The pursuit of inclusive economic growth and poverty remains a priority in South Africa, despite the current economic downfall and the rise of unemployment from COVID-19. It is vital that we continue to find ways to facilitate inclusive economic growth. By doing so, we will be working towards ensuring that millions of South Africans can be lifted out of poverty.
What does inclusive economic growth mean?
The Organisation for Economic Cooperation and Development describes inclusive economic growth as a fair and equal distribution of economic resources to all communities within a country. In the South African context, inclusive economic growth requires a shift in trajectory to ensure that it benefits every citizen in all communities equally.
How can inclusive economic growth be achieved?
It’s important to note that there are many fundamental stumbling blocks which worsen inequalities rather than alleviate them. This includes the previously mentioned rise of unemployment, gender-discrimination, access to education, access to adequate, or the lack of, critical infrastructures such as transportation, healthcare, electricity, water and more.
All of these challenges create a volatile environment for development and growth to be achieved and sustained. However, there are various approaches which can be employed to tackle issues pertaining to inclusive economic growth. These can be identified through robust dialogues, rigorous research, a carefully designed inclusive growth plan and implementation strategies as well as sustainability procedures.
The government needs to address these in national and regional procedural activities. But for this kind of work to be more impactful and meaningful, it requires a collective approach where everyone gets involved, from private organisations to small businesses.
In the end, progress in this area will benefit the most vulnerable parts of the country as well as spread across various sectors. Success will boost the economy and its overall functions.
DBSA’s role in inclusive economic growth
The Development Bank of Southern Africa (DBSA) has a multitudinous role to play when it comes to assisting the government with inclusive economic growth. As project infrastructure specialists, the Bank is in a unique position to procure and deliver funding for large scale projects in the developmental infrastructure in South Africa, and the rest of the African continent.
The sectors include:
- Information and communication technologies
- Water and sanitation
- Energy
- Transport, air, shipping, rail, ports, and border posts
The acquisition of infrastructure investments in these sectors helps us to effectively facilitate planning, integration and implementation of sustainable development solutions to previously disadvantaged communities. The goal here is to improve the quality of life of people through the development of social infrastructure and support economic growth with infrastructure.
In our journey to achieving sustained growth in developmental impact, we follow strict objectives. These objectives enable us to integrate infrastructure solutions across the value chain and maintain profitability, and operational efficiency, to encourage growth in equity and fund developmental activities. By using innovative strategies to access infrastructure, these opportunities will assist in expanding the initiatives for economic transformation.
Final thoughts
Inclusive economic growth is possible in an environment where related factors are able to coexist and interconnect with a common purpose. Identifying the weaknesses in policies and activities that play a role in the development and growth of a country’s economy is a crucial step required to tackle inequalities.
And fortunately, DBSA’s mandate in infrastructure development is designed to facilitate such solutions in all their lifecycle stages.