South Africa has made remarkable progress since democracy replaced apartheid ten years ago.  New opportunities in education, health, business, and improved services such as water, housing and power are now reaching millions of South Africans.  But serious gaps still afflict many areas, such as economic analysis and capacity development. South Africa has one of the largest income disparities in the world.  More than 50% of the population, mostly black, lives in deep poverty.  South Africa’s economy is the strongest on the continent, but insufficient to reduce rising unemployment and poverty.  There’s a stark shortage of qualified black economists who are needed to help shape economic policy in democratic South Africa.

The main participants in USAID’s programs are those who were excluded from their country’s economic development under apartheid.  USAID programs help South Africans to improve their ability to analyze economic problems and implement sound economic principles.  USAID assists government and business to establish constructive policies.  Parliamentarians and other officials who make decisions about budgets and finance are being trained in economics.  Some of the country’s universities are being helped to improve economics courses.  Improving economic analysis in these ways is necessary to develop good economic policy.  These positive steps will help lower poverty by creating more jobs and increase international trading opportunities. 

Strengthen economic growth and analysis

USAID is increasing South Africa’s expertise in a variety of economics fields.  Immediate attention is given to emerging markets, restructuring state enterprises, promoting public-private partnerships and strengthening tax and competition policies.  USAID is also training legislators to investigate government misspending. 

USAID’s Mandela Economics Scholarship Program, named after the country’s first democratically elected president, improves the availability and quality of economics education.  The program has funded more than 100 black South Africans to earn post-graduate degrees in economics in the U.S. and South Africa.  These graduates are practicing their expertise in important positions in South Africa.  

Promote economic growth through tax and budget policies

USAID is training up to 50 officials to design, implement and monitor South Africa’s new programs to generate jobs and reduce poverty. Parliamentarians are studying economics courses that USAID has facilitated and will soon earn diplomas, improving their expertise in budget and finance debates and allocations.   

South Africa’s assistance is helping to improve financial sector regulations.  USAID has created the Southern African Tax Institute that works with Harvard University’s International Tax Programs and South African universities to train tax officials from eastern and southern Africa. 

Implement new land tenure policy in traditional homelands

USAID is helping South Africa’s Department of Land Affairs to address the important issue of land tenure.  Equitable legislation is being developed to protect the rights of workers and tenants on commercial land and enable women to own traditional land.  USAID helps first-time land-owners to understand their rights and will further help them to access finance and develop skills to make their property productive.

USAID funds local research on the extent and nature of land problems faced by tenants and agriculture workers.  USAID also assists South Africans to learn ways of resolving disputes outside of traditional structures such as over-crowded courts.

Promote privatization and partnerships between government and business

USAID helps South Africa to structure partnerships between government and business that deliver cost effective and efficient programs and services.  Specific projects involve a rapid-rail transportation system between Johannesburg and Pretoria, and a new campus for the Department of Trade and Industry.  Both ventures will create scores of new jobs for small businesses and generate ongoing economic activities. 

Other Programs: USAID continues to spearhead research about HIV/AIDS.  The economic impact of AIDS study led by USAID has influenced important decisions about dealing with the epidemic.  Business owners and workers have used the information to adopt workplace policies and practices to prevent and deal with AIDS. 

USAID is supporting the South African government’s efforts to analyze the impact of rolling out anti-retroviral treatment and to reduce the cost of treatment.