Zeph Nhleko – Chief Economist at DBSA
“Going beyond the Infrastructure Funding Gap – A South African Perspective,” a comprehensive joint study by the World Bank and the Development Bank of Southern Africa (DBSA) was released today. It provides important insights into the sizeable infrastructure and related spending needed to close South Africa’s Sustainable Development Goal (SDG) gap for water and sanitation, transport and education sectors. The study highlights the necessity of making strategic investments that are informed by relevant goals and measurements.
The Sustainable Development Goals (SDGs) were adopted by the UN in 2015 to address global issues such as the elimination of poverty, preservation of the environment, and advancement of peace and prosperity by 2030. South Africa has committed to these objectives in its National Development Plan Vision 2030. In spite of advancements, South Africa is ranked 113th out of 161 nations in the Sustainable Development Report 2022 for SDG performance.
The study estimates that from 2022 to 2030, South Africa would need to set aside between R4.8 trillion and R6.2 trillion ($254 billion and $329 billion) for basic education, basic transportation, water, and sanitation, and Technical and Vocational Education and Training (TVET). For the associated SDGs to be achieved, this investment is essential. These numbers indicate that, on average, 8.7% to 11.2% of GDP need to be spent annually. The study highlights the significance of efficient expenditure as opposed to just raising budgets.
The study’s key findings include the identification of the factors that drive infrastructure costs, the consequences for policy, and the sector-specific expenditure demands. The results highlight how better infrastructure management and quality are required to guarantee SDG fulfillment.
“Infrastructure development is both a goal and the means necessary to help achieve the 2030 Sustainable Development Goals. This creative study adds to the corpus of evidence-based information at a country-level that assists policy makers and financiers determine where expenditures should be put by outlining the infrastructure development gaps of each sector,” says Zeph Nhleko – Chief Economist at DBSA.
Resilient infrastructure in the areas of water and sanitation, transportation, and education is necessary to achieve the SDGs. This includes robust water and sanitation services, dependable transportation infrastructure, and top-notch educational institutions. The study emphasises the necessity for investment supported by competent management, maintenance, and good governance by highlighting the important influence that infrastructure, service quality and management have on achieving the Sustainable Development Goals.
Download the full report below…