Republic of South Africa
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                               Country Partnership Strategy (F14-17)

                                              Chair Summary*

                                             November 12, 2013

    The Executive Directors discussed the IBRD/IFC/MIGA FY14-17 Country Partnership
Strategy (CPS) for the Republic of South Africa (R2013-0187[IFC/R2013-0352, MIGA/R2013-
0085]).Directors welcomed the strong alignment of the CPS to the World Bank Group (WBG)
strategic goals. They noted that the CPS is anchored in the strategic priorities of South Africa’s
National Development Plan to eliminate extreme poverty by 2030, reduce inequality, create new
jobs, and increase the income of the bottom 40% of the population.

    Directors commended South Africa’s substantial achievements in overcoming the legacy of
apartheid and praised the country’s institutional reforms, prudent macroeconomic management,
and efforts to support inclusive growth. At the same time, they noted that substantial challenges
face the country, including the need to address large social imbalances, inequality, and
inadequate job creation while preserving macroeconomic stability. Directors noted the critical
need to address regional challenges such as energy security and to support transformational
activities that would boost development in South Africa and benefit other countries in Africa.

    The Directors strongly supported the pillars of the CPS, namely: reducing inequality;
promoting investments; and strengthening institutions. They encouraged South Africa and the
WBG to pursue activities that have the greatest potential for reducing poverty and promoting
shared prosperity, which leverage areas of WBG comparative advantage and are reflected in the
CPS results framework. Directors emphasized a focus on selectivity, programmatic approaches,
increased donor coordination, and vetting of planned activities through regular reviews with
national authorities. They supported the CPS focus on knowledge and technical cooperation –
including reimbursable advisory services - along with support for implementation of lending
activities in the energy and environment sectors and more gender-informed approaches.
Directors encouraged continued, diligent monitoring and supervision of the Eskom Investment
and Eskom Renewables Support Projects, with attention to implementation risk and safeguards.

    Directors underscored the importance of an integrated and complementary approach among
IBRD, IFC and MIGA under the CPS. They particularly emphasized coordination of WBG
activities to support the private sector investment environment and the critical overarching goal
of reducing inequality. Within this, Directors welcomed activities to address job creation,
productivity, urban development, regional integration, infrastructure, energy security, and clean
energy. They sought a larger role for IFC and MIGA and the selection of activities to
significantly expand private sector investment.

     Directors looked forward to more complete results tracking on gender and analysis of donor
coordination at the time of the mid-term progress report. Directors also welcomed the emerging
Knowledge Hub in South Africa as a vehicle to deliver development solutions within the country
and to support South-South learning.

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*This summary is not an approved record.