Transcript Welcome! [sadc

southern african
development community
development finance
resource center
Presentation on the SADC-DFRC
to the International Conference on
Reforming the Business Environment.
29 November – 1 December 2005
Cairo, Egypt
Convened By The Committee of Donor Agencies for
Small Enterprise Development.
Dr. Rosalind H. Thomas
Chief Executive Officer
southern african
development community
development finance
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SADC-DFI NETWORK & DFRC
PURPOSE OF PRESENTATION
To introduce the SADC-DFRC
Background & Establishment
Partnership Arrangements
Institutional Structure
Sources of Funding
Principle of Subsidiarity
The 5-year Strategic Business Plan, Programs &
Budgets in the context of the 15-year SADC RISDP
2 Year Work program (2005-2007)
Achievements to date
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southern african
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Background & Establishment
SADC Committee of Ministers of Finance & Investment
(COMFI)
1998 EU funded 3 studies focusing on–
Macroeconomic Convergence
Investment
Development Finance
Recommendations:
Development Finance Institutions Network
Development Finance Resource Centre
Project Preparation & Development Fund
These 3 form an emerging development finance system in SADC
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Workings of SADC Development Finance System
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southern african
development community
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DFI Network
Aim of DFI Network?
Collaborate on projects in SADC
Pool resources to mobilize funds for development projects
Take equity
Invest jointly in new structures
Collaborate on appropriate institutional mechanisms to facilitate
cooperation and development finance in SADC
Capacity building including exchange of personnel
Information technology, Policy research & analysis & technical
cooperation
To strengthen & build creditworthiness of Members
Develop common best practice approaches to risk management
Support to SADC Governments on policy advise &
financial sector strengthening and reform
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Establishment…
Strategic Partnerships are critical for success
IFIs including WB Group/AfDB/EIB
Other International /Regional/ National Partners (MEFMI etc.)
DFRC’s structure & staffing
Board of Trustees
Management
Non-Resident Faculty of experts & consultants
DFRC’s sources of funding
Membership contributions (formula)
1
Cost
Country A GDP
Country A Popn
 1 Cost
 1 Cost
4 14
2
4
Total SADC GDP
Total SADC Popn
Income generation (courses & development literature)
Donor funding/ Private Sector funding
Subsidiarity Explained –how we relate to SADC Secretariat
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southern african
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5 Year Strategic Business Plan
C.
Ensure conducive
Policy environment
and Govt. support
B.
Enhance DFI
s
delivery
A.
SMEs and
Infrastructure
D.
Efficient and
Effective Network
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5 Yr Strategic Business Plan…
Selecting Priorities?
Clear adherence to RISDP/ NEPAD/ Own National
priorities
Supporting Regional focus
Address directly job creation & poverty eradication;
and
Exploit the unique opportunity for relationships
provided by Network
Where DFRC can give effective support; but
Recognize limited capacity at DFRC
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5 Yr Strategic Business Plan…
Why SMEs?
Key to employment generation and poverty eradication
Promotes backward & forward linkages
Engine of growth for Private Sector
Covers all sectors, impacts on all Network Members
High returns to sharing successes & failures
Strong development impact
Currently neither public or private financial Institutions
meeting the needs of the small entrepreneur
Network DFIs well situated to advise Governments on SME
policy, regulatory & procurement issues
Key strategic emphasis of RISDP & NEPAD
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5 Yr Strategic Business Plan…
Why Infrastructure?
Key to promote regional trade, development & investment
Huge backlogs in critical infrastructure investments
Size of investments often require DFI cooperation/ joint financing
DFIs key role to advise Governments in development of
appropriate policy & regulatory environment to promote private
provision of infrastructure
PPPs must play an important role (scarce public sector savings are
needed for other priorities)
Tourism, social services including health, housing, education &
community infrastructure key to employment generation, equity
and integrated development
Key strategic emphasis of RISDP & NEPAD
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DFRC Programs
Key Focal Areas
Two Year Work
Program?
Financial Sector
Reform &
Strengthen
Institutional
Infrastructure/ SMEs Dev &
Strengthening PPPs delivery Suppt
Policy
Research &
Advisory
•L-Term Fin. Instr.
•Capital Markets
•Credit Ratings
•Advisory
Services
•Data mgmt
•Quantit. &
Analyt.tech. for
PPP appr.
•SME linkages
Capacity
Building
•Training on Credit
Rating method
•Corp.Gov
•Project Fin
•Risk Mgmt
•Invest. Appr
•Facilitate PPP
Units
•Negotiation
skills
•Training on
Business &
Export Markt
•Establish PPP
Units
•Packaging of
Infra projects
•Develop
linkages
PPI/SMEs
•Business
Support
Services
•Develop
linkages
FDI/SMEs
•Entrepreneur
development
•Women in
business
Infrastructure •L-T finance Instr–Bonds, equity.
/PPPs
derivatives
•SME financing
SMEs
Development •Procurement
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Achievements to date?
Capacity Building
Investment Appraisal & Risk Analysis
Corporate Governance
Risk Management
Policy Research
Data on DFIs in Network
Case Study on SME Linkages to FDI/PPI
Rating Methodology
Institutional reforms and resource mobilisation
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Achievements to date…
Infrastructure/ PPPs
Quantitative & Analytic Techniques for Appraisals of
PPPs (PPIAF)
PPP Facilitation Units- Mtwara Development Corridor
(pilot) (PPIAF)
PPDF Feasibility Study
SME Support
Survey of DFI support for SMEs
SMEs access to DFIs financial services
SME Credit Officers workshop
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Fund Raising / Donor Support ?
DANIDA Funds/ AfDB –Japanese Trust
Fund/ PPIAF funds
both on and off balance sheet
SADC Guidelines on Subsidiarity
constrain funds mobilisation
Most Donors want SADC Secretariat to forward
requests for funds
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SME Activities Elaborated
Support Programs
At two levels:
Policy & Institutional -focus on supply
side to improve service delivery. Targetgovts & DFIs/ banks.
Enterprise: focus on demand side to
improve quality of SME clients. Target –
entrepreneurs (women-special attention)
& bus. associations.
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SME Activities (Cont)
PROJECTS UNDRTAKEN
Financial Sector Reform & Strengthening:
TIB (Tanzania) reform & focus on SME
financing instruments.
Institutional Strengthening: DFI Restructuring
• CEDA (Botswana)
• NDB (Namibia)
Infrastructure/ PPPs
• Mozal Case Study Development
• Anglo American linkages model
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SME Activities (Cont)
Projects undertaken or under
development
Enterprise Support:
• SME Mentoring (Business Partners)
• Networking & Advocacy
• Collaboration – IFC/PEP Africa
 Access to finance
 Export Marketing
 Business Linkages
 Women in Business Development
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THANK YOU
Dr. Ros Thomas (CEO)
SADC-DFRC
P. Bag 0034
Gaborone
[email protected]
www.sadc-dfrc.org (still under construction)
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