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The widespread economic benefits of infrastructure development

Infrastructure development plays a key role in ensuring fast economic growth and alleviating poverty in South Africa. South Africa has a good core infrastructure network such as a transport system, power, communications network, sewage and water. However, while there is a good core network, previously disadvantaged areas and rural areas don’t have the same adequate infrastructure as developed communities due to high social inequality. The core difference between these communities affects the citizens who reside there but also the economic development of South Africa. 

Below, we will explore how various sectors can benefit from infrastructure development. 

The energy sector

In modern society, energy is vital as it plays a role in most human activities and helps improve the standard of living. Energy makes life easier and is needed for sectors to run smoothly. Most rural areas don't have adequate energy infrastructure, which hinders productivity within the areas and limits any contribution to the economy. This is why the DBSA is focused on creating an inclusive and integrated rural economy through energy infrastructure. To do this, we plan to develop and finance infrastructure projects that will offer everyone in South Africa access to affordable, reliable, modern and, more importantly, sustainable energy. This will help power the country and ensure economic growth in both rural and urban areas.

Water and sanitation sector

Water is a basic need for human survival. While a large number of South Africans have access to safe, clean drinking water through pipe systems, there is a large number of citizens who live in informal settlements and rural areas who don’t have access to potable water. Investing in water and sanitation is an effective way of improving the economy. It will allow communities to live healthily, improve the health sector, and improve productivity in the country. Water affects the health sector and has a ripple effect on education, construction, manufacturing, and more. With integrated infrastructure planning, various sectors can benefit and thrive, ensuring economic growth beneficial for all citizens. The DBSA understands the importance of access to clean, safe, quality water. This is why we work to ensure that water is available for citizens and facilitate sustainable management of water and sanitation for South Africans. 

The transport sector

Transportation is fundamental for a booming economy. It helps transport goods and services and enables people to access work, schools and recreational activities, which also play a role in the economy. Without any improvement, the transport system will hinder continuous economic growth, especially in rural areas. A well-developed transport system will ensure the sustainable development of the economy throughout South Africa. At the DBSA, we invest in transport systems that will ensure all citizens experience safe, efficient and sustainable systems in their communities, pushing economic activity and increasing job opportunities. 

ICT sector

When it comes to infrastructure spending, ICT is an important addition that must be prioritised. The digital space continues to improve and grow, and for South Africa to compete and trade effectively with other countries, there needs to be adequate infrastructure development. It will also help create jobs, improve efficiency within the economy and boost productivity in all sectors. The DBSA knows the impact of infrastructure development on economic growth, particularly with ICT, which is why we assist in guiding businesses in modernising their infrastructure and giving support for business innovation.

Social sector

Health, housing and education play a prominent role in the economy and improving quality of life. While the social sector is improving, it needs infrastructure development for human development in South Africa. This will ensure quality education for citizens, which will help improve the unemployment rate, alleviate poverty and ensure economic growth. Infrastructure improvement in the health system will ensure doctors and nurses aren’t overworked, efficient equipment, and quality healthcare for all citizens. With the help of DBSA, citizens can benefit from alleviated poverty, job creation, proper housing conditions and quality health care. 

Final thoughts

Infrastructure development is key in developing South Africa and its economy. Our main objective at DBSA is to assist in ensuring impactful development finance solutions for South Africa and Africa as a whole, which will help improve the quality of health care and a healthy economy. To do that, we need project funding from the public and private sector in helping create a better Africa.