COVID-19 will cause South Africa’s overall GDP to decline by 7.9% in 2020 and not fully recover until 2024, leading to major setbacks in addressing poverty, unemployment and inequality. Economic sectors most negatively impacted by the COVID-19 outbreak include textiles, education services, catering and accommodations (including tourism), beverages, tobacco, glass products, and footwear. Small and medium enterprises are most negatively impacted. Populations hit especially hard are already-impoverished female-headed households, persons with only primary education, persons without social assistance, black populations, and heads of households who have been pushed from permanent to informal employment. About 54% of such households entering informal employment are likely to fall into poverty, as well. Income inequality is likely to increase due to the skewed negative impacts on already-disadvantaged populations.