Research partnership aims to bridge gap between evidence and policy action
South Africa's commitment to anchoring economic decision-making in solid research has been reinforced with the launch of a new chapter in a key policy partnership. The National Treasury and its collaborators have unveiled the third phase of the Southern Africa – Towards Inclusive Economic Development (SA-TIED) programme, a initiative designed to ensure that government policy is shaped by credible, jointly produced evidence rather than guesswork or political expediency.
Speaking in Pretoria on Tuesday, Deputy Finance Minister Dr David Masondo underscored the programme's foundational philosophy.
"At its core, SA-TIED is anchored on a simple and yet powerful principle — good policy must be grounded in credible evidence. Better evidence leads to better policy, and better policy leads to better outcomes for our people."
The programme operates as a research-policy collaboration between the National Treasury, the South African Revenue Service (SARS), and the United Nations University World Institute for Development Economics Research (UNU-WIDER). It receives financial backing from the European Union and the United Kingdom's Foreign, Commonwealth and Development Office. Since its inception, SA-TIED has sought to narrow the divide between academic research and practical policy implementation by embedding evidence directly into government processes while simultaneously developing analytical expertise within the state.
Phase II delivers significant research output and skills development
The programme's second phase has yielded an impressive body of work that has directly shaped South Africa's policy landscape. More than 130 research papers have been published, with South African researchers serving as authors or co-authors on 65% of them. Women contributed as authors or co-authors to 63% of the publications. Additionally, over 200 individuals — half of whom are government employees — received training in advanced economic modelling, econometrics, spatial analysis, and data science, equipping them with capabilities that will outlast the programme itself.
Incoming UNU-WIDER Director Patricia Justino highlighted the critical importance of continued investment in research, particularly during volatile times.
"Research is not a luxury, if anything, it is needed more than ever. In times of uncertainty, bad decisions become very costly, short-term thinking becomes very tempting, and political pressure can crowd out careful thinking. What SA-TIED has built is something very rare: trust between research and policymaking. That trust is the foundation on which Phase III will be built."
Among the standout accomplishments of the second phase is the expansion of the National Treasury Secure Data Facility (NTSDF), recognised as one of the first institutions of its kind in the Global South. The facility links anonymised administrative tax data and has supported more than 65 researchers in the past year alone, directly informing government policy outputs. Its approach to responsible administrative data use has attracted international attention, with several countries already looking to replicate the model.
SARS Deputy Commissioner Johnstone Makhubu reaffirmed the revenue service's strategic dedication to leveraging data for policy purposes.
"We see tax administration data as the lifeblood of research and economic policy design. We gather data with the end in mind, not only for tax administration purposes, but also for research."
Research conducted under the SA-TIED banner has tackled six critical areas central to South Africa's development trajectory: enterprise development for employment creation and growth; public revenue mobilisation for inclusive development; structural transformation, labour markets, and inequality dynamics; macro-fiscal analysis and policy modelling; food, energy, and water security amid climate change; and reform implementation and delivery.
The third phase, which will run from 2026 to 2029, is set to build on and deepen these achievements. Its priorities include fortifying the connection between research findings and policy execution, broadening access to administrative datasets, and enhancing state capacity through targeted training, skills development, and deeper integration of evidence-based approaches within government institutions.
South Africans stand to benefit from stronger alignment between economic research and government decision-making, particularly in areas such as job creation, tax policy, inequality, and climate resilience. For businesses, improved data-driven regulation could reduce uncertainty and support growth, while expanded training of public servants in economic analysis may lead to more effective service delivery. As Phase III runs through 2029, its success will depend on sustaining institutional trust and translating research into tangible policy outcomes.
