This region is marked by the dominant influence of South Africa which is the strongest African economy.  South Africa is the single largest beneficiary of the total Bank Group approvals to the region.

Over the past few years the situation in Zimbabwe, particularly the exponential inflation rate in the country has been a concern to the SADC Heads of State.

Cumulative Bank Group lending to the region is fairly more evenly distributed than other sub regions, with agriculture which is the largest beneficiary, receiving about 16.0 % of the total and communications 4. 4%.

Countries, total land area and population

Southern Africa is made up of the following 12 countries: Angola, Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe.

The total land area of the countries is 6.574 million sq km. or 21.7% of the area of the continent, while the total population is in 2006 was 149.3 million or 16.1% of that of the continent.

The GNP per capita of the countries range from US$ 160 for Malawi to US$ 5260 for Mauritius, the third highest on the continent after those of Seychelles and Libya. The following five countries in the region with relatively high GNP per capita incomes are eligible for AfDB resources: Botswana, Mauritius, Namibia, South Africa and Swaziland.

GDP/GNP per capita and Bank Group country categories in the region

The other seven countries can only access ADF concessionary resources with limited AfDB funds for private sector and enclave projects. Although Zimbabwe’s GNP per capita in 2006 was barely US$ 340 below those of Lesotho (US$ 960) and Zambia (US$ 490), Zimbabwe has been a blend country with access to funds from both AfDB and ADF window.

Cumulative Bank Group lending in the region as at the end of 2007

Bank Group operations started in Southern Africa in 1969, two years later than most other regions. From 1969 to 2007, cumulative Bank Group commitments to Southern Africa amounted to UA 6.54 billion (US$10.3 billion) or 15.7% of the total loan and grant approvals to all regional member countries. Of this amount, as high as UA 3.1 billion (US$ 4.9 billion) or 47.6% was from ADF concessionary resources.

Summary of country share of  Bank Group lending to the sub-region

The largest beneficiaries in order of importance included Mozambique  (approximately US$1.7 billion), followed South Africa (US$1.3 billion), Zimbabwe (US$1.2 billion) Madagascar (US$ 1.1 billion), Zambia (US$1.1 billion) and Malawi (US$1.0 billion). 

Sectoral distribution of Bank Group lending to the region

Sectoral distribution of Bank Group operations in Southern Africa shows that Transport received the highest loan and grant approvals with UA 1.11 billion (USS$ 1.75 billion) or 16. 9% , followed by agriculture (15.8%);  finance (12.8%),multisector (12.7%); social sector (11.6%); power supply (10.9%); industry ( 7.7%); water and sanitation (7.1%); and communications ( 4.4% ) Like in some other sub regions infrastructure as a whole comprising transport, power supply, water and sanitation received 39.3% of the cumulative commitments to Southern Africa.