The Chief Executive Officers of the SADC DFI Network held a Forum in Walvis Bay, Namibia, on 6th December 2012, under the theme “Development Finance Institutions Credit Rating and the Prudential Standards and Guidelines Rating System (PSGRS) Implementation Challenges”.

The Forum was conducted to explore how Development Finance Institutions can mobilise resources through systematic diagnostic reviews of their operations, and undertaking appropriate policy measures that make them attractive investment opportunities for international financiers and other stakeholders. The workshop used the Prudential Standards and Guidelines rating System (PSGRS), approved by the Association of African Development Finance Institutions (AADFI) and the African Development Bank, as well as other credit-worthiness assessment techniques as a basis for undertaking this analysis.

The workshop provided a framework for assessing the performance of the DFIs in terms of the key standards that are considered critical for the DFI to function as a viable entity contributing to the development agenda of the country in line with the mandate given to it by public authorities. The workshop also examined case studies in the SADC DFI Network of how the PSGRS and creditworthiness models have been used as an instrument for enhancing capacity in the DFIs for mobilizing resources for on-lending, and as a basis for application of these constructs in other institutions. 

The workshop was officially opened by Honourable Saara Kuugongelwa-Amadhila, Minister of Finance of the Republic of Namibia. In a speech read on her behalf by Mr. I-Ben Natangwe Nashandi, Deputy Permanent Secretary in the Ministry of Finance. Ms. Kuungongelwa-Amadhila recognized the strategic role that development finance institutions played in the national development al process. She urged closer interaction between the institutions to enhance development finance, promote regional integration and strengthen regional development.

Thirty-five (35) delegates from the SADC DFI Network attended the workshop.  The presentations were well received.  There was a general understanding that it was advisable to implement the PSGRS in the Network, and that DFIs should be encouraged to pursue Credit Rating to realize the benefits of techniques and practices.

The resource persons were drawn from the SADC DFI Network, DFRC and private sector partners. The following were the presenters together with the papers they presented.

1. Mr. Stuart Kufeni, Chief Executive Officer, SADC Development Finance Resource Centre, Botswana – Resource Mobilization Challenges of the Development Finance Institutions,
2. Dr. Herrick Mpuku, Programmes Manager, SADC Development Finance Resource Centre, Botswana – Foundations of Prudential Standards and Guidelines Rating System (PSGRS) and its Applications to the Development Finance Institutions,
3. Mr. Tshepo Ntsimane, Business Relations Manager (Treasury, Capital Markets), Development Bank of Southern Africa, RSA –  Credit Rating and Resource Mobilisation for Development Finance Institutions,
4. Mr. Martin Inkumbi, Head of Lending, Development Bank of Namibia – Prudential Standards (PSGRS) and its Application to Development Finance Institutions,
5. Mr. Stanley Matsebula, Managing Director, Swaziland Development and Savings Bank – Prudential Standards (PSGRS) and Resource Mobilisation for Development Finance Institutions,
6. Mr. Dumisani Msibi, Managing Director, Swaziland Development Finance Corporation – Prudential Standards (PSGRS) and Capacity Building for Development Finance Institutions (Not presented),
7. Mr. Charl Kocks, Chief Executive Officer, Ratings Afrika, RSA – A Comprehensive Analysis of the PSGRS and International Credit Rating Assessment of Development Finance Institutions,
8. Mr. Tetsuya Fukunaga, TICAD Advisor to Development Bank of Southern Africa, Japan International Cooperation Agency – Progress on DBSA-JICA’s Africa-Asia DFI Networking.

Mr. Vinson Hailulu, DFRC Board Chair and Chief Executive Officer  of the National Housing Enterprise (Namibia) officially closed the workshop by commending the presentations and deliberations of the workshop, and urged member institutions top study and make use of the tools discussed that would contribute to the improved performance of their organisation.