Browsing by Subject "Multilateral Development Banks"

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    The impact of Multilateral Development Bank (MDB) support to South Africa during COVID-19
    (2026) Kazamula, Nhlalala; Albertus, Rene
    This study investigates the impact of Multilateral Development Bank support on South Africa's economic performance during the COVID-19 pandemic. In response to the unprecedented health and economic crisis, Multilateral Development Banks, such as the International Monetary Fund World Bank, African Development Bank, and New Development Bank, are rapidly mobilising financial support to assist countries in managing public health responses and stimulating economic recovery. The study adopted a quantitative research approach to analyse time series data to assess the relationship between Multilateral Development Bank funding and these key macroeconomic indicators. Using descriptive statistics, correlation, and regression analysis, including Autoregressive Distributed Lag modelling, the research identified a statistically significant positive relationship between Multilateral Development Bank funding and gross domestic product, indicating that these financial inflows contributed to economic resilience and growth. The findings reveal a statistically significant and positive relationship between Multilateral Development Bank disbursements and gross domestic product growth. The analysis suggests that Multilateral Development Bank funding acted as a countercyclical buffer, contributing to economic resilience by supporting infrastructure development, healthcare, and education, sectors crucial for sustainable recovery. The strong explanatory power of the regression models, along with diagnostic tests confirming their robustness, underscores the reliability of the results. Based on these insights, the study offers several strategic recommendations, i.e. enhancing the alignment of Multilateral Development Bank-funded projects with South Africa's national development plans, conducting sector-specific impact assessments to improve resource targeting, strengthening monitoring and evaluation frameworks to increase accountability, and promoting greater private sector engagement through innovative financial instruments such as blended finance and impact bonds. Overall, the study contributes to a deeper understanding of how crisis-response funding from Multilateral Development Banks can support macroeconomic stability and foster structural transformation in emerging economies. It also provides a valuable evidence base to inform future Multilateral Development Bank operations, donor strategies, and domestic policy formulation in times of economic volatility.