08 Dec 2013

Development Finance Institutions (DFI’s) remain crucial in addressing market gaps, Vice President Dr Ponatshego Kedikilwe has said.

Officiating at the 10th anniversary celebrations for the SADC Development Finance Resource Centre, (SADC-DFRC), Dr Kedikilwe said these institutions helped in the mobilisation of long- term finance for economic and social investments.

Dr Kedikilwe said government supported domestic DFI’s to enable them to achieve their mandates and assist in the attainment of national development objectives to eradicate poverty and diversify economy.

This, he said was evidenced by the results realised from the Economic Diversification Drive (EDD).Botswana’s development finance system, like that of other SADC countries, was diversified with various sector – specific DFI’s such as Botswana Development Corporation (BDC) as well as the National Development Bank (NDB).

He emphasised the important role that the DFRC continued to play in supporting DFI’s and capacitating them to continue to be effective agents of development in national economies. He said DFI’s needed to adapt and become competitive In the increasingly globalisation of the financial environment for them to effectively carry out their developmental mandates of mobilising resources for projects.

He said it was imperative for DFRC’s to step up its role in research and advisory services so as to provide much needed guidance and direction to policies that accompany the constantly changing development finance environment.Dr Kedikilwe SADC governments needed to identify the participation of the Public – private partnerships (PPP) as critical to augment their own resources.

“PPP’s are to be used effectively for development in the region as they are important in areas of technical requirements and institutional, legal and regulatory frameworks”, he said.

He said PPP’s could also come as an investment vehicle and building capacity within the public sector to develop, implement and manage projects.

Speaking at the event, SADC – DFRC Chief Executive Officer Mr Stuart Kufeni said the SADC – DFRC’s main mission was to provide capacity building and policy research and provide advise to SADC governments in support of financial and operational effectiveness.

The institution, also enhances governments’ efficiency in their contribution to economic growth and development in the SADC regioHe noted a number of DFI’s benefited from technical advice, particularly in restructuring their operations and feasibility studies.

With poor governance structures still endemic to some DFI’s, Mr Kufeni said the demand for courses on good corporate governance best practices remained one of the flagship courses of the DFRC, together with investment appraisal and risk management. SADC – DFRC came into being in July 2003 to serve as the secretariat of the SADC Development Finance Institutions (DFI’s) Network, the latter having been established in 2002.

The SDAC – DFRC is mandated to provide technical and capacity building support, policy research and advisory services to promote effective mobilization of resources by the financial sector, especially the Development Financial Institutions. It also plays a role in investments, in key areas with the potential to stimulate growth, generate employment and alleviate poverty.

The institution’s membership currently stands at 31, comprising financial institutions across the SADC region. Its Headquarters are in Gaborone. ENDS