Policy Research and Advisory Services

Financial Sector Strengthening & Capital Markets Development

The overall objective is to influence effective policy and regulatory changes in the SADC region to enhance efficient resource mobilisation to underpin investment critical for the attainment of the goals of growth, employment and poverty alleviation. In this regard, the DFRC’s research work complements other sectoral efforts under the SADC RISDP as well as the AU and NEPAD to create an investment friendly environment as a prerequisite for the attainment of these objectives.

 

The DFRC, in recognition of the central role of the financial sector to resource mobilization (both domestic and foreign), has identified financial sector strengthening and reforms, encompassing capital markets deepening, as a major theme of its research work.

To achieve this objective, research will, among other areas, seek to achieve the:

  • Elimination of financial repression;
  • Promotion of appropriate money and capital markets resource mobilisation instruments;
  • Stimulating competition among financial intermediaries, bank and non – bank, including DFIs;
  • Supporting good corporate governance and risk management;
  • Encouraging market – related pricing of financial resources;
  • Stimulating savings growth;
  • Reducing costs of transacting.


By focusing on these objectives, the Centre will make a significant contribution towards the achievement of the SADC RISDP regional goal of financial sector integration.

 

Institutional Strengthening

While research activities by the DFRC are directed primarily at bringing about policy and regulatory changes, advisory services will focus mainly on facilitating the strengthening of individual DFIs and will also target regional governments. To achieve this, it will develop and position itself to make readily available information and expertise. Thus, besides putting in place programmes tailor-made to specific institutions, the DFRC will also manage a robust data bank of experts and information to underpin its advisory activities.
Policy Support for Infrastructure

Infrastructure is one of two sectors, the other one being small Medium enterprises (SMEs), identified by the DFRC as core to accelerated investment growth in the SADC region. Policy and advisory activities of the centre, therefore, will aim to actively support and advocate for a conducive policy environment for the stimulation of private provision of infrastructure (PPI). This will be achieved by facilitating the removal of policy, institutional and regulatory impediments to private investment growth, both at national as well as regional levels.
Policy Support for SMEs

As in many a developing country, SMEs represent a significant proportion of the economy and account for an equally significant level of the employed. Cognisant of this and, similar to infrastructure, policy support for the sector will seek to create a climate conducive to SME growth.