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2. From Paper to Practice: Enhancing Integrated Development Plans to Improve Governance
- Author:
- Stuart Morrison and Pranish Desai
- Publication Date:
- 03-2024
- Content Type:
- Policy Brief
- Institution:
- Good Governance Africa (GGA)
- Abstract:
- Planning, Monitoring and Evaluation (PME) systems play an important role in ensuring that South Africa’s municipalities are able to effectively fulfil their core mandate of service delivery. One central component of this system is the Integrated Development Plan (IDP), a strategic framework used for several functions, including guiding key priorities and providing a roadmap for effectively delivering public services. However, even though most municipalities consistently submit IDPs, the quality of service delivery, especially amongst municipalities that have Water Services Authority responsibilities, is uneven. This raises the questions around which factors are more influential in determining effective service provision, and why they are lacking in dozens of municipalities. Using Good Governance Africa’s 2024 Governance Performance Index (GPI), this policy briefing provides a range of stakeholders with consolidated insights into how these issues can be addressed.
- Topic:
- Development, Governance, Services, Planning, Monitoring, and and Evaluation (PME)
- Political Geography:
- Africa and South Africa
3. Reversing the resource curse: Advancing good natural resource governance for inclusive growth and sustainable development in Southern Africa
- Author:
- Sikhululekile Mashingaidze and Stephen Buchanan-Clarke
- Publication Date:
- 02-2024
- Content Type:
- Special Report
- Institution:
- Good Governance Africa (GGA)
- Abstract:
- The International Energy Agency’s Medium-Term Gas Outlook in late 2023 notes that “Africa accounted for nearly 40% of new natural gas discoveries globally in the past decade, mainly in Mozambique, Mauritania, Senegal and Tanzania. However, socio-political instability and security issues make Africa a high-risk environment for the gas industry. This results in a gap between the potential and the actual gas production projects under development.” Nonetheless, the Agency forecasts natural gas production growth of 10% (higher than current levels) by 2026. It had only grown by 2.5% from 2011 to 2021, and currently accounts for roughly 6% of global production.1 Asian and Middle Eastern markets’ demand will continue2 while African governments will bet on Liquefied Natural Gas (LNG). In the longer term, it is critical to phase out fossil fuels due to their exacerbation of global warming and health and environmental risks. Given the imperative for lowercarbon growth trajectories, demand for oil, gas, and coal will likely peak in 2024. Governments and mining investors’ negotiations and contracts should safeguard local populations through ecologically sensitive, responsible mining. Communities’ voices are critical to decision-making from project inception to ensure revenues usher in broad-based growth and increased domestic energy security. In 2022, Good Governance Africa (GGA), with support from the Southern Africa Trust (SAT), explored critical issues surrounding LNG exploration and development in Southern Africa in the context of climate change.3 This intelligence report is a consolidation of key lessons from these LNG projects’ impact on local communities in Mozambique’s Cabo Delgado; South Africa’s Eastern Cape, and Zimbabwe’s Cabora Bassa Basin. Together, these three cases illustrate both the promise and perils of LNG mining in Africa.
- Topic:
- Development, Natural Resources, Economic Growth, Sustainability, and Inclusion
- Political Geography:
- Africa and South Africa
4. Decentralising the Just Energy Transition: The role of the private sector in supporting municipalities
- Author:
- Mmabatho Mongae and Nnaemeka Ohamadike
- Publication Date:
- 03-2024
- Content Type:
- Special Report
- Institution:
- Good Governance Africa (GGA)
- Abstract:
- With nearly 86% of its carbon dioxide (CO2) coming from coal, South Africa is one of the world’s most coaldependent countries.1 Additionally, it produces nearly a quarter of the continent’s total carbon emissions.2 Its economy is highly dependent on agriculture and mineral extraction, which are energy-intensive. Importantly, South Africa is subject to climate variability and change.3 The effects are exacerbated by dysfunctional municipalities’ limited ability to build climate resilience systems and ensure robust disaster risk management. With local government administrative instability, service delivery failures, and financial mismanagement highlighted by Good Governance Africa’s (GGA) Governance Performance Index (GPI), societal stakeholders bear the brunt of dysfunction, particularly amidst escalating climate-induced natural disasters, which further strain government resources. As such, the fight against climate change requires a coordinated response from government, the private sector, and citizens. Presently, citizens do not identify the private sector as a key stakeholder in mitigating climate change. This suggests that the private sector does not have a visible presence in the fight against climate change, thereby presenting the private sector with an opportunity to support the decentralisation of the just energy transition. These efforts can also form part of attempts by the private sector to mainstream Environmental, Social, and Corporate Governance (ESG) best practices.
