economic growth. The sport of soccer (referred to in South Africa as football) played an important role in the lives of the political prisoners held on Robben Island during the apartheid years. The government also made significant investments to ensure security during the event. But South Africa's leadership in the launching of NEPAD; the deployment of South African peacekeepers to Burundi, Cote d'Ivoire, and Sudan; and intensive South African involvement in the peace process in the Democratic Republic of the Congo have highlighted South Africa's capabilities as a regional actor. Military relations are reportedly improving. The United Nations

South Africa's role as a non-permanent member of the U.N. Security Council from 2007 through 2008 was controversial, and the Mbeki Administration was criticized by the United States as well as by many human rights activists for its lack of support for human rights issues raised before the Council. In July 2008, South Africa voted with Russia, China, Vietnam, and Libya in opposition to a U.S.-sponsored resolution on Zimbabwe (S/2008/447) that called for targeted sanctions on select members of the Mugabe regime, an international arms embargo, the appointment of a U.N. Special Representative on Zimbabwe, and the creation of a Panel of Experts to monitor and evaluate the situation and the effects of the sanctions. South Africa began a new term on the Security Council in January 2011. Resentment against immigrants remains a potential flashpoint for violence in South Africa. U.S. officials point out that South Africa continues to enjoy major benefits from the African Growth and Opportunity Act (AGOA, P.L. Social tensions over perceived inequalities in the distribution of wealth and inadequate service delivery, which resulted in violent attacks on African immigrants in 2008, are likely to continue in the near term as the government struggles to address the needs of its poorest citizens. South Africa's longer-term stability is linked to the success of the South African government and its partners in fighting poverty and reducing the toll of the AIDS pandemic.
Over fifteen years after the South African majority gained its independence from white minority rule under apartheid, a system of racial segregation, the Republic of South Africa is firmly established as a regional power. With Africa's largest Gross Domestic Product (GDP), a diverse economy, and a government that has played an active role in promoting regional peace and stability, South Africa is poised to have a substantial impact on the economic and political future of Africa. The country is also playing an increasingly prominent role in the G20 and other international fora. South Africa is twice the size of Texas and has a population of almost 50 million. Its political system is regarded as stable, but South Africa faces serious long-term challenges arising from poverty, unemployment, and AIDS.
The United States government considers South Africa to be one of its strategic partners on the continent, and the two countries commenced a new Strategic Dialogue in 2010, with the encouragement of the U.S. Congress. Bilateral relations are cordial; however, the U.S. and South African administrations have expressed differences with respect to the situations in Zimbabwe and Iran, among other foreign policy issues. South Africa begins a two-year term as a non-permanent member of the United Nations Security Council in 2011; U.S. officials articulated frustration with the South African government on positions it took during its last term on the Council in 2007-2008.
The African National Congress (ANC), which led the struggle against apartheid, has dominated the political scene since the end of apartheid and continues to enjoy widespread support among the population. The party has suffered internal divisions, though, some of which contributed to the resignation of President Thabo Mbeki in 2008 and the formation of a breakaway party, the Congress of the People (COPE). The ANC fell short of retaining its two-thirds majority in the parliament during the most recent elections, held in April 2009. Jacob Zuma, elected as head of the ANC in late 2007, weathered a series of corruption charges and was chosen by the ANC-dominated parliament after the 2009 elections to serve as the country's newest President.
South Africa has the largest HIV/AIDS population in the world, with almost 6 million people reportedly HIV positive. The Mbeki Administration's policy on HIV/AIDS was controversial, but the Zuma Administration has made significant commitments to addressing the disease. The country has weathered a series of corruption scandals, and continues to struggle with high crime and unemployment rates. Mounting social tensions related to the competition for jobs, resources, and social services led to an eruption of xenophobic violence against immigrants in 2008; some resentment against foreign workers in the country lingers. South Africa, with its wealth of mineral resources and diverse manufacturing sector, has benefitted from steady economic growth in recent years, but the country weathered a recession in 2009 and economists predict weaker growth prospects for the near future. Job creation remains a major challenge for the government.
In 2010, South Africa successfully hosted the largest event ever held on the African continent, the FIFA World Cup, an international football (soccer) competition. The government and the private sector undertook a wide variety of construction and infrastructure projects in preparation for the event, which was attended by over three million people and drew over 300,000 tourists. South Africa defied many expectations during the event—six new stadiums were finished on time, crime was low, and South Africans introduced the world to a long (and loud) plastic horn known as the vuvuzela. Americans bought more tickets to the event than any other nationality. The games were a point of pride, not only to South Africans, but to many across Africa.