As per the National Development Plan (“NDP”) 2030, water is a strategic resource critical for social and economic development. South Africa has experienced increasing water demand emanating from irrigated agriculture, mining and industry, with climate change exacerbating drought conditions.

South Africa’s healthcare sector is unequal, with an underfunded public system and expensive private healthcare, for which patients typically use private medical aid which is not affordable for majority of the population.

To address this inequality, the Government of South Africa launched the National Health Insurance (“NHI”) in 2024 to facilitate universal access to quality healthcare, backed by major infrastructure and digital health upgrades. The implementation of the NHI will require significant investment in infrastructure and digital upgrades.

IDC, as a state-owned national financial intermediary, plays a key role in mobilizing funding for infrastructure aligned with NDP goals to contribute to investments in the two sectors. This aligns with the priorities of the government of South Africa aimed at (i) improving water security, better water and sanitation services, and driving economic growth through water-intensive industries, and (ii) access to quality healthcare for all citizens.