DBSA Charter, Strategy

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DBSA Charter, Strategy Key Initiatives
Presentation to Select Committee on Finance,
21 June 2006, Cape Town
DBSA TEAMAdmassu Tadesse Head, Corporate
Strategy, Office of the Chief Executive Bethuel
Netshiswinzhe, Regional Manager, Northern
RegionReuben Matlala Programme Manager, DBSA
Development Fund
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Outline of Presentation

• PART ONE
• DBSA Charter, Strategy and Key Initiatives
• PART TWO
• Siyenza Manje Initiative
• PART THREE
• Sustainable Communities Initiative
• PART FOUR
• Local Investment Agency Initiative

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Basis of Charter

• MANDATE
• DBSA Act of 1997
• Regulations
• MISSION
• finance expertise
• GUIDING PRINCIPLES
• Additionality
• Development impact
• Sound banking practices

• POLICY/INVESTMENT DIRECTIONS
• Constitution Legislation
• Peoples Contract
• MTSP/MTEF
• Dept/Sector Policy Frmwrks, Initiatives
  Programmes
• ASGISA, PGD Plans IDP
• SADC RISDP
• NEPAD MDGs

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DBSAs Vision 2014 is

• the progressive realization of an empowered and
  integrated region free of poverty, inequity and
  dependency
• to serve as a leading change agent for
  sustainable socio-economic development in the
  SADC region, and as a strategic partner in Africa
  south of the Sahara.

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Our Single Overarching Goal is

• Improve the quality of life of the people of the
  region

Our Five Core Objectives are

1. Co-deliver social economic infrastructure
2. Build human institutional capacity
3. Promote broad-based economic growth, job
   creation, cooperation, integration prosperity
4. Serve as a centre of excellence for development
   financing, innovation effectiveness
5. Ensure internal financial sustainability

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DBSAs Core Strategies

• Invest in assets, hard (physical) and soft (human
  institutional), that serve the poor, directly
  and indirectly, and that create broad-based
  wealth creation (infrastructural and productive
  capital)
• Mobilise, develop, apply and manage knowledge in
  support of development effectiveness, innovation
  and generally an enabling developmental
  environment

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Infrastructure Investment as a of GDP
Economic infrastructure 2004 (R40 Billion)
of GDP
social infrastructure (R13b in 2004)
50s 60s 70s
80s 90s 00s

Source RMB Economics Reserve Bank Quarterly
Bulletin
17/05/05
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Infrastructure service backlogs
Telephones
Electricity
Sanitation
Water
1996 2001
1996 2001
1996 2001
1996 2001
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Vision 2014 Strategic Thrusts
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Key Strategic Initiatives

• Siyenze Manje (ST 1, 3, 4)
• Sustainable Communities Initiative (ST 1, 2, 3,
  5)
• Local Investment Agency (ST 1, 2, 3, 6)
• Vulindela Academy (ST 1, 3, 4)
• Strategic Operational Support to
• Expanded Public Works Programme (ST 1, 2, 3, 4)
• Project Consolidate (ST 1, 3, 4)
• New Pricing Model (ST 1, 2, 5, 6)
• Targeted Infrastructure Programme (ST 1, 6)
• Soccer World Cup 2010 (ST 1, 4)
• LG Network Resource Centre (ST1, 3, 4, 5)
• Internal Corporate Entrepreneurship Innovation
  (ST 1, 3, 5)
• South African DFS Forum (ST 3, 5)
• Knowledge Management Africa (ST 1, 3, 4)

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DBSA Execution Modalities
FINANCIER PARTNER ADVISOR
Grant-maker Catalyst Policy analysis
Lender Lever Advocacy
Investor Implementation Agent TA training
Under-writer Collaborator (Development Facilitation) Research Evaluation
Arranger Integrator Development Information
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DBSAs Differentiated Roles in the Wider Regional
Context (a)
FINANCIER Role/Scope ZA SADC ASoS
Grant-maker
Lender
Investor
Under-writer
Arranger
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Key Goals of Governments Contract with the People

• 1. Reduce poverty by ½, via economic development,
  improved household community assets
• 2. Provide skills resources, build capacity
• 3. Reduce unemployment, new jobs, skills
  development, sustainable livelihoods
• 4. Reduce diseases, malnutrition, HIV/AIDS
  preventable causes of death
• 5. Position RSA as effective force in global and
  regional relations African growth prosperity

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DBSA Targets Toward Governments Peoples
Contract (a)
DBSA TARGET TARGET LEVEL GOAL IN PEOPLES CONTRACT
1/ Contribution to Employment Creation in South Africa (due to loan finance) - Total (absolute numbers) - Skilled - Semi-skilled - Unskilled 126 528 14 077 55 559 56 892 Goals 1, 2, 3
2/ Number of households connected to one or more basic services 2,421,117 Goals 1, 3, 4
3/ Income Contribution to Low Income Households in South Africa R 3,1 billion Goals 1, 3
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DBSA Targets Toward Governments Peoples
Contract (b)
DBSA TARGET TARGET LEVEL GOAL IN PEOPLES CONTRACT
4/ Contribution to Growth of the South African Economy (GDP) R 22,2 billion Goals 1,3
5/ Number of projects appraisals and feasibility studies undertaken or funded 2 000 Goals 1,3, 5
6/ Number of government officials, service delivery staff and other development organisation staff trained 50 000 Goals 2, 4
7/ Number of municipalities assisted in the establishment and development of financial management systems and capacities 136 Goal 2
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DBSA Targets Toward Governments Peoples
Contract (c)
DBSA TARGET TARGET LEVEL GOAL IN PEOPLES CONTRACT
8/ Number of municipalities assisted in the establishment and development of performance management systems and capacities, (especially planning, budgeting, revenue collection and credit control) 136 Goal 2
9/ Number of municipalities and provinces assisted in development planning and project preparation All provinces municipalities Goals 1, 3, 4
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DBSA Targets Toward Governments Peoples
Contract (d)
DBSA TARGET TARGET LEVEL GOAL IN PEOPLES CONTRACT
10/ South Africa local capacity building and technical assistance grants R 1 billion (spend) Goals 2, 4
11/ South Africa infrastructure spend R 30,4 billion Goals 1, 2, 3, 4
12/ Southern Africa infrastructure and economic growth spend (excl. RSA) R 15,2 billion Goals 4, 5
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• Thank You