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.

The 2015 Brookings Financial and Digital Inclusion Project (FDIP) Report and Scorecard evaluate access to and usage of affordable financial services across 21 geographically and economically diverse countries. The 2015 FDIP Report and Scorecard seek to answer a set of fundamental questions about today's global financial inclusion efforts, including: 1) Do country commitments make a difference in progress toward financial inclusion?; 2) To what extent do mobile and other digital technologies advance financial inclusion?; and 3) What legal, policy, and regulatory approaches promote financial inclusion? John D. Villasenor, Darrell M. West, and Robin J. Lewis analyzed the financial inclusion landscape in Afghanistan, Bangladesh, Brazil, Chile, Colombia, Ethiopia, India, Indonesia, Kenya, Malawi, Mexico, Nigeria, Pakistan, Peru, the Philippines, Rwanda, South Africa, Tanzania, Turkey, Uganda, and Zambia. Countries received scores and rankings based on 33 indicators spanning four dimensions: country commitment, mobile capacity, regulatory environment, and adoption of traditional and digital financial services. The authors' analysis provides several takeaways with respect to expanding financial inclusion across diverse cultural, economic, and political contexts: · Country commitment is fundamental. · Movement toward digital financial services will accelerate financial inclusion. · Geography generally matters less than policy, legal, and regulatory changes, although some regional trends in terms of financial services provision are evident. · Central banks, ministries of finance, ministries of communications, banks, nonbank financial providers, and mobile network operators play major roles in achieving greater financial inclusion. · Full financial inclusion cannot be achieved without addressing the financial inclusion gender gap. This year's Report and Scorecard are the first of a series of publications intended to provide policymakers, the private sector, nongovernmental organizations, and the general public with information that can help improve financial inclusion in these countries and around the world.

The overwhelming challenge that South Africa faces, and has to date failed to address, is unemployment, which falls especially on African youths who were promised a better future after 1994. If the current unemployment challenge is not addressed, it will be impossible to sustainably lift many millions of people out of poverty. How South Africa Works reviews the country’s major economic achievements over the past two decades. Through numerous interviews with politicians, business leaders and analysts, it examines the challenges and opportunities across key productive sectors – including agriculture, manufacturing, services, and mining – illustrative of the policy challenges that leaders face. It scrutinises the social grant and education systems to understand if South Africa has established mechanisms for people not only to escape destitution but be ready to be employed, and identifies steps that some of South Africa’s most notable entrepreneurs have taken to build world-class enterprises. Recognising the essential challenge to cultivate more employers to employ people, How South Africa Works concludes by offering an agenda and active steps for greater competitiveness for government, business and labour.

This 2014 Article IV Consultation highlights that South Africa’s growth has slowed in recent years, specifically relative to other emerging markets. Although weak trading partners’ growth contributed to the slowdown, increasingly binding structural constraints, such as protracted strikes and electricity constraints, have been important factors. Unemployment remains high at 25.5 percent. Notwithstanding expenditure discipline, the general government budget deficit was 4.5 percent of GDP in 2013, and public debt rose to 45 percent of GDP from 27 percent in 2008. The outlook is lackluster with considerable risks. Growth is projected to slow to 1.4 percent in 2014 and rebound only modestly to 2.1 percent in 2015 on improved industrial relations.

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.

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.

This 2014 Article IV Consultation highlights that South Africa’s growth has slowed in recent years, specifically relative to other emerging markets. Although weak trading partners’ growth contributed to the slowdown, increasingly binding structural constraints, such as protracted strikes and electricity constraints, have been important factors. Unemployment remains high at 25.5 percent. Notwithstanding expenditure discipline, the general government budget deficit was 4.5 percent of GDP in 2013, and public debt rose to 45 percent of GDP from 27 percent in 2008. The outlook is lackluster with considerable risks. Growth is projected to slow to 1.4 percent in 2014 and rebound only modestly to 2.1 percent in 2015 on improved industrial relations.