In this edition of Business Day Spotlight, we talk about the performance of economies in the SA Development Community (Sadc) and East Africa regions.

Host Mudiwa Gavaza is joined by Jacques Nel, head of macroeconomic research for Africa at NKC African Economics, to chat about the issues.

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Starting with news from some of SA’s close neighbours, Nel says the muted performance of the local economy has had a negative effect on the growth prospects of the region. As an economy that anchors the Sadc region, Nel explains that the fortunes of SA’s economy have a direct effect on neighbouring economies. A drop or stagnation in local economic performance, therefore, weighs on the region.

Heading into lockdown, SA was already expected to grow at less than 1%, seeing a huge contraction brought about by Covid-19 and subsequent lockdowns. Nel explains how neighbouring countries have performed, in the light of this apparent reliance on SA, focusing specifically on Botswana, Namibia and Mozambique.

Shifting to East Africa, Nel says the region has been resilient, having entered lockdowns with good growth prospects. For now, he expects that momentum to continue with faster growth projected for the region.

The discussion focuses on the economic performance of countries in the Sadc region, specifically Botswana, Namibia and Mozambique. It then looks at growth in East Africa, progress made in terms of vaccinations and an outlook for the two regions.