The Report South Africa 2012

In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.

The Rainbow Nation benefits from an internationally competitive private sector, which accounts for roughly 70% of GDP, and extremely competitive infrastructure; its utility sector, for example, produces just under half of the total power generated on the African continent. South Africa represents by far the most developed market in Africa, but there are still some structural challenges it is grappling with. Government strategies have set a target of increasing labour market participation from 54% in 2010 to 65% by 2030, bringing the number of workers in the formal sector to 25.3m people and lowering unemployment from 25% to 6%. While its fiscal space is narrow, long-term investments in infrastructure, education and health are expected to be key to attaining its growth potential. Recent years have seen both the public and private sectors look to strengthen regulatory frameworks in mining and industry – in some cases, like the automotive sector, with impressive results.

Indeed, since the end of apartheid in 1994 South Africa has become a major diplomatic player both on the African continent as well as further afield. Despite the size of South Africa’s economy, the country currently faces a number of major economic challenges. As of the end of July 2014 the unemployment rate was at 25.5%, according to data from Statistics South Africa, which was among the highest in the world. While the government’s long-term development plans are generally highly regarded, delivery and execution has occasionally been problematic. While there are major hurdles that must be cleared, given the country’s strong institutions and the rapid pace of economic expansion over the past two decades, South Africa should be able to look forward to 20 more years of peace and steady, sustained economic growth.

South Africa’s subpar economic performance over the last decade has weakened its macroeconomic fundamentals and social indicators. In response to formidable COVID-19-related challenges, government expenditure surged, and, amid declining revenue, the budget deficit widened significantly. The South African Reserve Bank (SARB) and the Prudential Authority (PA) preserved adequate liquidity conditions and financial-sector stability. The cyclical recovery from the deep contraction has been faster than expected but its strength is unlikely to be sustained. Benign global market conditions have supported asset performance, although term premia are elevated due to fiscal risks. Bank soundness indicators remain solid, but a deepening bank-sovereign nexus raises some concerns.

This report evaluates South Africa's progress towards sustainable development and green growth, with a focus on policies that provide incentives to protect South Africa's exceptionally rich biodiversity and promote more effective and efficient environmental management.

The right to food is guaranteed in South Africa’s Constitution as it is in international law. Yet food insecurity remains widespread and persistent, at levels much higher than in countries with similar levels of per capita GDP and development, such as Brazil. In this book, leading local and international researchers on food security and related policy work have come together to create the first systematic and trans-disciplinary analysis of food security and its multiple dimensions in South Africa and the southern African region. Drawing on Amartya Sen’s entitlement theory to identify the key drivers of hunger, they see food insecurity as a chronic, structurally based condition rather than only resulting from natural environmental disasters, temporary economic shocks and household vulnerabilities. The authors focus on a range of policy options and choices to provide short-term and longer-term solutions to the systemic causes of unemployment, failing rural livelihoods and traditional subsistence production. They also emphasise the linkages between the social and economic dimensions of food insecurity and use an integrative, interdisciplinary approach to analyse the reasons why these conditions persist and what can be done to address them. Importantly the book brings together work undertaken at local and national levels in new ways so that policy-makers, researchers, human rights advocates and social and economic scholars are better able to make the links between macro- and micro-processes of development.

JIMD Reports publishes case and short research reports in the area of inherited metabolic disorders. Case reports highlight some unusual or previously unrecorded feature relevant to the disorder, or serve as an important reminder of clinical or biochemical features of a Mendelian disorder.