semi-nomads, who are dependent upon livestock for their livelihood,
make up a large portion of the population. Livestock, hides, fish,
charcoal, and bananas are Somalia's principal exports, while sugar,
sorghum, corn, qat, and machined goods are the principal imports.
Somalia's small industrial sector, based on the processing of
agricultural products, has largely been looted and sold as scrap
metal. Despite the seeming anarchy, Somalia's service sector has
managed to survive and grow. Telecommunication firms provide
wireless services in most major cities and offer the lowest
international call rates on the continent. In the absence of a
formal banking sector, money exchange services have sprouted
throughout the country, handling between $200 million and $500
million in remittances annually. Mogadishu's main market offers a
variety of goods from food to the newest electronic gadgets. Hotels
continue to operate, and militias provide security. The ongoing
civil disturbances and clan rivalries, however, have interfered with
any broad-based economic development and international aid
arrangements. In 2002 Somalia's overdue financial obligations to the
IMF continued to grow. Statistics on Somalia's GDP, growth, per
capita income, and inflation should be viewed skeptically.

South Africa
South Africa is a middle-income, emerging market with
an abundant supply of natural resources; well-developed financial,
legal, communications, energy, and transport sectors; a stock
exchange that ranks among the 10 largest in the world; and a modern
infrastructure supporting an efficient distribution of goods to
major urban centers throughout the region. However, growth has not
been strong enough to lower South Africa's high unemployment rate;
and daunting economic problems remain from the apartheid era,
especially poverty and lack of economic empowerment among the
disadvantaged groups. High crime and HIV/AIDS infection rates also
deter investment. South African economic policy is fiscally
conservative, but pragmatic, focusing on targeting inflation and
liberalizing trade as means to increase job growth and household
income.

South Georgia and the South Sandwich Islands
Some fishing takes
place in adjacent waters. Fees from fishing licenses and related
activities traditionally account for around 90% of South Georgia's
revenue (about $5.6 million in 2004). There is