This Survey was prepared in the Economics Department by Jens-Christian Høj and Christine Lewis under the supervision of Andreas Wörgötter. The draft has benefited from valuable background research by Theresa Alton and Boipuso Modise, seconded from the South African National Treasury. Research assistance was provided by Corinne Chanteloup and secretarial assistance by Heloise Wickramanayake and Mercedes Burgos. The draft also benefited from valuable background research by Reinhard Schiel and Murray Leibbrandt from SALDRU at the University of Cape Town, Lawrence Edwards from the University of Cape Town, Neil Rankin from Stellenbosch University, Chris Darroll from SBP and Zavareh Rustomjee. Falilou Fall contributed to the finalisation of the draft for publication.The Economic Survey of South Africa was discussed by the Economic Development and Review Committee on 27 May 2015, with participation of representatives of the South African government and representatives of Brazil and the Czech Republic as lead speakers.This Survey is published under the responsibility of the Secretary-General of the OECD.The previous Economic Survey of South Africa was issued in March 2013.

Since 1994 South Africa has made great progress in reducing absolute poverty by rolling out social grants for pensioners, the disabled and children. Access to education, housing, water, electricity and other services has been greatly broadened. As a result, well-being has increased substantially. A sound macroeconomic framework with a stable fiscal position, inflation targeting, a floating exchange rate and largely unimpeded international capital flows underpinned this progress and has earned South Africa the confidence of financial markets.

Since the early 1990s, South Africa has gone through a democratic transition with the development of broad-based consultation in the policy formation process, a sound macroeconomic policy framework, and strong institutions to protect the rule of the law. Social progress has been achieved with redistributive grants and wide access to key public services, notably education, health, housing, water, sanitation and electricity. These services account for 60% of government spending (Statistics South Africa, 2014).

This annex summarises key recommendations made in previous Surveys and actions taken since the OECD Economic Survey of South Africa published in March 2013.