Policy Research and Advisory Services

The DFRC Policy Research and Advisory activities support financial sector strengthening and capital markets development and deepening.  The objective is to influence effective policy and regulatory changes, particularly as they relate to the DFI operational environment, so as to enhance the efficient mobilisation of resources to support investment.

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;
• Promotion of financial inclusion;
• Encouraging market – related pricing of financial resources;
• Stimulating savings growth; and
• Reducing costs of transacting.

By focusing on these objectives, the DFRC 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.

Support for Infrastructure

Infrastructure is one of two sectors, the other one being Industrialisation, encompassing Small Medium and Micro - sized enterprises (SMMEs), identified by the DFRC as core to accelerated investment growth in the SADC region. Policy and advisory activities of the DFRC, 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.

Support for SMMEs

The DFRC aims to assist the DFI Network through supporting the development and financing of the small, medium and micro enterprises (SMMEs) sector capable of exploiting the vast business opportunities that the region’s scarcely tapped natural and other resources offer. In so doing, regional employment opportunities will expand and begin to address the challenges posed by underdevelopment and poverty. Through targeted business support strategies for SMMEs, the DFRC aims to assure the DFI’s sustainability through a stronger client base.

The development of SMEs lies at the core of economic growth worldwide. Research has revealed that across the world the SME sector employs one-half to two thirds of the labour force in developing countries and that the sector contributes significantly towards national incomes.

SADC governments have adopted different policies, strategies and programmes to promote SMEs in their countries. On the whole, the policies