Southern Africa’s Economic Pulse – Mid-2025 Overview

The Southern Africa’s economic performance in 2025 reflects a region navigating through both recovery and resilience amid persistent headwinds.

While several countries such as Botswana, Mozambique and Zambia are currently showing signs of positive growth, while others continue to face challenges stemming from climate shocks, inflationary pressures and currency volatility.

Economic growth across the region is largely being supported by extractive industries, energy developments and increased regional trade flows.

Botswana and Mozambique are leading the pack in fostering stability and investment inflows, particularly in diamonds and LNG respectively.

Zambia’s recent currency gains have improved investor sentiment, though structural vulnerabilities still remain.

South Africa continues to grapple with sluggish growth due to power constraints and fiscal pressures.

However, food security remains a pressing issue due to erratic rainfall patterns, while high inflation particularly in Malawi and Zimbabwe, as these continues to erode household incomes.

Currency depreciations across the region have compounded the cost of living and increased the burden on import-dependent economies.

As the region enters the second half of 2025, there is a critical need to accelerate policy reforms, stabilize exchange markets, support productive sectors like agriculture and manufacturing, and deepen regional cooperation.

The future of Southern Africa lies in building resilient economies that can weather global shocks while delivering inclusive growth at home.