Policy Brief 4 - Enhancing the Role of Public Entities in Rural Development
Public entities – state-owned companies (SOCs) and development finance institutes (DFIs) – play an instrumental role in implementing developmental policies and helping to drive South Africa’s infrastructure-led growth. They have the resources to change the development path of rural areas. A study by the Financial and Fiscal Commission (the Commission) assessed the extent to which public entities contribute to rural development. The study found that SOCs do not have a specific rural focus, unless such a focus is driven by their parent/sector department, and that investments by DFIs in rural areas is minimal and declining. To enhance the rural development role of public entities, in order to align with government’s infrastructure-led growth strategy, the
Commission recommends that a single champion for rural finance and development be designated, to guide and coordinate investments by DFIs in rural areas.
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