Land Ownership Will Reduce Inequality in Southern Africa- World Bank

A March 2022 World Bank report revealed that Botswana, Eswatini, Lesotho, Namibia, and South Africa, represented the world’s most unequal region, with Namibia and South Africa distinctly topping the global poverty database.

According to the report, Southern African Customs Union (SACU) member countries have a consumption inequality of more than 40 percent higher than the averages for both Sub-Saharan Africa and upper-middle-income countries.This is in spite of having redistributive spending in the world, particularly on education and health, inequality remains extremely high, said the World Bank country director for SACU countries Marie Francoise Marie-Nelly.Other factors such as the sharp inequality in land ownership were also found to contribute to perpetuating the historically high levels of income inequality.

“This report shows that lack of access to key productive assets such as skills and land, is slowing progress towards a more equitable income distribution,” said Pierella Paci, World Bank Practice Manager of the Poverty and Equity Global Practice for Eastern and Southern Africa. “Improving access and availability of private sector jobs and access to productive assets such as land will help equalize opportunities”.Inequality of opportunity determined by location, gender, age, parental background, and when the race is included also contributes to poverty and income gaps in the SACU member countries.

It is believed that more investment in human capital development will also alleviate extreme poverty and inequality in this region. “Levelling the playing field at birth through more inclusive delivery of quality education, health, and basic services is critical to reducing inequality in the region,” said Marie Francoise Marie-Nelly.

High wealth inequality limits intergenerational economic mobility, making consumption inequality persistent over time. In the labor market, having post-secondary or tertiary education is key to both accessing jobs, and obtaining better wages once employed.