Inequality in Southern Africa:

Options for Redress

P o l i c y B r i e f

Introduction and Background As a result, the SADC region can only be described as
The Southern African region is characterised by a region in deep crisis. More than 60% of the population
unacceptable high levels of unemployment, poverty in SADC lacks access to an adequate supply of safe water,
and inequality. In many cases, poverty and inequality a third of the SADC population lives in abject poverty
are on the increase, particularly in countries in crisis and about 40% of the labour force is unemployed or
such as Zimbabwe and Swaziland. Neither agricultural underemployed. Poverty levels have not only increased,
economies such as Malawi nor resource-rich countries but have also become more pronounced in urban areas
such as Namibia, South Africa and Angola have been and amongst female-headed households and the youth,
able to significantly reduce wealth gaps and the rates of in particular.
poverty and unemployment. When measured against the Human Development
Most SADC countries managed to achieve some Index (HDI) - life expectancy, education and standards
progress in the period immediately after independence, of living - seven SADC countries fall in the medium
usually through expanded social services, to reach the category while six are in the low HDI group. Although
majority of the population which had been deliberately the majority of the countries fall within medium income
neglected under colonial rule. However, there was no category the levels of income inequality in the region
systematic transformation of economic structures, and remain amongst the highest in the world (see table
the typical African enclave economy persists until today. below). The distribution of resources and income
This enclave economy which is typically characterised is highly skewed and in some cases racially biased,
by a relatively small and well-resourced formal sector for example, in South Africa where white nationals
that operates in isolation from a large, growing and constitute around 5% of the population and own over
poverty-stricken informal economy and the communal 80% of the land.
subsistence economy. Social mobility and equal opportunity remain alien
concepts for far too many people in the region. There is
2 Traditional growth strategies are inadequate

a close and direct relationship between inequality and growth rates of 13% between 1970 and 1990 but could
poverty, and thus any attempt to deal with poverty has not eradicate the high levels of poverty. What matters is
to address the question of inequality as well. Persistent not the quantity of growth but its quality. Currently, the
gender inequalities in virtually all spheres of life – from region’s inherited structural legacies continue to shape,
customary practices and labour market discrimination to produce and reproduce underdevelopment which has
unequal access to social services and economic resources led to a deep developmental crisis.
such as land – are still a defining feature of Southern
Africa. This is reflected, for example, in the gendered Southern Africa needs to break out of grafted
impact of HIV/AIDS, which is still a major scourge in capitalism and enclave economy
the region. Given the interlink between poverty, gender Southern Africa continues to experience the problems
and HIV, it is hardly surprising that the epidemic has associated with its “grafted capitalism”. During
hit black working class women and female peasants the colonialism, the region experienced a special type
hardest. This can only be altered through structural of social formation where the capitalist sector of
interventions that will empower women to change their the economy was grafted onto a pre-capitalist form
socio-economic status. HIV/AIDS cannot be treated of production in a distorted manner. This kind of
as a medical problem but requires social and economic capitalism did not transform the economy as a whole
changes. but only a small formal enclave sector, thus failing
Widening disparities have increased the sense to produce dynamic growth and development. This
of injustice and deprivation for many as neither the small, formal enclave economy was totally dependent
bureaucratic, state-centred, socialist form of government on external factors such as markets in, and capital
in Angola nor the market-driven approaches of countries from Europe. This dependency is still visible today,
like South Africa and Namibia were able to redress the as Mozambique, for example, depends for 50% of its
colonial legacies of inequality and exclusion. There national budget on donors while Lesotho, Malawi and
is, thus, no doubt that Southern Africa needs a fresh Zambia rely on donors for 35 % of their annual budgets.
and different approach to address the current socio- Even Botswana received substantial donor support for
economic crisis. its budget in 2010.
Southern Africa’s enclave economies exist alongside
Traditional growth strategies are inadequate an underdeveloped peasant-based subsistence rural
The traditional strategies to foster growth as promoted economy and an urban informal economy. The formal
by the IMF and World Bank, namely, macroeconomic sector consists of a small local and foreign business
stability and market-friendly reforms, are evidently elite and wage workers, which usually account for less
insufficient to meet the current challenges. Instead, far than 20% of the labour force. This sector consists
more emphasis needs to be placed on laying institutional of enterprises of various sizes (either state-owned or
and social foundations for structural changes that will privately-owned) and is relatively productive compared
facilitate a meaningful development process. to the other sectors. External forces such as Africa’s
Most SADC governments are still trapped in the trading partners and foreign investors shape output and
illusion that the private sector must be the engine for production methods.
growth and the creator of wealth and development. The urban informal sector is characterised by easy
Thus government’s role in the economy is reduced entry and exit, linked to both formal and rural sectors
to that of being a creator for conducive investment and driven by self-employment activities, dependent on
conditions for private (usually foreign) capital. Such the ingenuity of individuals. It accommodates about
supply-side interventions and market-driven approaches a third of the region’s labour force. The communal
to development are common in the region today.
Most SADC governments, however, fail to realise that
poverty levels in Southern Africa worsened during the
implementation of such neo-liberal policies in the past
20 years. Botswana, for example, had average economic
Time for change 3

