Title: DBSA Charter, Strategy
1DBSA 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
2Outline 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
3Basis 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
4DBSAs 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.
5Our Single Overarching Goal is
- Improve the quality of life of the people of the
region
Our Five Core Objectives are
- Co-deliver social economic infrastructure
- Build human institutional capacity
- Promote broad-based economic growth, job
creation, cooperation, integration prosperity - Serve as a centre of excellence for development
financing, innovation effectiveness - Ensure internal financial sustainability
6DBSAs 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
7Infrastructure 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
8Infrastructure service backlogs
Telephones
Electricity
Sanitation
Water
1996 2001
1996 2001
1996 2001
1996 2001
9Vision 2014 Strategic Thrusts
10Key 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)
11DBSA 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
12DBSAs Differentiated Roles in the Wider Regional
Context (a)
FINANCIER Role/Scope ZA SADC ASoS
Grant-maker
Lender
Investor
Under-writer
Arranger
13Key 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
14DBSA 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
15DBSA 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
16DBSA 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
17DBSA 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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