This drought has had major socio-economic effects particularly on the large impoverished rural population as well as on some urban areas where supplied water services have broken down in several cases. Economic Impacts of Droughts. 1. Infrastructure changes on the farm. Other cities like Pretoria, Durban, and Gauteng are also facing a severe shortage of water. Other cities like Pretoria, Durban, and Gauteng are also facing a severe shortage of water. Cape Town has been in drought for three years. South Africa. Here is a list of some of the effects of drought on the economy: 1. During the year 1992 and 1993, undoubtedly one of the most widespread droughts of the last 45 years, maize had to be imported to South Africa. Economist Dr Iraj Abedian says government knew about the drought 17 years ago but did nothing and now the economy is suffering. Economic impacts are those impacts of drought that cost people (or businesses) money. Drought, is one of the disasters that has recently affected most countries including South Africa. South Africa in midst of ‘epic drought’ At least 2.7 million households affected in worst drought to hit the country since the 1980s, government officials say. The South African newspapers are full of reports related to violent crimes. Governments across the South African region implemented measures to mitigate the impact of the drought. Programs were implemented such as increased stockpiling of food, water restrictions, and water conservation campaigns. However, the impacts of the drought made clear that the situation was overwhelming [1]. Cape Town has been in drought for three years. 2008). South Africa has terminated a national state of disaster that was declared to mitigate the effects of a severe drought… South Africa. The Impact of the Drought on South African Wildlife. The decision to declassify drought was announced on July 16, after the government re-examined the severity of drought conditions. . There are several mechanisms If a farmer's water supply is too low, the farmer may have to spend more money on irrigation or to drill new wells. Box 1: Impact of Drought on the Distribution of Income link Box 2: Impact of Drought on the Manufacturing Sector in Zimbabwe link Box 3: Modeling the Economic Impact of the 1992 Drought in South Africa link Box 4: Lake Kariba and the 1991−92 Drought link The Impact of Drought on Sub−Saharan African Economies Boxes 3 The Western Cape Water Supply System relies almost entirely on rainfall, which is captured and stored in six major dams situated in mountainous areas.The dams are recharged by rain falling in the catchment areas, largely during the cooler winter months of May to August, and dam levels decline during the dry summer months of Nov… Johannesburg - The worst drought in the country in more than 20 years could knock 0.5 percent off South Africa’s gross domestic product (GDP) … As such, a 2% loss from the province means a 0.26% reduction of the national total. follow Bloomberg Africa on Twitter. It is an issue that is commonly faced by all citizens, regardless of what their economic status is. The BFAP estimates that there will be a 3,76% decrease in the agricultural gross domestic product (GDP) from 2015 to 2016. These are some of the headlines dominating the front pages of regional newspapers as the worst drought in southern Africa takes its toll on industries. Governments across the South African region implemented measures to mitigate the impact of the drought. The province contributes about 21 per cent of South Africa's agricultural output, and accounts for 45-60 per cent of agricultural exports. However, the impacts of the drought made clear that the situation was overwhelming [1]. In the province more than R5 billion was lost to the economy, largely due to the drought. At the present moment, water is being rationed by government agencies across most of South Africa. Agricultural Losses . It is likely that the water crisis will have a short- to medium-term impact on the national economy. This, coupled with the lowest rainfall countrywide since 1904, has resulted in seven of our nine provinces officially being declared disaster areas. Currently (2015/16), South Africa is experiencing the worst drought in over 100 years, which has resulted in significant effects on agriculture, with eight of the nine provinces being declared disaster areas. The economic impacts of drought are realized from monetary and business losses incurred during droughts by governments, businesses, families, and at the individual level. During the year 1992 and 1993, undoubtedly one of the most widespread droughts of the last 45 years, maize had to be imported to South Africa. Over 15 per cent of natural disaster damages and losses are caused by drought. There are more than 7,000 commercial grain farmers, according to industry association Grain SA. Extreme drought events in southern Africa are the result of a number of atmospheric circulation interactions (Tyson, 1986; Lindesay, 1998) with some droughts and periods of reduced rainfall, for example, connected with ENSO events. Water crisis: Cape Town drought to have huge impact on SA’s economy. The current drought is the effect of a sustained below-average monthly rainfall series since 2015, which intensified in the last wet season (April to September 2017). Drought is a major disaster in South Africa in terms of total economic loss and number of people affected. At the present moment, water is being rationed by government agencies across most of South Africa. The most serious impact, other than dwindling water supplies, is the effect on staple crops and, ultimately, commercial crops. If reduced access to water translates into reduced electric capacity, the economic effects are multiplied. From 2015 to 2017 South Africa’s financial grew by minor 1.1% average per annum, with the farming part growing at a rate of under 0.5%. Agriculture is the backbone of Africa’s economy and accounts for the majority of livelihoods across the continent. The South African wine industry is bracing itself for the smallest harvest in more than a decade as the drought and water shortages in the Western Cape threatens farms and wineries that employ thousands of seasonal workers. From 2015 to 2017 South Africa’s financial grew by minor 1.1% average per annum, with the farming part growing at a rate of under 0.5%. If you thought being a miner was tough, try being a farmer. Drought can result in lower water levels in reservoirs, lakes and ponds, as well as reduced streamflow in rivers. Understanding drought risk in South Africa. of people. Jaco Minnaar, chairman of Grain SA, an industry body that represents grain producers, said … The United Nations is reporting that prolonged droughts in southern Africa have led to food shortages, which will impact 45 million people. Moreover, consecutivedroughts com… South Africa has a dual agriculture economy consisting of a well-developed commercial sector and smallholder, often subsistence, farming. This matters for the country as a whole because the Western Cape contributes 22% to … economic impacts, as experienced by smallholder farmers in Mopani between June 2015 and February 2016. Jobs: The Western Cape has the biggest agricultural workforce in South Africa – nearly a quarter of the country’s farm workers are employed in the region. To this end, there has been growing concern about the impact droughts have and will have on the tourist destinations in sub-Saharan Africa and beyond. This is largely due to The Economic Impact of Cape Town’s Water Crisis. Assessing the Socio-Economic Impact of Drought in Goedgevonden Village, Ventersdorp Local Municipality in North West Province, South Africa Siphiwe Caleni Submitted in fulfilment of the requirements in respect of the Master’s degree Master of Disaster Management at the Disaster Management Training and Education Centre for Africa in the For many of the already impoverished, food insecure orvulnerable population groups in the Limpopo River Basin, one severe drought, orseries of consecutive droughts, may result in the loss of their traditionallivelihood system, and thus result in further deprivation. Seven of the ten industries contracted in the fourth quarter. The Western Cape economy equates to 13% of South Africa’s GDP in total. Western Cape Province in South Africa is going through a severe drought, affecting in particular the highly populated urban area of Cape Town and its water supply. by Jodi Lucas June 4, 2018. In order to understand the impact of the current drought it is essential to start off with a clear assessment of the importance of agriculture to the regional economy of the Western Cape, and more broadly the rest of South Africa. Yet high costs, combined with low availability, mean only 20% of the country's commercial grain farmers have drought insurance, according to the SAIA document. These are some of the examples of economic effects … There are more than 7,000 commercial grain farmers, according to industry association Grain SA. If the region's weather patterns are disrupted enough to cause drought, the lack of rainfall and eventual loss of moisture from soil often results in a noteworthy decline in Southern Africa's agricultural production; the resulting detrimental economic conditions lead to social unrest and a decline in the level of regional food security. Commonly faced by all citizens, regardless of what their economic status is of reports related to crimes. 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