AN INFRASTRUCTURE FUNDING MODEL (IFM) FOR PROJECT DELIVERY IN NON-URBAN/RURAL AREAS OF SOUTH AFRICA
Keywords:
Infrastructure Development, Rural Development, Economic Growth, Funding Model, Project DeliveryAbstract
Rapid urbanisation has been identified as a key factor contributing to rising urban
congestion and poverty levels. The global goals of eliminating poverty and hunger are
unlikely to be achieved if the trend of rural-urban migration continues unabated. One of
the primary causes of this migration is the lack of adequate infrastructure in rural areas.
Literature consistently highlights the essential role of infrastructure in fostering
economic growth and improving citizens’ welfare. Therefore, it is critical for
governments to prioritize rural infrastructure development to curb rapid urbanisation.
Developed countries have successfully implemented strategies to address this issue.
For example, the UK’s co-lending model focuses on rural development lending, while
China uses redistributive tools like tax systems and lump sum transfers to enhance
rural infrastructure. However, many developing countries, including South Africa,
continue to prioritize infrastructure spending in urban areas, neglecting rural
communities and worsening the disparity. This study adopts a mixed methods
approach, targeting three provinces for comprehensive data collection. It incorporates
the resource allocation theory and situational awareness theory to analyse
infrastructure funding mechanisms. The qualitative component includes 10 interviews
per province, while the quantitative segment involves distributing 60 surveys at local,
provincial, and district levels. Regression analysis will be applied to assess the extent
to which Infrastructure Funding Models (IFM) are utilized and to develop a more
effective model for equitable infrastructure funding. The aim is to create a resourceful
funding framework that addresses rural development needs and ultimately mitigates
the adverse effects of rapid urbanisation.
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