Road safety financing is facing significant challenges, particularly in low- and middle-income countries (LMICs), according to discussions held at the 4th Global Ministerial Conference on Road Safety in Marrakech. The Multilateral Development Banks’ (MDB) Road Safety Working Group highlighted the need for large-scale investments to address road safety issues.
Currently, LMICs account for 92 percent of global road traffic fatalities despite having only 60 percent of the world’s vehicles and a mere 10 percent of paved interurban roads. This disparity underscores the urgency of addressing road safety as both a public health and economic crisis.
The MDBs have called for increased collaboration among national governments, private partners, and international donors to bridge funding gaps. They emphasize results- and policy-based lending, alongside sustainable bonds and loans, as essential tools to unlock new financing opportunities. These measures align with global efforts to meet the United Nations' target of halving road traffic fatalities by 2030.
From 2018 to 2024, MDBs partnered with governments to mobilize over $6 billion for road safety in LMICs. This investment led to notable reductions in deaths and injuries through improved infrastructure and innovative safety technologies.
However, traditional funding methods are insufficient for current challenges. A recent report titled "Financing Road Safety: Catalyzing the Sustainable Finance Market to Bridge the Gap" suggests that new financial instruments could attract private capital needed for vital improvements.
With rising demand for transport investments, MDBs project their road safety financing could reach $10 billion over the next decade. National governments are urged to prioritize these investments within their sectors while sustainable finance complements domestic efforts.
Guangzhe Chen, Vice President for Infrastructure at the World Bank, points out that their Global Road Safety Facility has significantly increased investments from 2018 to 2023. Chen states: "Investing in road safety is a top priority for us," adding that interventions like road rehabilitation and improved enforcement are crucial. He emphasizes scaling up financing through various mechanisms as vital to saving more lives.
Members of the MDB Road Safety Working Group include major development banks such as African Development Bank Group, Asian Development Bank, European Investment Bank, Inter-American Development Bank, Islamic Development Bank, New Development Bank, and others.