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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 Development (NEPAD) initiative also recognises the important financing role of DFIs in the African continent and the need to work through existing institutions like the Network and its members to achieve Africa’s development challenges. Like SADC, NEPAD also focuses attention on capacity building and policy analysis and support as a critical development driver. The DFRC will provide support for this focus and is working closely with the NEPAD Secretariat to build capacities and develop strategies to strengthen the financial sector.
The AU’s constitutive instruments identify the critical role of regional organisation's and of development finance in harnessing Africa's potential. It targets capacity building, as one of the critical areas for achieving much needed economic growth and development. The AU's goals are, therefore, supportive of and have much in common with those of SADC, and have been embraced by SADC DFIs.
As a building block of the AU, SADC will need to play a role in achieving the continental long-term goals of the union, and in this respect, as an institution of SADC, the DFI Network and its DFRC will have a critical role to play.