Major challenges

The main challenges for DFID in South Africa are:

Tackling health and HIV and AIDS | Promoting growth and reducing unemployment | Reducing inequality

Tackling health and HIV and AIDS

South Africa has the highest burden of AIDS in the world. More than 5.7 million people in South Africa are living with HIV - an estimated 1,000 -1,500 people are infected with HIV and 800 to 1,000 die from AIDS–related conditions every day.

Over 50% of people with HIV also have TB. South Africa is the fourth highest TB burden country globally and the highest rate of TB in Africa.

Epidemics of drug-resistant strains are increasing. There is a 95% mortality rate among people with extremely drug-resistant strains because of the links to HIV.  These challenges place an enormous burden on health systems and staff.

The UK started a 5-year programme of support in January 2010 to help the South African government to reorient South Africa’s policy and programmes on health and AIDS. 

Other DFID initiatives supporting health and AIDS in South Africa include:

• Soul City’s innovative “edutainment” (educational + entertainment) programme using TV, radio and print media  to raise awareness and change negative behaviour on a range of health and social issues such as HIV, TB, and sexual violence. It reaches 70% of South Africa’s population and has higher brand recognition than Coca Cola.
• The Rapid Response Health Fund, directly contributing to maintaining antiretroviral therapy (ART) services in South Africa's nine provinces.

ART was particularly problematic in the Free State province where no new patients could be started due to a lack of drugs. With UK support, DFID helped gain 25,000 units drugs in the Free State province where no new patients were able access ART services due to a lack of drugs

Promoting growth and reducing unemployment

South Africa accounts for roughly 40% of sub-Saharan Africa’s GDP, and almost 70% of GDP in the Southern Africa region. South Africa’s growth and economic stability is therefore critical to the development of the region.

South Africa’s Growth Strategy sets targets to accelerate growth (to 6%); halve unemployment (from 30% in 2003 to 15%); and halve poverty numbers by 2014.

The global economic crisis has had a negative impact on growth and jobs and South Africa is currently in recession. The annual growth rate decreased from an average 5% in 2007, to 3% in 2008.

Unemployment is at 24% (2008), with major job losses in manufacturing and mining sectors in 2009.

DFID supports growth and job creation through an Employment Creation Fund, also supported by the European Commission and launched in September 2009. The fund will be used to assist South Africa in developing policies and programmes to increase growth, job creation, skills and investment.

Other growth and employment initiatives supported by DFID include:

• Support to the government’s expanded public works programme (EPWP) which helped create 403,000 jobs to December 2008. The programme is expected to create more than four million jobs by 2014.
• The Making Financial Markets Work for the Poor Programme (FinMark) supported South African banks to implement the Financial Sector Charter, ensuring that over 3.3 million more South Africans now have access to low cost bank accounts.
• The Making Commodity Markets Work for the Poor (ComMark) programme, assisting 9,800 subsistence farmers to produce enough food for their families and to sell excess produce into local markets to help lift them above the poverty line.
• The Regional Standards Programme (RSP) helped small growers in South Africa’s Limpopo Province to be certified as producers by major European retailers resulting in a tenfold increase in orange production to 4,500 tonnes and a £120,000 increase in income.

Reducing inequality

Inequality in South Africa remains among the highest in the world and is a major block on progress to reduce chronic poverty.

About 43% of South Africans live on less than $2 a day and 26% live below the international poverty line of $1.25 a day.

There are 13 million social grant recipients, of which eight million are children. DFID support has helped to deliver grants to the poorest and most vulnerable.

DFID supports research and programmes aimed at addressing rural and urban land reform in South Africa, including the redistribution of land to improve food security or poverty.