Minister Pravin Gordhan’s mid-term budget speech last week made large commitments to infrastructure spending – R300bn for transport and logistics, R240bn for energy and R137bn for water and sanitation. In times of economic distress, governments tend to invest heavily in infrastructure, to promote productivity, increase trade, reduce the cost of doing business and create jobs.
Typically, financing for such infrastructure comes from multilateral development banks. These banks play an important role in reducing Africa’s infrastructure financing deficit, projected to be an enormous $100 billion per annum over the coming decade.
The recent establishment of the New Development Bank (NDB), set up by the BRICS group of countries, brings to the market a new source of development finance. Considering that South Africa is providing $2 billion of tax payers’ monies to the new Bank, South Africans have a vested interest in the sustainability of the bank to safeguard its capital, but equally to promote economic development
A new study from the GEG Africa programme (a partnership between SAIIA, DNA Economics and Tutwa Consulting) has highlighted how established multilateral development banks such as the AfDB are increasingly struggling to find countries to borrow from them, partly due to their own inefficiencies.
- What does the new research show about the reasons Africa not getting the financing it urgently needs for critical infrastructure?
- How can the New Development Bank chart a way forward without repeating the same mistakes of its forbearers?
Expertise and resources available
The author of this new research, Mr Cyril Prinsloo are available for comment and interviews. Contact Ms Fortunate Xaba to arrange interviews or comment, on +27 (0)11 339-2021 or email@example.com.
The research papers and related analysis are available from the GEG Africa website:
About Global Economic Governance Africa
The Global Economic Governance Africa project is a partnership between SAIIA, DNA Economics and Tutwa Consulting. Funded by the UK's Department for International Development (DFID), its focus is on strengthening the influence of groupings within and outside South Africa working for pro-poor outcomes through the institutions of global governance. Read more on www.gegafrica.org.
For more information or to arrange for interviews please contact:
SAIIA Communications Assistant
Cell: +27 (0) 81 086 6303
Office: +27 (0) 11 339 2021 ext 122
GEGAfrica has been funded by UK aid from the UK government; however the views expressed do not necessarily reflect the UK government’s official policies.