South Africa is feeling the impact of the escalating violence between Israel and Gaza and the release of the Census 2022 results on its economy and markets. The rand, the country’s currency, dropped on Monday as investors sought safer assets amid the turmoil in the Middle East. The census data, which showed a population growth of nearly 10 million in a decade, also revealed the challenges of unemployment, poverty, and inequality the country faces.
The conflict between Israel and Gaza erupted on 7 October 2023, when Hamas and other Palestinian militant groups launched a massive rocket barrage and ground invasion into Israel, killing and kidnapping hundreds of civilians and soldiers. Israel responded with airstrikes and shelling, targeting Hamas infrastructure and leaders in the densely populated Gaza Strip. The death toll has risen to over 1,000 on both sides, with no sign of a ceasefire.
The violence has sparked global condemnation and calls for an end to the hostilities. Several African countries, such as Algeria, Egypt, and Morocco, have expressed solidarity with the Palestinians and denounced Israel’s actions. Others, such as Kenya, Nigeria, and South Africa, have urged both parties to respect international law and human rights. South Africa has also offered to mediate between Israel and Hamas, as it did in the past.
The unrest in the Middle East has rattled the financial markets, as investors fear a disruption of oil supplies and wider regional instability. The rand, which is sensitive to global risk sentiment, fell by 0.6% against the US dollar on Monday. The Johannesburg Stock Exchange also closed flat as traders awaited the outcome of the Census 2022.
The Census 2022 was the first digital census in South Africa’s history, conducted online, by telephone, and face-to-face. It was delayed by the COVID-19 pandemic and faced challenges such as riots, floods, and cyberattacks. The results, which were released on Tuesday by Statistics South Africa (Stats SA), showed that the country’s population grew from 52 million in 2011 to 62 million in 2022.
The census data also provided insights into the socio-economic conditions of South Africans, such as education, health, housing, and income. According to Stats SA, unemployment increased from 24.9% in 2011 to 32.6% in 2022, while the poverty rate rose from 36.4% to 40.3%. The inequality gap also widened, as measured by the Gini coefficient, which increased from 0.65 to 0.68.
The government and other stakeholders will use the census data to plan and implement policies and programs that address the needs and challenges of the population. President Cyril Ramaphosa commended Stats SA for its remarkable endeavor amidst difficulties and said that the census was a “vital instrument for development.” He also called on all South Africans to work together to build a more prosperous and inclusive society.
Source: Business Insider Africa
