Notice to South Africans: Please visit sacoronavirus.co.za for up to date information on the COVID-19 outbreak.

COVID-19 In South Africa: Socio-Economic Impact Assessment

We have covered the COVID-19 pandemic, as it relates to South Africa and the issues that concern South Africans, since the lockdown was first announced on March 27th. We have reported on gender-based violence, the alcohol ban, evictions, and the overall impact on economic prosperity. This report from UNDP on the socio-economic impact of COVID-19 provides a high-level analysis of what we can expect, as we slowly recover.

Reprinted from reliefweb.int, prepared by the United Nations Development Programme – 2020-08-24

socio-economic impact of covid-19 on south africaSouth Africa is the country with the fifth-highest number of cases COVID-19 in the world, and the highest number of cases on the African continent. © UNDP Africa/ Morris Moma

South Africa’s GDP will take at least five years to recover from COVID-19 impact, says UNDP study

Pretoria, 24 August 2020 – South Africa’s overall GDP is expected to decline by at least 5.1 and up to 7.9 percent in 2020 and recover slowly through 2024. This will lead to major setbacks in addressing poverty, unemployment and inequality, according to a new UNDP study on the socio-economic impact of COVID-19 in South Africa.

The study focuses on how COVID-19 will drive temporary and long-term changes in poverty levels in South Africa. The number of households below the poverty line increases as households fall from the lower middle class. Fifty-four percent of households that have been pushed out of permanent jobs to informal or temporary contracts as a coping mechanism for businesses affected by COVID-19, are likely to fall into poverty after the 6-months stimulus package is over. Thirty-four percent of households are likely to exit the middle class into vulnerability.

“Inequalities within and among nations are being exposed and exacerbated by COVID-19, as the poor and vulnerable are unable to protect themselves,” said UN Resident Coordinator Nardos Bekele-Tomas. “While Government social protection grants tend to target the poorest, this study posits that care and support needs to be provided to those at the borderline of the poverty line, such as the vulnerable middle class, to reduce their likelihood of slipping into poverty.”

Populations hit especially hard are already-impoverished female-headed households, persons with only primary education, persons without social assistance, black populations, and heads of households who have been pushed from permanent to informal employment.

The launch of “The Socio-Economic Impact Assessment of COVID-19 in South Africa” report brought together representatives from government, civil society, private sector and academia. South Africa’s Minister of Cooperative Governance and Traditional Affairs Dr Dlamini-Zuma urged that the study should find its way into every district and municipality. She called for a skills revolution complemented by the adoption of a technology strategy and the delivery of a district developing model by promoting gender-responsive budgeting.

The personal testimony of Khumbulile Thabethe, a single parent with three children, was a stark reminder of how the virus impact hits hardest on the most vulnerable ones. “I’ve had to prioritize food over winter clothing for my three kids. Lockdown started in the warmer months and as we moved to the colder months, I could not cope,” she told the audience.

South Africa is the country with the fifth-highest number of cases COVID-19 in the world, and the highest number of cases on the African continent. The study further observes that economic sectors most disadvantaged by the COVID-19 outbreak include textiles, education services, catering and accommodations (including tourism), beverages, tobacco, glass products, and footwear. Small and medium enterprises are most negatively impacted.

Further reading:

Life: Working, pivoting and surviving under lockdown in SA

‘Calamitous’: domestic violence set to soar by 20% during global lockdown

Lockdown is hard on everyone

Women’s Day in a time of COVID-19

Ignoring effects of Covid-19 on women could cost $5tn, warns Melinda Gates

mm

Simon Dippenaar | SD Law Cape Town

http://www.sdlaw.co.za

Simon Dippenaar has a BBusSc LLB degree and Professional Diploma in Legal Practice from the University of Cape Town, and is an admitted attorney of the High Court of South Africa. He is the founder and director of private legal practice, Simon Dippenaar & Associates, with offices in Cape Town and Gauteng representing South African and international clients.

View more posts from this author

Stay in contact

Disclaimer

The information on this website is provided to assist the reader with a general understanding of the law. While we believe the information to be factually accurate, and have taken care in our preparation of these pages, these articles cannot and do not take individual circumstances into account and are not a substitute for personal legal advice. If you have a legal matter that concerns you, please consult a qualified attorney. Simon Dippenaar & Associates takes no responsibility for any action you may take as a result of reading the information contained herein (or the consequences thereof), in the absence of professional legal advice.