sector is the traditional or pre-capitalist sector, with all region’s unacceptable levels of inequality. There is a close
the variations this entails in the African context. It is and direct relationship between inequality and poverty
highly differentiated with a number of linkages to the and thus any attempt to deal with poverty has to address
formal and informal economy and accounts for about the question of inequality as well. It is essential that
50% of the labour force. the issues of poverty and inequality are mainstreamed in
The continued co-existence of these sectors all aspects of social and economic policy. Furthermore,
and Africa’s lack of socio-economic development is resources set aside for poverty reduction, social
perpetuated by a number of factors including: protection, and job creation cannot be left to the vagaries
External dependency (shown in trade, technology, of corrupt officials or bureaucracies that usurp scarce
information, human resource and capital flows), which resources needed to improve livelihoods.
maintains the enclave economy; An alternative approach to development ought to
Distributive inefficiencies resulting in the non- be pursued
formal sectors having unequal access to productive There is no doubt that current and future challenges
assets and markets; in fighting poverty and inequality remain daunting, but
Allocative inefficiencies which make the formal the experiences gained in the region over the past 40 years
sector unnecessarily capital and technology intensive have provided us with a better understanding of what
(thus reducing its requirements for labour) while the needs to be done. It is clear that orthodox economic
non-formal sectors tend to be without capital and policies and the traditional strategies to foster growth
technology, thus making productivity increases almost as promoted by the IMF and World Bank, namely,
impossible; macro-economic stability and market-friendly reforms,
Technical inefficiencies result in low technological so often uncritically embraced by our governments, are
capabilities, thus limiting the adaptations that can evidently insufficient to redress inequality and poverty.
be made to production techniques and the nature of Instead, far more emphasis needs to be placed on laying
products and services produced. This, in turn, prevents institutional and social foundations for structural
the establishment of value chains. Thus, levels of changes that will facilitate a meaningful development
productivity of labour, capital and land tend to be low process and a systematic redistribution of resources. This
compared to optimal methods of production. requires interventions regarding improved governance
Southern Africa’s extractive industries have further and participatory democracy, a human rights approach
fuelled inequality and poverty. They have deepened to development, a firm commitment to social justice and
enclave developments as the extractive zones became a different approach towards the process of globalisation.
the centre of government and private sector attention A partial approach that deals with only one aspect
and not the basis of diversification. Thus, while oil, while ignoring the others will not suffice to meet the
copper, gold, diamonds, chrome, gas, bauxite, fisheries, challenges at hand. For example, focusing on governance
platinum are in plentiful supply in the SADC region, issues only, while ignoring the structural inequalities
unemployment is increasing, poverty is deepening and created by globalisation will be as deficient as a focus
inequality between and within countries is widening. on external forces only while ignoring self-enrichment
and corruption at the national and local level. The
Time for change proposals contained in the publication, “Alternatives
A recent study on inequality in Southern Africa by to Neo-Liberalism in Southern Africa” (ANSA)2 point
OSISA and Namibia’s Labour Resource and Research to possible interventions and form a basis for sketching
Institute (LaRRI)1 confirmed the urgent need for a way forward.
immediate and structural interventions to deal with the

2 Kanyenze, G, Kondo, T and Martens, J (eds) 2006. Alternatives to

1 Jauch, H and Muchena, D (eds) 2011. Tearing us apart: inequalities in Neoliberalism in Southern Africa: The search for sustainable human
Southern Africa. Johannesburg and Windhoek: OSISA & LaRRI. development in Southern Africa. Harare: ANSA.
4 A developmental state approach is needed

