Poverty Reduction in Southern Africa A Subregional Brief
(ECA - SA-SRDC, Lusaka)

East and Southern Africa Subregional Follow-up Conference to the World Social Summit
15-17 March, 1999 Nairobi, Kenya

1. This paper reviews policy actions and programs adopted in the Southern Africa subregion to implement the principles and fulfil the commitments enunciated in the Copenhagen Declaration on Social Development adopted by the World Summit for Social Development. Government activities are assessed to gauge their impact on poverty reduction.

2. During the last five years, the Southern Africa subregion has enjoyed a relatively good economic growth. In 1995, the region’s average gross domestic product (GDP) per capita of US$934, at 1987 constant prices, was relatively high compared to the rest of sub-Saharan Africa (US$867). In spite of this, the benefits have not trickled down to the people at grassroots level and poverty levels in the subregion continue to be very high with the majority of the population living below the poverty line. Income inequality is large both between and within countries. The average human development index (HDI) of 0.512 for all the Southern African countries ranks among the lowest in the world. The subregion has high infant mortality rates (82 per 1000 live births) compared to all developing countries (64 per 1000), industrial countries (14 per 1000) and the rest of the world (58 per 1000). The average life expectancy at birth is also one of the lowest (Table No. 1).

3. The high incidence of poverty in the majority of countries in the subregion is a result of a combination of various factors, including: (a) high unemployment levels; (b) limited access to productive resources such as land and capital which adversely affects rural women; (c) urban biased development policies with the attendant rural-urban migration, which has led to rural areas becoming unattractive and put pressure on capacity to provide social services; (d) inability by governments, communities and other development agencies to effectively channel resources to poverty eradication programs; (e) population pressures leading to cultivation of marginal lands; (f) external factors, such as unfavorable terms of trade for most of the subregion's exports on the international market and the attendant debt servicing obligations, leading to limited resources to devote to poverty programs in a number of countries; (g) the negative impact of structural adjustment programs that some countries have been implementing; and (h) persistent droughts. Nevertheless, the causal-effect relationship of these factors on poverty varies from country to country.

4. There are wide variations in the incidence of poverty from country to country within the subregion. Poverty is particularly great among the rural population and those in low-income urban settlements. Income distribution inequalities, taken as a factor of poverty, are very high in the subregion. The extent of inequality is such that a tiny proportion of the population earns more than 50 per cent of the total income. As can be seen from table 1 above 50 per cent of the countries in the subregion had a HDI above 0.5 in 1995, while the rest remained among the poorest countries in the world. In countries such as Mozambique and Zambia, for instance, about 71.2 and 79 per cent of the population in the rural areas is considered to be poor, while the proportion in the urban areas is 62 and 44 per cent, respectively. Some countries, notably, Botswana, Mauritius and South Africa have relatively lower incidences of poverty due to their sustained economic development over long periods of time. The respective average GDP per capita of US$1,857, US$2,516 and US$2,165 in the three countries are more than fifteen times those of the poorest countries such as Malawi (US$146), Tanzania (US$155) and Mozambique (US$133).

5. For the purposes of the Subregional Follow-up Conference to the World Summit for Social Development, this Note by the Secretariat focuses on the following specific themes: Poverty Reduction, Employment Generation, Public Spending on Social Services and Good Governance.

6. The range of indices for Southern Africa reflects diversity in the level of social development. Failure of the economic growth (which was expected to generate the trickle-down effect and reduce poverty), economic mismanagement and the need to address the adverse impact of other factors including transparent and accountable government at all levels, have led governments and other development agencies to evolve broad based development strategies. Poverty has since then increasingly become an area of immediate concern for governments in Southern Africa subregion, donor agencies and civil society since early 1990s due to failure of previous policies to bring about economic development, including poverty eradication. Comparing HDI in 1990 with 1995, each one of the southern African countries has shown improvements. Major hurdles to poverty alleviation initiatives include, however, the need for a coherent poverty alleviation strategy both at national and subregional levels, with built-in monitoring and evaluation systems and coordination mechanisms; and very poor integration of the population concerns.

7. A Regional Forum on Poverty Eradication in Southern Africa was held in Windhoek, Namibia, in May 1997. It addressed poverty issues in the subregion and setting up of mechanisms for the adoption of national poverty reduction action plans which would ensure better implementation, coordination and monitoring of poverty reduction initiatives at country level. The Forum adopted a Declaration which emphasized the role of governments in involving people, non-governmental organizations (NGOs), community based organizations, private sector, the media and other agencies in formulating and implementing programs designed to eradicate poverty in the subregion. The Forum called on the Southern African Development Community (SADC) to encourage member states to place poverty issues at the centre of their development agenda. The international community in general and the Economic Commission for Africa Subregional Development Centre for Southern Africa (ECA/SRDC-SA) in particular and in collaboration with other United Nations organs, were urged to facilitate capacity building workshops in the area of poverty reduction. Poverty alleviation is currently a policy target by all governments in the subregion. With the backing of the donor community, nearly all Southern African member States are implementing one form of poverty reduction program or another. Most of these programs are targeted at women who are the most vulnerable either as heads of households or wives to unemployed men or men in low-paid jobs. The programmes have generally been poor-friendly, focussing particularly on the following areas: employment and income generation, land ownership and the provision of social services (see Table No. 2).

