Row rect Shape Decorative svg added to bottom GLOBAL DEVELOPMENT Sustainable Social Funding Absa | Corporate and Investment Banking > Insights and Events > Sustainable Social Funding SHARE While South Africa falls under the classification of a middle-income country, it grapples with profound social issues stemming from sluggish economic growth, political instability and a growing wealth gap. In comparison with other African nations, South Africa appears to allocate a relatively substantial portion of its budget to fundamental services such as healthcare, education and safety. However, these allocations do not necessarily translate into favourable outcomes. South Africa and the world are currently witnessing an escalation of global geopolitical events that demand a more responsive humanitarian sector. Climate-related disasters are on the rise, affecting not only underdeveloped countries but also nations that find themselves grappling with the consequences of these disasters, including the displacement of families, children and the erosion of livelihoods. Simultaneously, ongoing conflicts between nations necessitate a robust humanitarian response to address the devastating impact on families, children and livelihoods. Moreover, the profound consequences of the COVID-19 pandemic have led to setbacks in countries' efforts to improve the quality of life for their citizens. The crux of the problem lies in the fact that as humanitarian challenges continue to surge, they compound the pre-existing unmet societal needs. Resources available to bridge these gaps remain limited, leaving funders and humanitarian organisations struggling to cope with the constraints of both human and financial resources. Being a middle-income country with a relatively thriving private sector, South Africa's development and humanitarian organisations face a pressing challenge: they must explore opportunities within their borders and their own organisations to secure funding and human resources to address local needs. At the Recent GDO Roundtable event there were key take-outs from the valuable discussions: Long term commitment from Donors and Governments will provide a higher impact Rural areas, Townships and informal settlement are the areas that need greater investment Repeat funders is key, and flexibility from donors in providing unrestricted funding is vital The non-profit sector should work together, each leveraging on your own strengths Addressing unemployment and supporting women and youth Collaboration and partnerships are key https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Related Articles RISK MANAGEMENT The business playbook for a stronger rand Chris Paizis, Head of Client FX and International Banking at Absa CIB, outlines the options for corporate treasurers when the rand strengthens against the US dollar. Read more RISK MANAGEMENT How Finance Can Help Build More Integrated African Supply Chains If one were to speak to African suppliers who trade across borders, many would say that doing business within the continent can feel riskier than exporting beyond it. Especially for small and medium-sized enterprises (SMEs), information on counterparties is not always easy to obtain, regional currencies can be volatile and difficult to hedge, forward markets offer little depth, and access to affordable finance is often limited at precisely the moment it is needed most. Read more RISK MANAGEMENT What Bidvest’s Eurobond Tells Us About the Maturation of SA’s Debt Capital Market The international high-yield bond market functions as one of the largest and most technically evolved sources of corporate funding in the global financial system. Read more
