Abstract
Infrastructure development in many countries is considered as the most important
factor
which contributes to production growth by encouraging economic activities, productivity and
improving
the quality of life. Infrastructure is considered to have a positive and significant effect on
productivity growth in all sectors of the economy. Infrastructure development is a means of
promoting economic growth and it is essential for any country to investment in infrastructure that
will leads to economic growth. Infrastructure is categorized in different category namely: physical
infrastructure (which includes water system, electricity, roads and transport, etc.) and social
infrastructure (which includes education and health facilities). In simple words infrastructure
development aid to stimulates economic growth and create jobs for citizens. This is the indication
that government must invest in infrastructure development and enjoy the benefits their investments
will stimulates and also to maintain service delivery to the public. The objective of this study is
to assess the sources of infrastructure financing in South Africa. The study is conducted with
reference to existing theoretical literature, published and unpublished researches in order to
assess the sources of infrastructure financing in South Africa. Findings revealed that there are
major sources of infrastructure financing which includes: tax revenues; lenders to government or
enterprises (loans or guarantees); private investors (equity); development agencies (loans); donors
(grants); tariffs and public-private partnerships. The study is conducted with reference to
existing literature, unpublished and published research. Hence, this study assess the sources of
infrastructure financing in South Africa and presented a robust background on the current sources
of infrastructure financing. The findings of this study thus contribute to the body of knowledge on
infrastructure financing and other available sources of infrastructure financing other than the use
of taxation revenues to finance infrastructure. Furthermore, the findings provides a robust
understanding of the need and importance of financing infrastructure.