- Topic:
- Climate Change, Governance, Economy, Carbon Emissions, and Energy Transition
- Political Geography:
- Africa and South Africa
5. South Africa’s Cyber Strategy Under Ramaphosa: Limited Progress, Low Priority
- Author:
- Joe Devanny and Russell Buchan
- Publication Date:
- 01-2024
- Content Type:
- Working Paper
- Institution:
- Carnegie Endowment for International Peace
- Abstract:
- During the decades of apartheid, South Africa was an international pariah. Since the country transitioned to majority rule in 1994, the African National Congress (ANC) has dominated politics, and the ANC has itself transitioned from a national liberation movement to a party of government. Domestically, South African cyber strategy should be seen as part of the ANC’s wider political challenge of trying to deliver economic growth, development, and prosperity. Over thirty years, the ANC has struggled to deliver on this agenda in a profoundly unequal society with infrastructure and institutions that have weakened particularly over the past fifteen years. Alongside confronting domestic challenges, the ANC has also tried to reshape South Africa’s global role. This was perhaps most visible under its first president, Nelson Mandela (1994–1999), but it was arguably pursued most systematically under Mandela’s successor, Thabo Mbeki (1999–2008). This reorientation of South Africa in the world was an ambitious and complex project, the foundations of which were the country’s leading role in its region and continent as well as its ties within the wider Global South. The project entailed tensions between the progressive promotion of human rights and freedoms, on the one hand, and the cultivation of instrumental relations with authoritarian and repressive states, on the other. These tensions continue to affect South African foreign policy, including its cyber diplomacy. South Africa identifies cybersecurity as a key national priority and has to this end adopted a national cybersecurity strategy and established a military Cyber Command. The reality, however, is that other issues have been consistently ranked above cybersecurity, such as addressing corruption, poverty, racial and social injustice, and the HIV/AIDS epidemic. Cybersecurity has therefore not been seen as a high priority by successive South African governments. This has left Cyber Command underresourced and unmotivated. This deprioritization means that South Africa is unlikely to emerge as a prominent military or intelligence cyber power anytime soon. The wider lack of national prioritization will also make it harder for so-called like-minded states—which are bound together by a mutual respect for democracy, human rights, and the rule of law—to form an effective partnership with South Africa on the topic of cybersecurity. South Africa’s approach to international cyber governance debates has been cautious and noncommittal, reflecting cyber diplomacy’s relatively low priority in its national strategy. What position South Africa takes in cyber debates is, however, of keen interest to the international community. An important question is whether South Africa will support the existing multistakeholder approach to cyber governance that is championed by like-minded states or join China and Russia in their efforts to recalibrate this approach and push for greater state control over cyberspace. Indeed, under President Cyril Ramaphosa, South Africa has not yet published its national position explaining how international law applies to cyberspace. A related question is whether South Africa will join like-minded states in elaborating how existing international law applies to cyberspace or side with China and Russia to campaign for new, bespoke international law (for example, treaties) to regulate this domain. When examining these questions, it is important to recognize the context of the ANC’s long-standing ties with Russia, both during its thirty years in government and in its previous decades struggling for national liberation. This is helpful for understanding South Africa’s interactions with Brazil, Russia, India, and China (which form the BRICS bloc with South Africa) and forecasting its future positions in cyber governance debates. For example, South Africa has been reluctant to unambiguously condemn Russia’s invasion of Ukraine in 2022, and it appears to have supported Moscow by covertly supplying it with weapons. In the longer term, South Africa’s positions in cyber diplomacy debates will likely be shaped by trends in both domestic politics—such as the ANC’s waning electoral performance—and the success of digital development. In this context, it is perhaps advisable for like-minded states, such as the United States, to focus on cyber capacity-building assistance and ensure that these efforts play into the wider development agenda in South Africa.
