South Africa

Illicit financial flows (IFFs) such as tax evasion are a major policy challenge for developing and emerging economies, in particular as the COVID-19 pandemic has drained domestic resources. This report presents results from a joint project between the OECD and the National Treasury of South Africa, which assesses tax compliance and IFFs in South Africa. The report provides an overview of macroeconomic, tax and fiscal developments in South Africa since the global financial crisis. It discusses the concepts of IFFs, how they relate to the South African context and provides an overview of South Africa’s participation in multilateral initiatives to combat tax evasion. It also provides a quantitative analysis of tax compliance and IFFs over time amid a variety of tax transparency initiatives implemented in South Africa. Finally, the report examines the effectiveness of tax transparency initiatives such as voluntary disclosure programmes, and looks into income and wealth characteristics of applicants to these programmes.

Blockchain is mainstreaming, but the number of blockchain for development use-cases with proven success beyond the pilot stage remain relatively few. This paper outlines key blockchain concepts and implications in order to help policymakers reach realistic conclusions when considering its use. The paper surveys the broad landscape of blockchain for development to identify where the technology can optimise development impact and minimise harm. It subsequently critically examines four successful applications, including the World Food Programme’s Building Blocks, Oxfam’s UnBlocked Cash project, KfW’s TruBudget and Seso Global. As part of the on-going work co-ordinated by the OECD’s Blockchain Policy Centre, this paper asserts that post-COVID-19, Development Assistance Committee (DAC) donors and their development partners have a unique opportunity to shape blockchain’s implementation.

This report examines governance frameworks to counter illicit trade. It looks at the adequacy and effectiveness of sanctions and penalties applicable, the steps parties engaged in illicit trade take to lower the risk of detection - for example through small shipments - and the use of free trade zones as hubs for managing trade in illicit products. It also identifies gaps in enforcement that may need to be addressed. The report provides an overview of selected enforcement issues in BRICS economies (Brazil, China, India, the Russian Federation and South Africa).

With 22% of the national population (11.2 million inhabitants), the Gauteng city-region is the largest and richest region in South Africa, contributing to one-third of national GDP. The area encompasses a series of connected cities, including Johannesburg and the national capital of Tshwane (formerly Pretoria), that function as a single, integrated region. Gauteng has been South Africa’s growth engine: for every additional 1% growth in population in the province, 1.6% is added to its contribution to national growth, implying higher productivity than in other parts of the country. Nevertheless, the city-region’s growth potential is constrained by deep socio-economic challenges, including high unemployment (26.9%) and low productivity growth. Its rapid demographic and economic development has also reinforced the spatial segregation instituted under apartheid. Against the backdrop of South Africa’s achievements since the fall of apartheid, this Review evaluates measures to position economic development policy and to confront economic inequality in Gauteng. The issues of adequate housing as a catalyst of economic development and a vehicle for socioeconomic integration, transport mobility and public service delivery are examined in detail. The Review also assesses the economic growth potential of the manufacturing and green sectors, as well as governance issues, focussing on the potential of intergovernmental collaboration in advancing a cross-cutting regional approach for Gauteng.