An important starting point is to recognise that how global resources are controlled and distributed and
development is not just about economics. It includes how this global system affects Africa.
human rights, community rights and the right to
national or regional self-determination. It has to deal A developmental state approach is needed
with issues of equity and fairness in the distribution of Southern Africa needs a “developmental state” that
resources at local, national, regional and global levels. changes its focus away from being a provider of
The provision of social services such as water, energy, favourable investment conditions for (largely foreign)
health and education cannot be guaranteed for all if investors towards a regulator and an economic player that
they are left to market forces alone. Social services are can effect redistribution and facilitate the achievement of
not matters to be privatised, as they are part of basic substantial equality. The need for a pro-poor economic
human rights requiring states to have the responsibility development strategy which promotes economic growth
to secure them for all their people. The State must that provides jobs and economic opportunities for the
therefore be developmental as well as ethical, responsible majority is blatant in all countries.
and accountable to the people, particularly working Effective developmental interventions may differ
people and the poor. from country to country, but an accountable, transparent
Development must lead to a better life for the and ethical state is certainly a common requirement. Past
majority and eradicate poverty. This can only be experiences have shown that responsive and accountable
achieved if development is based on the promotion institutions of governance are often the missing link
and protection of human rights, which include political between anti-poverty efforts and poverty reduction.
or civil rights (also known as “blue rights”), economic Even when a country seems to implement pro-poor
rights (also known as “red rights”) and social and cultural national policies and targets its interventions fairly well,
rights (also known as “green rights”). All these rights faulty governance can nullify the impact. Angola and
must be ensured and defended at all times. There can Zimbabwe provide telling case studies in this regard.
be no compromise, for example, granting only political All too often, what started out as a popularly
rights while economic rights are violated. elected and supported government after independence
Therefore, what is needed is a “livelihood approach” that carried the hopes of the majority, turned into a
to human rights because they are not just individual self-serving elite with scant regard for the well-being
rights but also include community and national of the poor. In some cases, these elites resorted to
rights. Important aspects are the right to national self- manipulation, coercion and repression to stay in power
determination (as enshrined in the United Nations while forging and close alliances with global corporations
Charter) and the right of local communities to develop who retained control over Africa’s natural resources. All
their own lifestyles and livelihoods. A people-centred too often, Africa’s political elites departed from their
development strategy thus needs to address the issues of historical responsibility to fight poverty and inequality.
direct concern to the people such as land reform, food Allowing this scenario to continue would destroy
security and sustaining livelihoods. any hopes for redistribution and social justice in
Southern Africa needs a development strategy based Southern Africa. Improving governance and enhancing
on three basic pillars, namely: a participatory democratic culture that empowers people
The “social factor”, meaning how people’s basic at grassroots level is central for the manner in which
human rights are safeguarded and how vulnerable people resources are mobilised and spent. Holding governments
are protected against poverty and exploitation. accountable to the people is a key requirement for good
The “democratic factor”, meaning how the governance. Holding regular elections – free and fair -
political system functions, how decisions are made contributes to accountability, especially if they are also
and implemented, how resources and opportunities held at the local level. But such formal, democratic
are distributed and how justice and fairness is achieved. procedures do not necessarily provide protection
The “global factor”, meaning how the system works against poverty and inequality and may not result in
at global level, how decisions are taken and implemented, a substantial democracy that is participatory. Shifting
decision-making power closer to poor communities
A movement from below must be cultivated 5

