Dr. Rosalind H. Thomas

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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

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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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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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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.)
• DFRCs structure staffing
• Board of Trustees
• Management
• Non-Resident Faculty of experts consultants
• DFRCs sources of funding
• Membership contributions (formula)
• Income generation (courses development
  literature)
• Donor funding/ Private Sector funding
• Subsidiarity Explained how we relate to SADC
  Secretariat

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5 Year Strategic Business Plan
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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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Two Year Work Program?
Key Focal Areas
DFRC Programs
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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. Target-govts 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
• Rthomas_at_sadc-dfrc.org
• www.sadc-dfrc.org (still under construction)