8. Productive work and employment have not only been considered by Southern African governments to be both central and decisive elements of development, but also recognized as effective methods of combating poverty and promoting social integration. Opportunities for income generation, diversification of activities and increase in productivity in low-income and poor communities has been one of the major outcomes of the policy strategies in the fight against poverty in Southern Africa. In the Kingdom of Lesotho, the Lesotho Construction Unit, through its civil works section and the Lesotho Highlands Revenue Fund, are intensifying employment creation efforts. In some other countries, women in particular are organized in small groups for collective struggle to earn income. Organized work teams for civil works such as unblocking of road drainage systems, street cleaning and waste disposal have received particular attention in countries such as Lesotho and Zambia.

9. Small-scale credit is being recognized increasingly as one of the most effective tools for improving Africa’s economic performance and helping combat poverty on the continent. Women have often had the least access to formal banking institutions, despite their position as the main producers of Africa’s food crops and their predominance in the informal sector in many African countries. Extending loans to women is a highly effective way to combat poverty. In Southern Africa, the past few years have seen a marked growth in micro-credit organizations with particular attention to women. In South Africa, for instance, a pilot project of the United Nations International Fund for Agricultural Development established several "village banks"; each of them has established its own links to commercial banks, which provide funds, training, legal fees and other assistance. In addition, the government has made special credit arrangements under Growth, Employment and Redistribution (GEAR) program. This program targets female entrepreneurs in disadvantaged locations in both rural and urban areas. Other countries including Botswana, Malawi, Zambia and Zimbabwe, to name a few, have also adopted gender biased credit schemes.

10. Recognizing that poverty is closely related to productive employment, Southern African governments are focusing on rising employment levels and reducing unemployment by providing an environment conducive to economic growth thus investment led employment generation. Former measures to fight against poverty such as free transfer of poverty relief items such as food items (maize, rice, beans, salt, edible oil, etc.) have been found not to be effective.

11. Agriculture is the main economic activity in almost all-rural communities in Southern Africa. Consequently, the initial resource endowment, particularly in terms of access to land, is likely to be a crucial determinant of the pattern of agricultural development a country or region will follow. Rural residents mostly depend on agriculture for their livelihood. In Southern Africa, like in most agrarian societies of Africa, land tenure arrangements under traditional agriculture systems are still under customary law which puts emphasis on inherited rights to have access to land in order to grow food for their families. Land reforms and measures to expanding and improving land ownership and the security of land tenure are being adopted in some countries. Policies are being focused on ensuring equal rights of women and men in developing new agricultural land, promoting fair land rents, making land transfers more efficient and fair, and adjudication of land disputes.

12. These land reform measures have, however, been found to be inefficient, because land alone is not enough. Those who have access to land often lack the resources to utilize it, such as seeds, fertilizers and tools with which to work on the land. This, in turn, has failed to improve social, economic and living conditions in rural areas, thereby encouraging rural exodus.

13. In addition to legal reforms, institutional reforms have also been considered to be necessary for an effective poverty reduction policy. Nevertheless, despite the number of institutional reforms adopted in this respect, the absence of clear titling and property rights is also considered as a major institutional constraint to the growth of agricultural production. Institutions, in addition to policies and laws, can affect poverty reduction schemes in many ways. Improvement in capacities of development institutions is another aspect that most countries in Southern Africa have paid particular attention for fight against poverty. In Mozambique, for instance, the Ministry of Planning and Finance has established an inter-ministerial working group to design Poverty Action Plan. This will allow the government to allocate appropriate resources to those sectoral programmes linked with quickest answer to poverty reduction.

14. There is strong relationship between agricultural growth and poverty alleviation. As in other subregions of the continent, most of Southern Africa’s poor live in rural areas and depend on agriculture for survival. The dependence is both direct, in growing food and cash crops, and indirect by working on farms or by trading in agricultural inputs and products. Growth of agriculture, agricultural production and agriculture incomes helps the rural poor alleviate poverty and has a direct bearing in many human development indicators. In this context, the lack of an appropriate irrigation system and the prevalence of erratic and below normal rainfall in the Southern African subregion have led to reduced crop yields, thereby aggravating the poverty situation in the subregion.

