An Analysis of the Link between Water Infrastructure Financing and Water Provision South Africa

Lerato C Bapela, Collins C Ngwakwe and Mokoko P Sebola

Journal of Economics and Behavioral Studies, 2018, vol. 10, issue 3, 74-83

Abstract: This paper evaluated the relationship between water infrastructure financing and water provision in South Africa. The research followed a quantitative research design; secondary data for water infrastructure financing and water provision in South Africa was obtained from the Trans - Caledon Tunneling Agency (TCTA) and the World Bank for the period 1994 - 2014 . The regression results indicated two separate findings which offers unique contribution to the current literature; results from water asset finance as a single independent variable on water provision showed a significant relationship. However, an addition of two control variables , corruption and violence, neutralised the effectiveness of water asset finance on water provision to the extent that water asset finance became less significant with a P value of 0.05. The paper makes a nuance contribution from the findings, which specifically is that finance alone may not deliver target water provision if corruption and violence is left unbridled. The paper thus recommends the need for public policy makers to control the rate of corruption and violence to enable effective application of water infrastructure finance in water provision. The paper also recommends the need for further research on other government departments to integrate corruption and violence as control variables.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arjebs:v:10:y:2018:i:3:p:74-83

DOI: 10.22610/jebs.v10i3.2318

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