ADDRESS by Mr. Patrick Dlamini, Chief Executive Officer, Development Bank of Southern Africa On the occasion of the launch of the Municipal Capacity Development Programme held at Turbine Hall, Newtown, Johannesburg on 29 September 2014 • Honourable Minister of Cooperative governance and Traditional Affairs: Dr. Pravin Gordhan • Director General of Department of Mineral Resources: Dr. Thibedi Ramontja • Executive Director for Anglo American in South Africa Group: Ms Khanyisile Kweyama • Representative of Investment Climate Facility (ICF) for Africa: Thomas Fugelsnes • Mayors, Municipal Managers and CFOs of King Sabata Dalindyebo, Ga-Segonyana, Gamagara, Joe Morolong, Tsantsabane, Thabazimbi, Greater Tubatse, Mogalakwena, Emalahleni, Moses Kotane and Rustenburg municipalities. • Our Partners o National and Provincial Treasury Departments o National and Provincial COGTA Departments o South African Local Government Association • Other colleagues from various key institutions and organisations It is a great pleasure and honour for me to be part of this momentous event, representing the Development Bank of Southern Africa. 1
1. About the DBSA The Development Bank of Southern Africa (DBSA) is one of the leading Development Financial Institutions (DFIs) in South Africa and Southern Africa. The DBSA provides financing, project preparation and implementation support in South Africa and the rest of the African continent to improve the quality of life of people in support of economic growth and regional integration. DBSA is integrated across product markets, sectors and clients and delivers synchronised infrastructure solutions. In an effort towards achieving this trajectory, the DBSA drives development impact in the country and the continent through expanding access to development finance and effectively integrating and implementing sustainable development solutions. DBSA’s Experience in Project Planning & Implementation Support 2. During the past financial year the Bank provided non-financing support to a range of strategic programmes. The DBSA facilitated the implementation of the Accelerated School Infrastructure Development Programme (ASIDI) to eradicate unhealthy and unsafe school structures in the Eastern Cape. DBSA completed the construction of the final 32 of 49 schools as part of phase I of the programme. Almost 9 000 learners enrolled in these schools during 2014. An estimated 3 453 job opportunities and 57 small medium enterprises benefited during the construction of these new schools; The Department of Basic Education has shown confidence in the bank once more by assigning the responsibility to constructing a further 71 new schools in the next two years. 18 schools were under construction by year-end; 2
The Bank’s efforts in the housing sector are centred on a pilot project in Elliotdale, Eastern Cape, where 560 units were completed during the year and a further 1 000 are currently in the planning stages; The Bank aided in the construction of 41 doctors’ consulting rooms across the country in areas identified as National Health Insurance (NHI) pilot districts. We also supported the national Department of Health to carry out refurbishment and maintenance of facilities at 68 clinics in the NHI districts; and It is estimated that about 109 000 households would benefit from these basic social infrastructure projects. More than 4 600 temporary jobs were created through these projects In the context of being in a strategic partnership with Anglo American in South Africa Group (AASA) and the Investment Climate Facility (ICF), DBSA as a leading implementing agent seeks to advance the MCDP’s desire of enhancing the capacity of municipalities to provide basic services. DBSA is fully cognisant of its role of supporting national and private sector investments to enhance critical infrastructure service delivery in the country. 3. What Do Partnerships Mean for DBSA? One of the key strategic focus areas for the bank is partnerships. Partnerships are our main growth driver in leveraging private sector resources for development. In this relationship, government (municipalities) must be instrumental in ensuring that private sector participation in the economy leads to meaningful social development, community upliftment and empowerment; Key to this is civil society participation which will be critical in ensuring partnerships that benefit people widely; The realities facing municipalities bring all the parties to this agreement into sharp focus, as agents and catalysts of genuine grassroots participation in key development initiatives; 3
The commitment of the partners in the MCDP is reflected in the agreement to share financial, technical and operational risks in the development and execution of the programme. 4. Relationship Between MCDP and Development Challenges Facing South Africa The recent assessment of municipalities conducted by COGTA highlighted that there has been great improvement in most municipalities over the past 14 years; however, a third of these municipalities are not doing well. For instance, the recent Auditor General’s report revealed that only 9 % of municipalities received clean audits; Some of the key challenges that continue to hamper impactful progress in municipalities include amongst others:- inadequate public participation at local government level, slow service delivery, unskilled personnel, insufficient institutional capacity, and a low rate of revenue collection. This renders most municipalities especially rural municipalities dysfunctional, hence the necessity for the MCDP; The MCDP will render the most needed support to the participating municipalities to enable them to plan better, operate responsive and competent administrations and sound financial management to improve performance. DBSA’s Role in this Partnership 5. As a partner to the agreement, the DBSA is providing Programme Management support services to oversee the planning and implementation of the programme in the following areas: Revenue enhancement initiatives; Operations and Maintenance; Comprehensive Infrastructure Planning; Municipal Automated Information systems; and Communication and Behaviour change. 4
6. Wishing Success for the Programme In conclusion, o I wish to thank AASA and ICF for their financial investment in making the MCDP a reality and choosing the DBSA as the Capacity development delivery partner; and I also would like to o Challenge other strategic private sector partners to contribute to government priorities by supporting the local government sphere to deliver services efficiently. To the municipal officials, I wish to say that you are activists of transformation. The programme of implementing the MCDP concept has challenges that will require tenacity of purpose, and focus on the cause of development. To the Investment Climate Facility, your investment in the lives of South Africans is commendable and will yield positively. I trust your efforts will encourage other key development partners to join forces with us as we make a difference to the lives of many; To Anglo American in South Africa team, I thank you for hosting this event – we pledge to work with you as you traverse the long, winding and rough terrain of national reconstruction. My sincere gratitude also goes to AASA Group’s local business units; Thermal coal, Rustenburg Platinum and Kumba Iron Ore. TOGETHER WE WILL SUCCEED Thank you 5
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