- Topic:
- Corruption, Poverty, Science and Technology, Cybersecurity, Democracy, and Racial Justice
- Political Geography:
- Africa, Iran, and South Africa
6. South Africa as a Leading Regional Power in Africa? An Analysis of the Implementation of the African Union, Auda-Nepad and Agenda 2063
- Author:
- Murilo Gomes da Costa
- Publication Date:
- 12-2024
- Content Type:
- Journal Article
- Journal:
- Revista Brasileira de Política Internacional (RBPI)
- Institution:
- Instituto Brasileiro de Relações Internacionais (IBRI)
- Abstract:
- The article analyzes South Africa’s role in the African Union’s Agenda 2063. It examines South Africa’s position as a leading regional power post-apartheid. The study contends that Pretoria has developed a strategy towards its region. The argument is supported by a descriptive analysis of the implementation of Auda-Nepad and South Africa’s efforts to broaden the thematic scope of the AU. The results show that South Africa’s strategy as a leading regional power in Africa has been achieved through Pretoria’s role as a paymaster in both the AU and Auda-Nepad, alongside the development of its own Agenda 2063 projects.
- Topic:
- Foreign Policy, African Union, and Regional Power
- Political Geography:
- Africa and South Africa
7. A Palestinian Gandhi or an Israeli de Gaulle? Why the Context of Violence Matters
- Author:
- Sharif Elmusa
- Publication Date:
- 01-2024
- Content Type:
- Journal Article
- Journal:
- Cairo Review of Global Affairs
- Institution:
- School of Global Affairs and Public Policy, American University in Cairo
- Abstract:
- Questioning why there hasn’t been a Palestinian Gandhi or Mandela ignores the history and context in which Palestinian resistance occurs, especially the abiding violence visited on the Palestinians since 1917
- Topic:
- Colonialism, Violence, BDS, Mahmoud Abbas, Israeli–Palestinian Conflict, Nelson Mandela, and Charles de Gaulle
- Political Geography:
- Middle East, India, Israel, South Africa, Palestine, and West Bank
8. Genocide on the Docket at the Hague
- Author:
- Omar Auf
- Publication Date:
- 01-2024
- Content Type:
- Journal Article
- Journal:
- Cairo Review of Global Affairs
- Institution:
- School of Global Affairs and Public Policy, American University in Cairo
- Abstract:
- International law is a tool for both oppression and emancipation, says AUC law professor Thomas Skouteris in this Q&A as he breaks down the intricacies of the ICJ’s January 26 order for provisional measures in South Africa v. Israel, and elucidates the present and future of international law.
- Topic:
- Genocide, International Law, International Court of Justice (ICJ), and 2023 Gaza War
- Political Geography:
- Israel, South Africa, Palestine, Gaza, and The Hague
9. Watts happening to work? The labour market effects of South Africa’s electricity crisis
- Author:
- Haroon Bhorat and Timothy Köhler
- Publication Date:
- 04-2024
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- Frequent electricity outages threaten to impede the benefits of expanded access achieved by many developing countries in recent decades. A large literature documents these negative effects, however almost none consider labour market effects. This paper merges labour force survey microdata with high-frequency electricity supply and demand data to provide the first estimates of the relationships between outages and labour market outcomes in South Africa, a country characterized by frequent, severe outages referred to as load shedding. Exploiting temporal variation in outage incidence and intensity, we find that load shedding is associated with significantly lower employment rates, working hours, and earnings on average. Employment appears more sensitive relative to intensive margin outcomes, threatening job creation and preservation efforts. These negative relationships, however, are not evident for low levels of load shedding, but their strength markedly increases with load shedding intensity. We document further heterogeneity by firm size and industry, highlighting the vulnerability of jobs in manufacturing. Overall, our findings suggest that the South African labour market is largely insensitive to relatively low levels of load shedding; however, high levels appear especially costly.
- Topic:
- Employment, Economy, Electricity, and Labor Market
- Political Geography:
- Africa and South Africa
10. Market power and merger control in South Africa
- Author:
- C. Friedrich Kreuser, Michael Kilumelume, and Rulof Burger
- Publication Date:
- 05-2024
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- We estimate structural, materials, and labour markups for the South African economy at the three-digit industry level for 2012–19. The fall in structural labour and materials markups found for the numerical majority of industries are generally isolated to smaller industries, with industries accounting for a higher proportion of sales generally experiencing smaller downward shifts. We show that materials-based markups are increasing over this period. Upward markup pressure in structural and labour markups are primarily driven by compositional shifts of surviving firms, while materials markup growth is driven by the average firm in a given sector. We show that merger intensity is positively related to structural markup growth, with a 1% increase in the proportion of cumulative mergers over 2013–18 being related to around a 0.27% increase in structural markup growth over the period from 2012 to 2019. We find that large vertical mergers are positively related to structural and materials markup growth while being negatively related to labour markup growth. Large horizontal mergers generally increase labour and structural markups.
- Topic:
- Markets, Economy, Industry, and Mergers and Acquisitions
- Political Geography:
- Africa and South Africa
11. How Has South Africa’s Membership of BRICS Intensified Uneven and Combined Development in the Country and Beyond?
- Author:
- Sinan Baran
- Publication Date:
- 06-2024
- Content Type:
- Journal Article
- Journal:
- Uluslararasi Iliskiler
- Institution:
- International Relations Council of Turkey (UİK-IRCT)
- Abstract:
- The recent African scramble has resulted in uneven and combined development (UCD) in Sub-Saharan Africa (SSA) throughout the 21st century due to unequal exchange. South Africa plays a sub-imperial role in this scramble in SSA. It both exploits and is exploited. The mining industry in South Africa has attracted interest from colonial powers, English-speaking businesses, and foreign investors, making it a highly lucrative sector. Furthermore, most black South Africans have been employed in the mining industry since the late 19th century. Over the past 25 years, the African National Congress government has utilised the mining industry to achieve economic transformation through black economic empowerment policies. This study proposes that the mining sector in South Africa is responsible for the ongoing UCD, despite receiving new investments and empowerment policies. South Africa’s inclusion in BRICS has broadened its range of international partners beyond its traditional Western or African counterparts. However, South Africa’s decision to join the BRICS group in 2011 has not yet yielded the expected transformation in the country’s economy and growth. As a result, it is uncertain whether South Africa’s BRICS membership has addressed the country’s persistent problem of UCD. This study argues that South Africa’s BRICS membership has exacerbated UCD in the country. This study proposes that Trotsky’s UCD analytical framework is useful for analysing South Africa’s policy choice to join BRICS, which strengthens its sub-imperial role.
- Topic:
- International Relations, Development, Mining, Industry, BRICS, Economic Transformation, Unequal Exchange, Sub-imperialism, and Transnational Capital
- Political Geography:
- Africa and South Africa
12. Economic Forced Migration in Southern Africa: The Case of Malawi
- Author:
- Cobbener Wilfred Sungani and Pascal Newbourne Mwale
- Publication Date:
- 03-2024
- Content Type:
- Working Paper
- Institution:
- Ìrìnkèrindò: a Journal of African Migration
- Abstract:
- As with other world regions, free market capitalism or the neoliberal system has caused numerous individuals and families to lose access to viable income-generating bases in Southern Africa. This places them in a socio-economically abject and precarious position. Resource-poor and unemployed Southern Africans have for a long time been forced to migrate to less unstable economies within the region. South Africa continues to be the most attractive destination for most poor and destitute Southern Africans. These people are called ‘economic refugees’ in the dominant literature. Hitherto, the plight of the Malawian ‘economic refugee’ in South Africa has not attracted much scholarly attention. Drawing on the interdisciplinary methodologies of African social philosophy and African social history, we present the case of Malawian economic refugees in South Africa. Drawing upon ideas derived from Immanuel Kant’s analysis in Perpetual Peace (1917), this paper argues for the promotion of the spirit of fraternity between South Africans and Malawian migrants
- Topic:
- Immanuel Kant, Forced Migration, Economic Refugee, and Fraternity
- Political Geography:
- Africa, South Africa, and Malawi
13. Investigating the Vulnerability of Foreign Migrants Businesses in Durban, South Africa, During the COVID-19 Pandemic
- Author:
- Ayobami Popoola, Hangwelani Magidimisha-Chipingu, and Lovemore Chipungu
- Publication Date:
- 03-2024
- Content Type:
- Working Paper
- Institution:
- Ìrìnkèrindò: a Journal of African Migration
- Abstract:
- There is lack of empirical evidence on the vulnerability of immigrant businesses in Durban, South Africa, during the COVID-19 pandemic. To investigate this, data was collected during the pandemic to evaluate the vulnerability of immigrant businesses. The research adopted the quantitative approach, with a sample of fifty-three (53) Durban city immigrants small-scale business owners, to examine their business vulnerability. A linear regression model and correlation were used to analyse the data. The findings show that business insecurity increased immigrants' business vulnerability. Thus, without underestimating the COVID-19 pandemic effect, it was evident that urban insecurity resulting in xenophobic tendencies and incidences is the main factor/determinant/predictor that increases the vulnerability of foreign businesses. The study suggests that the documentation and analysis of foreign immigrants' experiences during the COVID-19 pandemic can contribute to understanding the effects and consequences for immigrants across the globe. The study contributes to debates on immigrants' inclusion and seeks to fill the gap in the literature on immigrant business experience and survival in host communities.
