Vulnerabilities and policy priorities for South Africa’s COVID-19 third wave

The Institute for Economic Justice (IEJ) reports that South Africa's economy continued to contract and shed jobs during the COVID-19 third wave in June 2021, with unemployment reaching record highs of 32.6% (43.2% expanded). The report highlights severe hardships, including 39% of households running out of food money in January 2021, and criticizes the slow rollout of the government's R500 billion rescue package, of which only one-third had materialized by February 2021. The IEJ identifies specific vulnerabilities in the construction, manufacturing, tourism, and informal sectors, as well as disproportionate impacts on women and children. It recommends a comprehensive set of policy priorities, including grant-based business support, extended wage subsidies, increased public infrastructure spending, and the reinstatement of the Social Relief of Distress (SRD) grant.

• South Africa's labor market reached record unemployment levels in 2021, with the rate hitting 32.6% (or 43.2% under the expanded definition) and further increasing in the second quarter to 34.4% and 44.4% respectively.
• The government's R500 billion (US$ 1.05 billion) rescue package announced in April 2020 suffered from implementation failures, with only one-third of the funds materialized as of February 2021.
• Severe food insecurity affected South African households in early 2021, with 39% of households running out of money for food in January and 17% experiencing weekly hunger.
• Specific economic sectors and demographics were disproportionately affected by the pandemic; construction, manufacturing, wholesale, retail, and private households were hit hard, while women faced increased hunger, gender-based violence, and unpaid care work.

APA

Institute for Economic Justice (n.d.). Vulnerabilities and policy priorities for South Africa’s COVID-19 third wave. https://iej.org.za/wp-content/uploads/2021/09/Spotlight_2021_web_specialContribution_2_5.pdf

Chicago

Institute for Economic Justice. Vulnerabilities and policy priorities for South Africa’s COVID-19 third wave. n.d. https://iej.org.za/wp-content/uploads/2021/09/Spotlight_2021_web_specialContribution_2_5.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Vulnerabilities and policy priorities for South Africa’s COVID-19 third wave |url=https://iej.org.za/wp-content/uploads/2021/09/Spotlight_2021_web_specialContribution_2_5.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjusticendvulnerabilities, author = {{Institute for Economic Justice}}, title = {{Vulnerabilities and policy priorities for South Africa’s COVID-19 third wave}}, institution = {Institute for Economic Justice}, url = {https://iej.org.za/wp-content/uploads/2021/09/Spotlight_2021_web_specialContribution_2_5.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }