How we calculated cost to service delivery

How we calculated cost to service delivery


Here's how we arrived at the above figures. Firstly the Oxfam research indicating the $29 billion that left South Africa in 2012 can be found here:

$29 billion US in 2012 had a 8.63 exchange rate to the rand, so that's R250,270,000,000. The average corporate tax rate in 2012 in South Africa was 35%, thus roughly R86,468,285,000 could have been paid in tax. For the purposes of the above infographic to try bring to life what this money could have achieved if spent on service delivery, we divided the R86 billion into 4 allocations of R21,500,000,000 and looked at what that could have done in the areas of housing, education, health and sanitation.

Media reports in 2011 put the cost of a RDP house at R54,000 Based on this, R21,500,000,000 could build almost 400,000 RDP houses in 2012.

Media reports in 2012 put the Education Departments own new cost calculations to build a new school at R30,000,000. . Based on this, you could build around 716 new schools.

Calculating the cost of the number of nurses who could have been trained with R21,500,000,000 was not easy. No figures could be found, so based on a rough calculation of the cost of studying nursing at the Cape Peninsula University of Technology, we costed nurse training over a 4 year degree as R60,270 . Therefore roughly 300,000 nurses could have been trained.

Calculating the cost of building a flushing toilet proved extremely difficult based on many variables. The best summary we found on the different costings was found here: We took an average cost of building a flushing toilet as R23,888. Therefore a R21,500,000,000 additional budget allocation for building flushing toilets would allow roughly 900,000 to be built.

We welcome any members of the public providing us with more accurate costings and research so we can improve the accuracy of the above infographic.