July 1, 2022
1 min read

South African Countries Face Stagflation

Mr Masisi said the SACU countries, namely Botswana, South Africa, Eswatini, Namibia and Lesotho, are now at a stage where there is increasing risk for stagflation

President Mokgweetsi Masisi of Botswana said Southern African Customs Union (SACU) countries, namely Botswana, South Africa, Eswatini, Namibia and Lesotho, are now at a stage where there is increasing risk for stagflation.

In his opening remarks on the occasion of the 7th Summit of the SACU heads of state and government in Gaborone, the capital of Botswana, Masisi said the ongoing Russia-Ukraine conflict is dimming the economic growth prospects to a point where growth is estimated to slow down to 3.6 percent in 2022.

“We are now at a stage where there is increasing risk for stagflation,” said Masisi, adding that growth projections for 2022 stand at 3.8 percent compared to 6.8 percent in 2021 with an improvement forecast in 2023 to 4.4 percent.

Masisi said the Russian-Ukraine conflict has worsened the already depressed economy due to the impact of COVID-19 pandemic together with the disruptions of the global supply chains, thereby resulting in a surge in inflation the world over, including the SACU region.

The surge in inflation, especially for food and energy, remains a present global risk which is hurting consumers and wearing down their purchasing power, according to Masisi. This calls for SACU countries to undertake countercyclical measures to cushion their economies, said Masisi.

ALSO READ:First African-American woman sworn in as US SC justice

Furthermore, Masisi said the downward trend of the economy in the SACU region highlights the importance of accelerating the implementation of the respective countries’ economic recovery plans and continue to mobilize the necessary financial support.

Paulina Elago, the executive secretary of SACU, said the customs union seeks to deepen regional economic integration through the development of regional value chains in the agro-processing, textiles and clothing, cosmetics and essential oils as well as pharmaceuticals.

Formed in 1910, SACU is the world’s oldest customs union and has its headquarters in the capital of Namibia, Windhoek.

Previous Story

Shanghai Museums Reopen

Next Story

China Renews Support to HOA

Latest from AFRICA NEWS

Mali embraces solar power for rural areas  

The border village of Karan and its 3,000 people used to go days without electricity. Now, enough power is available around the clock to run small video gaming centers and boost commercial

British exports shine in African infrastructure 

Established 18 years ago, Dints is a London-based project integrator that specialises in connecting buyers, suppliers, logistics providers, and funding partners  A significant partnership between UK Export Finance (UKEF) and British firm

Congo doubles salaries for beleaguered army  

M23 has seized eastern Congo’s two largest cities in a swift offensive that has left thousands dead, forced hundreds of thousands to flee their homes, and piled pressure on President Felix Tshisekedi 
Go toTop

Don't Miss

Jaishankar Hosts African Ambassadors

EAM Jaishankar also highlighted the pivotal recognition of this effort

Ethiopia, UN ink pact for rehabilitation

Ethiopia has signed a third-party implementation agreement with the United