15. The satisfaction of basic human needs is an essential element for poverty reduction. Southern Africa’s overall policy on social development emphasizes adequate social investment, particularly in human capital development, through education and health. Inadequacies in relation to meeting such basic needs as nutrition, health, water and sanitation, education, housing and participation in social and cultural life are featuring prominently in virtually all countries action plans for poverty reduction. The pluralistic nature of most societies has at times resulted in problems for the different groups to achieve and maintain harmony and cooperation and to have equal access to all resources in society. Some progress has, however, been made towards social integration as to create "a society for all" in such countries as Mozambique and the Republic of South Africa. That progress has been noted as shown in the continued spread of democracy, wider recognition of the need to respect human dignity, and the recognition of each individual right in the context of the rule of law.

16. Indicators for education within the subregion show a significant variation in primary school enrolment, from 60 per cent in Mozambique to 135 in Malawi. Malawi appears to have experienced a huge improvement in enrolments with the rate more than doubling in recent years. In 1995 other countries also achieved high rates of enrolment (e.g. Botswana, Mauritius, Namibia, South Africa, Swaziland and Zimbabwe).

17. The fight against poverty in the subregion is increasingly coming up against the debilitating HIV/AIDS pandemic, which aggravates poverty-related problems. The unemployment situation, aggravated by privatization and reform programmes, coupled with sluggish rate of growth in job opportunities, has worsened poverty levels in the subregion.

8. Over the past three years or so, Southern Africa has enjoyed an overall atmosphere of relative peace and political stability and witnessed the consolidation of a democratic culture, good governance, the rule of law and respect of human rights. This is reflected in a number of positive developments, such as the holding of the first municipal elections in Mozambique in June 1998, the holding of general elections in Lesotho in May 1998, the change of leadership in Botswana and the holding of elections Swaziland in October 1998. In South Africa, President Nelson Mandela retired as a President of the ruling African National Congress Party on 31 March 1998. These smooth transfers of power reflect a step forward in the maturation of democracy in the subregion.

19. Notwithstanding these positive developments, the situation in Angola and the Democratic Republic of Congo is a source of great concern to the subregion. The military situation in Angola has been deteriorating recently. Efforts are being made by some SADC member States to find a diplomatic solution to the conflict in the RDC. It is hoped that these complementary initiatives will assist in the restoration of peace, security and stability in the subregion.

20. The process of putting into place a policy and institutional framework for gender in Southern Africa can be traced to 1990, when the SADC Council of ministers mandated the SADC Secretariat to explore best ways to incorporate gender issues in the SADC Programme of Work.

21. 1997 marked the turning point in the recognition of the importance of gender as key development issue and gender equality as essential for the attainment of democracy and human rights in the subregion. In February 1997, the SADC Council of Ministers approved the establishment of a policy framework for mainstreaming gender in all SADC activities. In September 1997, SADC head of States and Government signed a Declaration on gender and Development thereby committing themselves and their respective countries to take steps towards the achievement of gender equality in the subregion.

22. The following significant developments have also taken place:

1. Establishment of Gender Unit in SADC Secretariat, June 1998;
2. Approval of the Gender Plan of Action in Southern Africa, July 1998;
3. Workshop on Integration of Gender Issues and Concerns in the Implementation of the Convention to Combat Desertification (CCD), February 1998;
4. Subregional Conference on Prevention of Violence Against Women, March 1998;
5. Conference on Women and Trade, June-July, 1998.

23. Problems of poverty reduction are global in character. The situation of most African countries, and particularly the Southern Africa subregion, is critical and requires special attention and action. The foregoing review indicates that poverty incidence in Southern Africa remains high and that unless concerted efforts are made the situation is likely to worsen. Policies and programs to alleviate poverty have only gained prominence in the early 1990s partly due to donor influence and support. In recent years, attempts to reduce poverty have been hampered by absence of carefully formulated policy and institutional frameworks including inadequate resources.

24. More fundamentally, most policies and programs at national and local levels have failed to analyze the impact of macroeconomic and sector policies on the poor. In addition, poverty reduction efforts have also failed to be properly linked and coordinated at country level, thereby making them less effective.

25. Sustainability of the programs in the long run is doubtful because of overwhelming dependence on external resources in the majority of countries. Some countries will find it difficult to sustain poverty reduction programs due to economic difficulties they are experiencing and would continue to rely on donors in the short and medium term. Only a few countries such, as Botswana, would be in a position to ensure long term sustainability of programs from their own resources because of favorable economic conditions.

26. Southern African countries are at different levels of poverty alleviation programs, policy formulation and implementation. While some have already formulated policies and are in the process of implementing them, others are only beginning to appreciate the magnitude of the problem following recent surveys on the incidence of poverty.

27. In summary, goals and objectives towards poverty reduction require continuous efforts to reduce and eliminate major sources of social distress and instability for families and the society. Particular focus should be placed on and priority attention given to the fight against the generalized conditions that pose severe threats to the health, safety, peace, security and well being of the people. Among these conditions are chronic hunger; unemployment; malnutrition; organized crime; HIV/AIDS; corruption; armed conflicts; intolerance and incitement to ethnic, religious and other hatred.

VI. APPENDIX