The Southern Africa region’s economic performance compared poorly to the other African sub-regions. In 2022, the Southern Africa region’s GDP growth barely reached 2.7 percent, a level much lower than the World’s (3.4 percent) and Africa’s (3.8 percent) averages.

This is largely a reflection of sluggish performance in South Africa where civil unrests, natural disasters—such as unprecedented floods and droughts, locust infestations, renewed anti-immigrant protest, and cost-of-living crisis in the run-up to the 2024 national election compound the electricity crisis to hamper economic growth. Intense adverse weather events also contributed to stalled growth in several countries (Zimbabwe, Zambia, Malawi, Madagascar, and São Tomé and Príncipe). Yet, the overall subdued growth performance masked positive achievements in some countries. Angola recorded a strong economic recovery attributable to favourable oil prices.

Likewise, the diamond industry performed well, as sanctions against Russia are benefitting country exporters (Namibia and Botswana) through higher prices and market share. Similarly, the easing of global travel restrictions, imposed during the pandemic, contributed to a rebound in tourism in 2022, which fuelled growth in some tourist reliant economies (Botswana, Mauritius, and São Tomé and Príncipe).

Report by the African Development Bank