- Topic:
- Migration, Immigrants, COVID-19, and Business Vulnerability
- Political Geography:
- Africa and South Africa
14. Accelerating GBVF Response Through Community-Led Platforms – Lessons from the Scorecard of the Localisation of the National Strategic Plan on Gender-Based Violence and Femicide
- Author:
- Gugu Resha and Cathy-Ann Potgieter
- Publication Date:
- 03-2024
- Content Type:
- Policy Brief
- Institution:
- Centre for the Study of Violence and Reconciliation (CSVR)
- Abstract:
- his policy brief highlights the findings from the scorecard on the localisation of the NSP-GBVF, emphasising the areas of priority for all state and community-based actors as they continue to implement to objectives of the policy. This brief is intended to be used by organisations and community leaders working to strengthen efforts against GBVF, service providers providing protection, prevention and support to victims of GBV, stewards of safety and gender equality in public institutions, police representatives, CPF coordinators and business leaders seeking to make positive contribution to the efforts against GBVF towards gender justice and a violence-free South Africa.
- Topic:
- Crime, Gender Based Violence, Violence, Legislation, Domestic Violence, Femicide, and Community Initiatives
- Political Geography:
- Africa and South Africa
15. Empowering young voices: Using action research to combat xenophobia through children’s initiatives
- Author:
- Ruth Nyamadzawo
- Publication Date:
- 04-2024
- Content Type:
- Journal Article
- Journal:
- Conflict Trends
- Institution:
- The African Centre for the Constructive Resolution of Disputes (ACCORD)
- Abstract:
- Since 1994, South Africa has seen an influx of refugees, asylum seekers, skilled professionals, and socio-economic migrants seeking security and better opportunities. However, this has led to challenges, including xenophobic violence. Despite efforts by civic organisations and the government, the problem persists. Therefore, there is a need for a mindset of peace to address the recurring violence. This article is concerned with exploring the problem of recurring xenophobia in South Africa by reviewing the approaches that have been followed in response to this phenomenon and proposing an alternative response of involving children in peacebuilding measures. It highlights the importance of empowering children and helping them develop the capacity to become agents of change, and raising them as peacebuilders in the communities where they reside. Underlining the role of educating for peace in transforming human society, it is believed that peace workshops could contribute to preparing young generations for sustaining positive relationships with those considered the ‘other,’ and thus consolidating peace in South Africa.
- Topic:
- Children, Discrimination, Youth, Xenophobia, Empowerment, Stigmatization, and Peacebuilding
- Political Geography:
- Africa and South Africa
16. Maximising the impact of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)
- Author:
- Vincent Obisie-Orlu
- Publication Date:
- 12-2023
- Content Type:
- Policy Brief
- Institution:
- Good Governance Africa (GGA)
- Abstract:
- This briefing assesses South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). It acknowledges programme achievements while addressing challenges, including delays to the procurement process and financial issues facing REIPPPP projects. It underscores the necessity for electricity industry reform and more cohesive energy policies. It proposes changes to how investment decisions are made, and collaboration occurs alongside the REIPPPP process to promote private sector investment, develop localisation within the REIPPPP and reduce supply chain vulnerabilities. Lastly, it provides a thorough analysis to inform recommendations that will maximise REIPPPP’s role in realising South Africa’s energy objectives.
- Topic:
- Reform, Finance, Investment, Electricity, Renewable Energy, and Procurement
- Political Geography:
- Africa and South Africa
17. Enhancing political accountability in South Africa
- Author:
- Pranish Desai and Mxolisi Zondo
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- Good Governance Africa (GGA)
- Abstract:
- Enshrined in the founding provisions of South Africa’s democratic constitution is the commitment to a “multi-party system of democratic government, to ensure accountability, responsiveness and openness”.1 Today, South Africa is entering a new form of multiparty governance through the emergence of coalition governments in municipalities across the country. Following the Constitutional Court’s June 2020 decision to strike down parts of the Electoral Act of 1998, there have also been critical discussions about whether our national and provincial electoral framework of proportional representation fosters the accountability and responsiveness to which our constitution aspires.2 Both the nascent era of widespread coalition governance and the debate over electoral reform occur while the confidence that citizens have in our democracy is depreciating. In order to revive South Africans’ belief in our democratic system, we must renew that system to improve accountability. Many of the policy proposals that Good Governance Africa (GGA) considers in this briefing already exist,3 but we evaluate them in specific relation to how they can deepen political accountability in South Africa. The upshot is that a shift in approach from our institutions, political parties, civil society and citizens themselves is required.
