Promoting growth and economic transformation in Southern Africa: The challenges and implications of declining commodity prices

Heavy reliance on primary commodities has rendered many of the economies of Southern Africa vulnerable to fluctuations in international markets as shown by the case of the region’s mineral resource and agricultural sectors. A key observation indicated in the present study is that the high dependence of resource-rich Southern African economies on commodities makes them vulnerable to commodity price fluctuations, which has resulted in the unexpected contraction of public resources and, in certain instances, created negative spill over effects into the rest of the economy.