Reducing Drought's Impact on South Africa Economy

In the wake of fears the severe dry spell will impact on economic growth, South Africa has resorted to frantic measures to mitigate the drought. Among these include the channeling of some R500 million (about $35,7 million) in unbudgeted funds to ease the water crises in the provinces most affected by drought. Government has hired services of more than 1 500 unemployed youths nationwide with a view to monitor underground water leaks, which annually constitute 40 percent of the total water wastage for all urban areas.

Most of the country's water is lost through underground leakages as a result of aging water pipes while corrosion and water pipe bursts worsened the situation.

In the midst of the drought, the outlook is dire in the continent's most advanced economy.

Complicating the situation, the country's economic hub, the Gauteng Province is not spared from severe drought.

This follows revelations the capacity at the major source of water supply-the Vaal Dam- has reached alarming levels.

This spells a reduction in economic activity especially in the mining and agriculture sectors. The drought comes at a time the mining sector is already battling reduced production and loss of jobs.

The unprecedented El Nino weather have worsened the already depleted water resources by 30 percent while a further decline of 13 percent is projected in the next five years.

It is feared the setback will result in massive job losses in a country that is struggling to create employment for millions of youth.

Cattle ranchers are already feeling the pinch. These farmers are reducing their livestock as a result of deteriorating pastures and the current high feed-grain prices.

The price of red meat at a retail level is expected to fall by 8 percent to 15 percent between this month (December) and January next year, as more animals are being slaughtered by farmers, leading to an oversupply of meat in the short-term.

On average, beef and sheep prices at farm level are already marginally down by 1 percent and 2 percent respectively, with further declines expected as grazing conditions deteriorate due to a lack of rain.

Source: All Africa

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• Agriculture
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• Environment
• Drought
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• Economics