Recent economic and social conditions in Southern Africa

Abstract

The hope for the 2019 version of this report is that, should member States pick the policy and administrative “low-hanging fruits”, then the 2018 socioeconomic setbacks would have been reversed, and the dreary outlook for 2019 and 2020 brightened. Regrettably, no advantage was taken of the few opportunities that 2019 presented, and the onset of the coronavirus disease (COVID-19) in early 2020 worsened the situation. COVID-19 has abruptly halted economic activity: trade and tourism have plunged; the envisaged increased manufacturing for faster industrialization is in abeyance; the State-owned enterprises’ governance woes remain unresolved; and the gravely impaired fiscal situations in 2018–2019 have degraded further, due to economic shutdowns and a sharp rise in health spending needed to save lives and preserve livelihoods in other areas. As member States were safely opening up economies in late 2020 and preparing for the post- COVID-19 “new normal”, they were mindful of the struggles ahead in steering economies out of the pandemic-induced economic slump, and have overcome other long-standing structural impediments to development. This report on the economic and social conditions in Southern Africa for 2020 is a document presented annually to the Intergovernmental Committee of Senior Officials and Experts of Southern Africa. The main objectives of this report are to present member States with the economic and social situation in Southern Africa in 2019, and prospects for 2020; and offer advice on selected policy issues in the region.