OVERVIEW OF ANNUAL REPORT PRESENTED TO THE PCOF / NCOP SC Mr. M S V Gantsho

1. OVERVIEW OF ANNUAL REPORT PRESENTED TO THE PCOF / NCOP SC Mr. M S V Gantsho (Managing Director and Chief Executive DBSA) PROMOTING SUSTAINABLE DEVELOPMENT BEYOND THE WORLD SUMMIT

2. Overview • The DBSA’s Mandate • Sustainable Development • DBSA Approach • Pillars: Planet • Pillars: Prosperity • Pillars: People • Performance Overview • Conclusion

3. The Mandate of the DBSA • Vision is to be a change agent for socio economic development in Southern Africa • Contributes to sustainable development by mobilizing resources to build foundations for economic growth and delivery of basic services • Plays a triple role of Lender/Investor, Advisor and Partner for development • Sustainable Development Impact is the goal of Bank’s operations • Financial strength is the means towards this goal

4. Sustainable Development • Historically, the understanding: • Focused on saving the earth for future generations • Did not emphasise social realities • Since the 1992 Earth Summit in Rio, to be sustainable, development must • contribute to economic growth, • protect and restore ecological systems, and • improve people’s lives

5. Pillars of Sustainable Development • Concept has thus come of age, and now rests on three ‘Ps’ • Prosperity, i.e. economic efficiency and growth • People, i.e. poverty alleviation and betterment of quality of life • Planet, i.e. protection and restoration of the ecological systems

6. The DBSA Approach • For DBSA, sustainable development is not just a paradigm or concept, it is a core value system of our business • Project appraisal process addresses following dimensions: • Economic • Social • Environmental • Institutional • Financial • Technical • Support to clients in removing constraints and enhancing development impact

7. The Three P’s : PlanetDBSA Support • Environmental appraisal module not only assesses risks but explores means to mitigate and manage risks • Assists borrowers to build environmental management and monitoring capacity • Contributes to environmental policy formulation and implementation

8. The Three P’s : Planet DBSA Support • Partnerships to support innovative solutions: • Partnership with Eskom : renewable energy demonstration project on DBSA premises • Partnership with KfW to test wind energy • Agency Agreement with World Bank Prototype Carbon Fund • Participation in policy initiatives: • Multilateral Financial Institutional Group on harmonisation of environmental guidelines • UNEP initiative to develop guidelines on reporting and management for financial sector

9. The Three P’s: ProsperityDBSA Support • All projects must have a positive economic impact: • Contribution to GDP • Employment Creation • Capital Utilisation • Income generation by households • Overall results for 2001/02: • GDP impact: R8,9 billion • Estimated 43 000 jobs to be created • Estimated contribution to low income households: R1,1 billion • For every R1 of DBSA investment, R3,30 mobilised from other sources

10. The Three P’s: PeopleDBSA Support • Bank’s project appraisal addresses four key issues: • Quality of life • Empowerment • Gender equity • Human capital formation • Impacts measured: • Access to basic services • Households expected to benefit • Economic opportunities • Improved health standards • Creation of training and employment opportunities (including gender) • Involvement of local and emerging contractors

11. DBSA Performance Overview

12. DBSA Performance Overview

13. Conclusion • The DBSA remains on a solid foundation • Financial strength • Development impact • Establishment of dedicated Development Fund that enhance capacity building role • Short term strategic thrusts (“quantum leap”) and longer term vision (Vision 2010 significant growth in operations and development impact.

14. SHUN THE INCREMENTAL GO FOR THE QUANTUM LEAP

15. www.dbsa.org Thank you! Building foundations for development…….