SERIOUS THREAT

18th March 2016 By: Darlene Creamer

SERIOUS THREAT

South Africa’s prevailing drought is exacting a toll on the economy, on jobs and on food prices. Employment in agriculture decreased by 37 000 in the fourth quarter of last year, while wilting agricultural production is contributing to South Africa’s weak growth forecast. But food price increases are a real worry, as is the effect that surging prices will have on poor households. The World Bank has already warned that the drought has pushed an additional 50 000 people in South Africa below the poverty line of R501 a month.