FHI - Socioeconomic Overview

Socioeconomic Overview

Zimbabwe

Zimbabwe is South Africa's largest trading partner in Africa. A landlocked country, it relies on South Africa for much of its imports and exports.

Twelve million people live in Zimbabwe, 32 percent of whom live in urban areas and 45 percent of whom are younger than 15.

Development is largely concentrated on the main watershed from Harare to Bulawayo. Agriculture (mainly tobacco) and mining (mainly gold and asbestos) are the major export earners, accounting for almost 70 percent of foreign exchange earnings. After economic growth in the 1980s, Zimbabwe experienced economic contraction during the 1990s. This contraction reached crisis stage from 1997 to 1999, when the currency declined by 75 percent, inflation approached 70 percent, and per capita income fell to US$360. Real government health expenditure declined by half from 1995 to 1999, crippling health services.

Zambia

Landlocked and with a small domestic manufacturing base, Zambia relies on South Africa for much of its imports. The country's estimated population of 9.5 million is sparse relative to its size, but its annual growth of 4 percent is rapid. The Zambian population is young -- 47 percent are younger than age 15 -- and childbearing begins early. Sixty percent of Zambian women have children or are pregnant by age 19. With 48 percent of its population in towns, Zambia is one of Africa's most urbanized countries. Zambia's economy is mixed, with a modern urban sector along the central Livingstone-Kasambalesa corridor and a rural subsistence agricultural sector. Copper contributes 95 percent of export earnings and 45 percent of government revenue. After economic growth in the 1960s and 1970s, Zambia experienced severe economic contraction. From the 1980s to the 1990s, per capita income declined by 3 percent annually, reaching US$328 in 1999. Real government health expenditure was halved between 1970 and 1990. In the absence of increased revenues, health services remain reliant on unsustainable external grants or loans.

South Africa

South Africa is southern Africa's transport nexus, with over 90 percent of the subregion's railways and highways. Durban is Africa's largest port and one of the ten largest ports in the world.

With a population of 40 million, South Africa has twice as many people as Zimbabwe and Zambia combined. Its population is young, with 43 percent under age 15 and urban. Fifty-eight percent of all South Africans live in towns.

South Africa is southern Africa's economic titan. Its per capita income of US$3,100 is far higher than those of Zimbabwe or Zambia. Also in sharp contrast to those countries, in South Africa development assistance comprises less than 2 percent of government spending.

However, South Africa also has profound poverty and inequality. More than 40 percent of the entire population and 72 percent of the rural population earn less than US$2.50 daily. Income inequality is among the world's highest: the richest 10 percent receive 47 percent of income, and the poorest 20 percent receive 3 percent of income. Incomes per head in Gauteng, the richest province, are six times greater than those in Northern Province, the poorest and most rural province.

Significantly, Messina is in Northern Province.

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