Overview of the Macroeconomic Drivers of the Region

Abstract

The ecosystems in Southern Africa are impacted by economic activity and population growth and pressure. There are several macro-economic drivers shaping these economic and population pressures and it is for this reason that this chapter unpacks the macro-economic drivers in the region. With the economy of South Africa dominating the regional economy (90% of Gross value added) it makes sense to discuss to the macroeconomic situation in Southern Africa by referring to policy and macro indicators in South Africa as a proxy of the regional situation. We also focus on the Limpopo province which shares boundaries and an ecosystem with three other countries in Southern Africa. Starting from the general macropolicy situation, major macro indicators for the region, the country and Limpopo are presented, jointly with the specific challenges, regulatory frameworks and policies that govern the development processes in the region. We focus on environmental, agricultural and trade policy measures, including their interlinkages, and illustrate that they provide a volatile and uncertain environment for structural development of the agricultural sector.