Road safety financing is facing a significant shortfall, impeding efforts to reduce global road traffic fatalities and injuries by 2030. Annually, road accidents result in approximately 1.19 million deaths, numerous permanent disabilities, and substantial economic costs.
Low- and middle-income countries (LMICs) are disproportionately affected, with these nations accounting for 92% of global fatalities despite possessing around 60% of the world's vehicles and only 10% of its paved interurban roads. This disparity highlights the pressing need for intervention to tackle this public health and economic crisis.
This issue was central to discussions at a meeting of the Multilateral Development Banks’ (MDB) Road Safety Working Group during the 4th Global Ministerial Conference on Road Safety in Marrakech, Morocco. The conference underscored the necessity for large-scale investments in road safety to achieve significant long-term impacts, particularly in LMICs.
The MDBs called for enhanced collaboration among national governments, private partners, and international donors to close the funding gap and advance global road safety initiatives. Results- and policy-based lending, along with sustainable bonds and loans, are seen as essential tools for unlocking new financing while ensuring that road safety policies deliver measurable benefits globally. These mechanisms align with 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 in road safety financing within LMICs. These investments have led to reductions in road deaths and injuries through improved infrastructure, reduced crash risks, and innovative safety technologies.
Traditional funding methods are inadequate against the challenges posed by the global road safety crisis. A recent report titled "Financing Road Safety: Catalyzing the Sustainable Finance Market to Bridge the Gap," produced by several global institutions, highlights new instruments capable of mobilizing private capital for vital road safety improvements.
With increasing demand for roads and urban transport investments, MDBs project their road safety financing could reach $10 billion over the next decade. Strengthening road safety requires collective commitment from national governments prioritizing investments within their transport sectors alongside sustainable finance supporting domestic efforts—ensuring that it remains a strategic priority within national infrastructure planning.
Guangzhe Chen, Vice President for Infrastructure at the World Bank emphasizes interventions like "road rehabilitation," "crash barriers," "vehicle safety standards," "improved enforcement," and "faster emergency response." He states: “Despite progress, road crashes remain a major public health crisis... Expanding investment in road safety projects—including through sustainable bonds...is one way we can meet this urgent need.”