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Subject

Water and food security outlook for Southern Africa.

Significance

Southern Africa is facing the worst drought in a decade. Over the next six months an estimated 27.4 million people will be food insecure and one in ten will rely on food handouts. The drought is also affecting core economic activity, threatening water availability in cities and power supplies in states reliant on hydroelectricity.

Impacts

Lake Malawi's lower water levels will reduce hydroelectricity production, driving communities to seek alternative fuels, including wood.

Zimbabwe may be able to fund water and power projects with new debt next year, but only if it makes progress on servicing its large arrears.

Water shortages in South Africa could force major towns and cities to introduce water restrictions, following Johannesburg's example.

Glencore's job-cutting plans in Zambia will face resistance from the government and unions, possibly resulting in nationalisation threats.

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