About Us: Page 4 of 5

organisations of SADC.

 

Relationship with the SADC Secretariat

The SADC Committee of Ministers responsible for Finance & Investment (COMFI) is a permanent committee of the Integrated Committee of Ministers (ICM) which reports through to the SADC Council of Ministers (See Figure 1 below). COMFI is supported by the Senior Treasury Officials and the Committee of Central Bank Governors.

 

The DFI Subcommittee, which is comprised of all national DFIs in SADC member countries, is a subcommittee of the Senior Treasury Officials of SADC, and reports through them to COMFI.

The DFIs, through the DFRC, enjoy a functional relationship with the SADC Secretariat. Their main interface is through the Directorate for Trade, Industry, Finance and Investment (TIFI). However, strong operational links are being developed with the Infrastructure & Services and Food, Agriculture & Natural Resources Directorates (FANR).

 

While all members of the Network are members of the DFI Subcommittee, not all DFIs represented on the Subcommittee are members of the Network. The Network is comprised of those DFIs that have signed the May 2000 MOU, which establishes it as an institutional mechanism of SADC.

 

The aim of the Network is to co-operate to ensure availability of adequate developmental finance in SADC. Currently, 29 DFIs from 11 SADC countries have signed the MOU and are members of the Network. Two more members are expected to join by 2012.

 

The DFRC is ‘owned’ collectively by all the DFIs in SADC as an ‘industry-owned’ self-help organization. It provides the vehicle for supporting advisory and capacity building services to the Network and the finance sector. The DFRC is expected to facilitate, through the Network, the emergence of a new ‘internal market forces dynamic’ aimed at addressing regional development financing needs. By being pro-active, the DFRC acting on behalf of all its members is expected to nudge the region's development financing capacity, knowledge and skills base gradually towards the cutting edge of financial services delivery.

 

DIAGRAM

 

Relevance to NEPAD and AU

Development finance and DFIs play a critical role in the SADC region and will continue to do so for the foreseeable future. DFIs are key players for the provision of long-term capital for development projects for infrastructure, for stimulating industrial development and value-adding, promoting entrepreneurship and private sector development, trade finance, capital markets development through facilitating privatisation of state-owned assets, technological advancement, financing of agricultural development, microfinance and gender credit and support.

 

As highlighted in the SADC RISDP, these areas are crucial for the successful achievement of regional integration and co-operation. SADC has recognised the important role of the DFI Network’s financing activities in achieving the successful implementation of the RISDP.

 

As a critical strategy of the African Union (AU), the New Partnership for Africa’s