- Topic:
- Governance, Elections, Accountability, Social Contract, and Coalition
- Political Geography:
- Africa and South Africa
18. The state of the renewable energy independent power producer procurement programme: Where to from here?
- Author:
- Busisipho Siyobi
- Publication Date:
- 12-2023
- Content Type:
- Special Report
- Institution:
- Good Governance Africa (GGA)
- Abstract:
- Minister of Electricity, Kgosientsho Ramokgopa, recently briefed South Africa on the progress of the Energy Action Plan and the challenges associated with its implementation. Minister Ramokgopa further remarked on the positive socio-economic impact that the Renewable Energy Independent Power Procurement Programme (REIPPPP) has had on the industry and economy. Over R300 billion has been attracted for infrastructure investment and over 120 independent power producers have been selected as preferred bidders. These success factors indicate great potential for an optimal energy mix, led by renewable energy sources, to be attained. They also highlight opportunities for more private-sector investment. For this potential to be fully maximised, programme design, programme management and market dynamics will be critical to factor in. This report assesses the abovementioned overarching categories and illustrates mechanisms that will be integral to facilitating increased private sector investment into grid-connected renewable energy generation. This will yield efficient management of REIPPPP and further enable improved economic growth and sustainable development.
- Topic:
- Development, Governance, Renewable Energy, Sustainability, and Energy
- Political Geography:
- Africa and South Africa
19. Gold in Ghana: A Story of Unbalanced Exchange
- Author:
- Léonce Ndikumana and William Godfred Cantah
- Publication Date:
- 09-2023
- Content Type:
- Working Paper
- Institution:
- Political Economy Research Institute (PERI), University of Massachusetts Amherst
- Abstract:
- his paper presents the historical and institutional context of the development of the gold sector in Ghana, which sets the stage for examining the contribution of the sector to the economy and its exposure to capital flight. The analysis sheds light on the important role that the regulatory framework and the fiscal regime that govern the gold sector have played in perpetuating a system of unequal distribution of gains from gold exploitation in terms of tax revenue and foreign exchange earnings in favour of foreign gold companies. The statistical analysis of gold export statistics reveals substantial discrepancies between Ghana’s gold exports and the recorded value of imports by its trading partners. These differences point to export underinvoicing as a conduit of capital flight, while also exhibiting a systematic lack of transparency and inconsistencies vis-a-vis established international conventions governing the recording of trade transactions, especially in the case of gold destined for South Africa which does not show up in the latter’s import statistics. Overall, the analysis suggests that the gains from the gold sector remain much below potential, but that at the same time there may be room for reforms that can improve the benefits from gold exploitation for the country.
- Topic:
- Development, Regulation, Capital Flight, Exchange Rates, and Gold
- Political Geography:
- Africa, South Africa, and Ghana
20. The Implementation of Sustainability Taxonomies: The Case of South Africa
- Author:
- Sören Hilbrich, Kathrin Berensmann, Giovanna Artmann, Sam Ashman, and Theresa Herbold
- Publication Date:
- 01-2023
- Content Type:
- Working Paper
- Institution:
- German Institute of Development and Sustainability (IDOS)
- Abstract:
- In recent years, many jurisdictions have developed sustainability taxonomies that aim to increase transparency of financial markets and redirect capital flows to sustainable investments. Such sustainable finance policies can be important levers because today’s investments shape economic production processes for decades. This case study on South Africa’s Green Finance Taxonomy (GFT) addresses the question of what factors influence the adoption of sustainability taxonomies by potential users. It finds that one year after its publication, the GFT has hardly been used in practice. Important factors hindering an effective implementation are a lack of regulatory embedding, the absence of a legal recognition of the GFT by the European Union (EU), a hesitancy among financial market participants to build capacities to collect the necessary data, and fossil-fuel path dependencies in South Africa’s economy. These findings have important policy implications (e.g. regarding accompanying governance measures) for implementation processes in many countries in the coming years.
- Topic:
- Development, Economy, Capital Flows, Investment, and Sustainability
- Political Geography:
- Africa and South Africa