by devolving authority to local government can help developments in Africa and elsewhere. At times they use
promote poverty reduction and reduce inequality, as long the pretext of human rights to exercise their power in the
as the new responsibilities are accompanied by resources name of “democracy”. There were many interventions
and capacity building. But, that is only half the story. by the Empire on the continent (such as the murders
The other half is that poor people and communities of Patrice Lumumba in Congo and Thomas Sankara
must organise themselves to advance their own interests. in Burkina Faso) and similar interventions took place
A major source of poverty is people’s powerlessness – outside Africa, for example, the attempt by the US
not just their distance from government. Building administration to overthrow the Chavez Government,
grassroots structures that facilitate more direct popular in Venezuela. Likewise, the war by the US and its allies
participation (and power), like the community councils in Iraq was officially justified as an attempt to “restore
in Venezuela might well be a model to pay attention to. democracy”. These interventions are not motivated
by the desire to protect human rights but by imperial
A movement from below must be cultivated interests of gaining control over resources such as oil.
In Southern Africa there is currently a glaring absence of a Thus, it is crucial to not allow the imperial global
robust engagement with the State, which is symptomatic forces to hijack human rights issues for their own ends.
of the state of civil society – state relations across the Human rights issues must be addressed and defended
region. There is thus a need to (re)build a movement by Southern Africans themselves and their grassroots
from below. Many African mass movements that organisations. Genuine support and solidarity from
participated in the liberation struggle were demobilised elsewhere should be welcome, but must not lead to a
shortly after independence. This paved the way for new form of imperial intervention.
the centralisation of power within the inner circles of
ruling parties and the marginalisation of the majority. Mainstreaming gender is an urgent matter
What is required now is political “conscientisation” The achievement of substantive gender equality is still a
and mobilisation among working people at grassroots long way off in Southern Africa, yet it remains a central
level. Such mobilisation must be based on a clear part of the fight against poverty and inequality. Despite
understanding of the current socio-economic crisis the substantial achievements made in some countries,
and the possibilities for an alternative development like Namibia and South Africa in terms of legal equality,
strategy. Grassroots mobilisation has to include a and despite the progress made in terms of women’s
constant engagement with the State to transform it representation in politics, patriarchial cultures and
into an ethical, responsible and developmental state. attitudes are still widespread. A particular focus of all
Participatory grassroots democracy is likely to also policies must, therefore, be to lift women out of poverty
lead to far greater accountability regarding the use and to liberate them from the trappings of inequality.
of funds earmarked to fight poverty. Currently, the Poverty and inequality have an extremely severe and
poor pay a high price for corruption and have little disproportionate effect and impact on African women.
control over administrators, donors and “consultants” Because their work in the home and the work place
that benefit substantially from funds that are meant tends to be undervalued, African women are expected
to alleviate poverty. Conferences held in 5-Star to work longer hours than men do, in low-wage jobs,
hotels to discuss poverty in Africa are a case in point. under poor conditions. Moreover, women suffer under
Empowering the poor to play an active part in designing patriarchal traditions and customs and their prospects
and implementing programmes that are meant to for improving their quality of life remain poor because of
benefit them would certainly go a long way in reducing limited access to resources, such as education, facilities,
corruption and mismanagement. land and loans. Treating gender-based inequalities as
side issues that will be “automatically” resolved over
Dealing with threats by the “Empire” time will merely perpetuate the problem. Thus, the
There is no doubt that external, global players such achievement of substantive gender equality must be
as the G8, the IMF, World Bank and World Trade central to all policies and programmes. Gender equality
Organisation (WTO) have major influence over can only be achieved if the structural impediments that
6 A basic income grant is an essential measure to tackle poverty

limit the economic independence and self-sufficiency particular, have shown that unconditional, rights-based
of women are addressed. grants not only reduce poverty significantly, but also
Endogenously-driven development is a precondition pave the way for sustainable economic activities and
for overcoming inequality for meaningful grassroots empowerment. Given the
In the economic arena, a more endogenously-driven resources available in the region, such grants are not
economic strategy that overcomes the constraints of only promising, but also viable and affordable.
the current enclave economies is a pre-condition for
overcoming mass unemployment, pervasive poverty and A luta continua...
inequality. A new economic approach must create linkages The state is a contested political terrain and serves
between economic sectors and break the continued particular interests, currently mostly corporate ones.
marginalisation experienced by workers and operators Redressing inequalities can, therefore, not be achieved
in the informal and communal subsistence economies. without a mass movement that is dedicated to a sustained
Systematic support and protection for emerging struggle, including education, consultations, debate,
industries, coupled with a strategic establishment of and action. The famous slogan of the Mozambican
value chains in the region are the immediate alternatives revolutionaries “A luta continua” captures the crucial
to the current dictates of corporate-driven globalisation. point that the struggle for social and economic justice
This will require a selective delinking from some of the is a daily business, a continuous process. This holds
globalisation processes that currently hold Southern certainly true for Southern Africa.
Africa states hostage to corporate interests and relegate
millions of people to the fringes of the economy.
A particularly important aspect is the strategic
utilisation of natural resources, such as, oil in Angola,
diamonds in Namibia and Zimbabwe and the vast
mineral wealth of South Africa. The value of these
natural resources, if properly directed into the social
economy, can have a huge impact in terms of supporting
social protection programmes, local wealth creation
and poverty eradication. The manner in which natural
resources are currently governed, extracted and
exploited, have tended to retain the same patterns of
access, distribution and consumption. In addition, the
nature of the national budgets confirms the absence of
substantial pro-poor budget approaches and that states
in the region currently do not utilise the opportunity
to use natural resources as an instrument to empower
the poor.

A Basic Income Grant is an essential measure to tackle poverty

As an immediate intervention to tackle poverty and to
free millions of people in the region from its debilitating
and dehumanising effects, the introduction of an
unconditional basic income grant seems an appropriate
and essential measure to take. The experiences with
social grants in Malawi, South Africa and Namibia have
shown the importance of social protection programmes
to tackle poverty in the short-term. The results of the
Basic Income Grant (BIG) pilot project in Namibia, in