SADC DFI Executives discuss Balancing DFI Developmental Mandate with Sustainability

The Network convened a CEOs forum under the above theme on 8th June 2023 at the Swakopmund Hotel and Entertainment Centre. The forum was chaired by Mr Martin Inkumbi, Chief Executive Officer of the Development Bank of Namibia and was officially opened by Honourable Maureen Hinda-Mbuende, Deputy Minister of Finance and Public Enterprises of the Republic of Namibia.  In her remarks, the Deputy Minister recognised the critical role the DFIs play in the development of SADC economies. She applauded DFIs for timely discussion of the forum theme, especially when economies were recovering from adverse effects of the global Covid-19 pandemic. She advised DFIs to consider more innovative approaches and strategic alignment amongst developmental partners, financial technology and green climate finance mechanism, to strengthen the balancing act while executing the developmental mandate. She also welcomed the meeting as a platform for information, knowledge and experience sharing in the development finance space which would result in the adoption of best practice policy, operational and regulatory environment for national DFIs.

 

On behalf of the President of the African Development Bank, Dr Lufeyo Banda, Chief Operations Officer, delivered the keynote address. The address covered the historic perspective of DFIs, mandate and role of DFIs, financial sustainability and operative strategy of DFIs, among other areas. While acknowledging existing challenges of DFIs balancing developmental mandate and financial sustainability, but with collaborative efforts, the AfDB was optimistic and recommended the DFIs to target finance where it was needed, re-invest profits, support national strategies and have the right mix of public and private sector. With regard to mandates, he highlighted the need for DFIs to avoid mandate creep if they are to continue to get the financial support of government. Also important was that DFIs should consider being regulated especially under the Basel principle.