1. DBSA Charter, Strategy & Key Initiatives Presentation to Select Committee on Finance, 21 June 2006, Cape Town DBSA TEAM Admassu Tadesse: Head, Corporate Strategy, Office of the Chief Executive Bethuel Netshiswinzhe, Regional Manager, Northern Region Reuben Matlala: Programme Manager, DBSA Development Fund

2. 2 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

3. 3 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 –People’s Contract –MTSP/MTEF –Dept/Sector Policy Frmwrks, Initiatives & Programmes –ASGISA, PGD Plans & IDP –SADC RISDP –NEPAD & MDGs

4. 4 DBSA’s 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.

5. 5 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

6. 6 DBSA’s 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;

7. 7 50s 60s 70s 80s 90s 00s 17/05/05 social infrastructure (R13b in 2004) Economic infrastructure 2004 (R40 Billion) 0 2 4 6 8 10 12 14 16 % of GDP Infrastructure Investment as a % of GDP Source: RMB Economics & Reserve Bank Quarterly Bulletin

8. 8 Infrastructure service backlogs 1996 2001 Water Sanitation Electricity Telephones

9. 9 1 - Broadening & Deepening Development Impact 7. Performance Recognition & Reward 3. Knowledge Management 4. Smart Partnerships 5. Innovation & Corporate Entrepreneurship 6. Responsible Risk Taking & Risk Management 2. Black Economic Empowerment 8. Alignment of Strategy, Structure, Processes & Culture Vision 2014 Strategic Thrusts

10. 10 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)

11. 11 DBSA Execution Modalities FINANCIERPARTNERADVISOR Grant-makerCatalystPolicy analysis LenderLeverAdvocacy InvestorImplementation Agent TA & training Under-writerCollaborator (Development Facilitation) Research & Evaluation ArrangerIntegratorDevelopment Information

12. 12 DBSA’s Differentiated Roles in the Wider Regional Context (a) FINANCIER Role/Scope ZASADCASoS Grant-maker Lender Investor Under-writer Arranger

13. 13 Key Goals of Government’s 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

14. 14 DBSA Targets Toward Government’s People’s Contract (a) DBSA TARGETTARGET LEVEL GOAL IN PEOPLE’S 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 2,421,117Goals 1, 3, 4 3/ Income Contribution to Low Income Households in South Africa R 3,1 billion Goals 1, 3

15. 15 DBSA TARGET TARGET LEVEL GOAL IN PEOPLE’S 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 DBSA Targets Toward Government’s People’s Contract (b)

16. 16 DBSA TARGET TARGET LEVEL GOAL IN PEOPLE’S 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 DBSA Targets Toward Government’s People’s Contract (c)

17. 17 DBSA TARGET TARGET LEVEL GOAL IN PEOPLE’S 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 DBSA Targets Toward Government’s People’s Contract (d)

18. 18 Thank You