1. OVERVIEW OF ANNUAL REPORT PRESENTED TO THE PCOF / NCOP SC
Mr. M S V Gantsho
(Managing Director and Chief Executive DBSA)
PROMOTING SUSTAINABLE DEVELOPMENT BEYOND THE WORLD SUMMIT

2. Overview The DBSA’s Mandate Sustainable Development DBSA Approach
Pillars: Planet
Pillars: Prosperity
Pillars: People
Performance Overview
Conclusion

3. The Mandate of the DBSA
Vision is to be a change agent for socio economic development in Southern Africa
Contributes to sustainable development by mobilizing resources to build foundations for economic growth and delivery of basic services
Plays a triple role of Lender/Investor, Advisor and Partner for development
Sustainable Development Impact is the goal of Bank’s operations
Financial strength is the means towards this goal

4. Sustainable Development
Historically, the understanding:
Focused on saving the earth for future generations
Did not emphasise social realities
Since the 1992 Earth Summit in Rio, to be sustainable, development must
contribute to economic growth,
protect and restore ecological systems, and
improve people’s lives

5. Pillars of Sustainable Development
Concept has thus come of age, and now rests on three ‘Ps’
Prosperity, i.e. economic efficiency and growth
People, i.e. poverty alleviation and betterment of quality of life
Planet, i.e. protection and restoration of the ecological systems

6. The DBSA Approach
For DBSA, sustainable development is not just a paradigm or concept, it is a core value system of our business
Project appraisal process addresses following dimensions:
Economic
Social
Environmental
Institutional
Financial
Technical
Support to clients in removing constraints and enhancing development impact

7. The Three P’s : Planet DBSA Support
Environmental appraisal module not only assesses risks but explores means to mitigate and manage risks
Assists borrowers to build environmental management and monitoring capacity
Contributes to environmental policy formulation and implementation

8. The Three P’s : Planet DBSA Support
Partnerships to support innovative solutions:
Partnership with Eskom : renewable energy demonstration project on DBSA premises
Partnership with KfW to test wind energy
Agency Agreement with World Bank Prototype Carbon Fund
Participation in policy initiatives:
Multilateral Financial Institutional Group on harmonisation of environmental guidelines
UNEP initiative to develop guidelines on reporting and management for financial sector

9. The Three P’s: Prosperity DBSA Support
All projects must have a positive economic impact:
Contribution to GDP
Employment Creation
Capital Utilisation
Income generation by households
Overall results for 2001/02:
GDP impact: R8,9 billion
Estimated jobs to be created
Estimated contribution to low income households: R1,1 billion
For every R1 of DBSA investment, R3,30 mobilised from other sources

10. The Three P’s: People DBSA Support
Bank’s project appraisal addresses four key issues:
Quality of life
Empowerment
Gender equity
Human capital formation
Impacts measured:
Access to basic services
Households expected to benefit
Economic opportunities
Improved health standards
Creation of training and employment opportunities (including gender)
Involvement of local and emerging contractors

11. DBSA Performance Overview
INPUTS:
2002
2001
Loan approvals
3.2 bln
2.2 bln
45%
Loan disbursements
1.8 bln
1.6 bln
13%
Grants for capacity building
9.9 mil
5.5 mil
80%
Private Sector Projects
1.0 bln
0.5 bln
96%

12. DBSA Performance Overview
OUTCOMES
2002
2001
Value of projects supported
R13.5 bln
R13.9 bln
(3%)
Percentage of new investments made inside SA
78%
44%
34%
Leveraged funding from other sources for every Rand of DBSA
R3.30
R5.30
(61%)
Number of Jobs created
43 000
13 200
226%
Expected contribution to GDP
R8.9 bln
R2.1 bln
324%
Households expected to be connected to basic services
0.6 mil
1.1 mill
(83%)
Estimated contribution to income of low income households
R1.1 bln
R0.3 bln
267%
Maintained strong local credit rating (Fitch IBCA)
AAA -
Improved International credit rating (Moody’s)
Baa3
Baa2
Surplus from operations
R724 mill
R566 mill
28%

13. Conclusion The DBSA remains on a solid foundation
Financial strength
Development impact
Establishment of dedicated Development Fund that enhance capacity building role
Short term strategic thrusts (“quantum leap”) and longer term vision (Vision 2010 significant growth in operations and development impact.

14. SHUN THE INCREMENTAL
GO FOR THE QUANTUM LEAP

15.
Thank you!
Building foundations for development…….