VULNERABILITIES AND POLICY PRIORITIES FOR SOUTH AFRICA’S COVID-19 THIRD WAVE

The document analyzes the devastating impact of COVID-19 on South Africa's economy, noting a 7% contraction in 2020 and a record unemployment rate of 32.6% in Q1 2021. It highlights that initial relief measures, such as the R500 billion rescue package, were poorly implemented, with only one-third materializing by February 2021. The brief details severe job losses in construction, trade, and manufacturing, and notes that women and informal workers were disproportionately affected. It specifically identifies a 'second pandemic' of gender-based violence and femicide (GBV-F), with annual costs estimated between R28.4 billion and R42.4 billion. To mitigate these crises, the IEJ recommends replacing the Loan Guarantee Scheme with grants, extending the TERS wage support, reinstating the SRD grant at R585 per month, and increasing public infrastructure spending.

• South Africa's economy contracted by 7% in 2020, and the unemployment rate reached a record high of 32.6% (expanded definition 43.2%) in the first quarter of 2021.
• The government's R500 billion rescue package suffered from significant implementation failures; by February 2021, only one-third of the funds had materialized.
• The Loan Guarantee Scheme (LGS) is considered a failure, with only R18.35 billion in loans made as of 19 June 2021, representing approximately 10% of the planned R200 billion value.
• Employment losses were most severe in trade (341,000 jobs), construction (265,000), manufacturing (208,000), and private households (189,000).
• Women in the agricultural sector were more vulnerable to job losses than men, with 59,000 jobs lost for women compared to 13,000 for men, partly due to a higher prevalence of seasonal work among women.
• The tourism sector suffered a R15 billion loss in accommodation income between 2019 and 2020, driven by a 71% drop in foreign arrivals.
• Informal workers experienced higher employment losses (14%) than formal sector workers (6%) in the first quarter of 2021 compared to 2020.
• Child hunger has increased due to the closure of schools and the National Schools Nutrition Programme; in 2020, 60% of the school year was lost for grades 1 to 5.
• Food insecurity remains high, with 39% of surveyed households running out of food in February/March 2021 and 17% experiencing household hunger.
• Gender-based violence and femicide (GBV-F) is described as a 'second pandemic' with estimated annual costs to South Africa between R28.4 billion and R42.4 billion.

APA

Institute for Economic Justice (2021). VULNERABILITIES AND POLICY PRIORITIES FOR SOUTH AFRICA’S COVID-19 THIRD WAVE. https://iej.org.za/wp-content/uploads/2026/02/IEJ-COVID-19-policy-brief-series-3_5.pdf

Chicago

Institute for Economic Justice. VULNERABILITIES AND POLICY PRIORITIES FOR SOUTH AFRICA’S COVID-19 THIRD WAVE. 2021. https://iej.org.za/wp-content/uploads/2026/02/IEJ-COVID-19-policy-brief-series-3_5.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=VULNERABILITIES AND POLICY PRIORITIES FOR SOUTH AFRICA’S COVID-19 THIRD WAVE |date=1 July 2021 |url=https://iej.org.za/wp-content/uploads/2026/02/IEJ-COVID-19-policy-brief-series-3_5.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2021vulnerabilities, author = {{Institute for Economic Justice}}, title = {{VULNERABILITIES AND POLICY PRIORITIES FOR SOUTH AFRICA’S COVID-19 THIRD WAVE}}, institution = {Institute for Economic Justice}, year = {2021}, month = jul, url = {https://iej.org.za/wp-content/uploads/2026/02/IEJ-COVID-19-policy-brief-series-3_5.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }