Southern Africa—Cost Benefit Analysis in Southern Africa

With increasing scrutiny on how government tax revenue is spent, bilateral donors must be able to devise high-impact, cost-effective approaches to development that demonstrate value for money. The Swiss Agency for Development and Cooperation (SDC) commissioned DAI to advise on how to integrate cost-benefit analysis into the SDC’s programming in Southern Africa. Based on the cost-benefit analysis of a food security project in Malawi and an education project in South Africa, DAI is developing case studies to train SDC staff and partners on how to integrate CBA into current and future projects. The Malawian post-harvest project is being implemented by CIMMYT, while the South African education project is being implemented by an institution set up by the SDC and Swiss companies operating in South Africa.

Sample Activities

• Select the country of focus for the food security project and develop and validate a clear analytical framework and methodology for the CBA for both projects.
• Introduce a step-by-step CBA into ongoing and future projects by having an analysis of two projects by external experts with a view to use these two case studies to train local staff and partners on tools, approaches, and necessary steps to integrate CBA.
• Conduct CBA training to create an understanding of the CBA model, the techniques, and their application. This will be done by using case studies and illustrations from each of the project cost-benefit analyses.
• Improve the efficiency and effectiveness of the donor’s development activities in Southern Africa.