PARTNERING APPROACHES THE NBF EXPERIENCE By Thabani Myeza November 2007

1. PARTNERING APPROACHESTHE NBF EXPERIENCEBy Thabani MyezaNovember 2007 www.nepadbusinessfoundation.org

2. What is NEPAD? • New Partnership for Africa’s Development • Initiated by 5 African countries : Algeria, Egypt, Nigeria, Senegal & South Africa • Focus issues : • poverty alleviation • Under development of African countries • Marginalization of Africa from the global economy • Radical intervention by African leaders for a new vision of Africa’s renewal • NEPAD is a reform and transformational agenda that provides a vision, principles and priorities as a guiding framework for countries, leaders, regions and continental organizations to follow. • NEPAD is a program of the African Union

3. NEPAD Secretariat e-Africa Commission (ICT) NEPAD Business Foundation Agriculture African Union Education & training Energy Infrastructure Transport Water & sanitation Environment & tourism Gender & civil society Science & technology Human development Health NEPAD Structure

4. Background • The NEPAD Business Foundation (NBF) was formed in 2002 and endorsed in 2003 as the NEPAD Business Group. The NBF was registered as a section 21 non-profit company, in October 2004. The organisation, endorsed by President Thabo Mbeki and Professor Wiseman Nkuhlu, representing the NEPAD African Secretariat, is currently chaired by Dr. Reuel Khoza. • The NBF also recently announced the appointment of Lynette Chen as a full-time Chief Executive Officer. • Under the strong leadership, the NBF hopes to establish a platform for business to understand the principles of NEPAD and to effectively engage in NEPAD initiatives from a private sector perspective.

5. NBF Vision and Mission • The NBF envisages an African powerhouse that utilizes all its resources to generateinnovative economic growth that engenders socio-political stability and sustainable livelihood for all its people on par with global standards. • The NBF’s mission is to create a platform for dialogue between the private andpublic sectors, ultimately creating a more sustainable business environment in Africa. The various sector heads within the NBF embark on projects on a voluntary basis and there are various initiatives being undertaken to achieve the NBF’s goals.

6. Strategic objectives • Promote an enabling environment for sustainable and profitable enterprises. Advocate appropriate and sustainable aid and trade relations and promote the creation of an optimal trade environment on the African continent; • Promote the development of Africa’s human and natural resources for sustainable growth and development; • To be a catalyst for NEPAD related business opportunities; • To facilitate and coordinate activities across sectors; • To be a respected, well-funded, well-resourced and well-structured organisation which provides access to relevant global information and networks to enable enhanced business opportunities and adds to the Voice of African business • Promote and advocate the development of business best practice standards throughout Africa; and • To collaborate and integrate with relevant organisations across the globe.

7. BOARD MEMBERS Dr. Reuel Khoza – Chairman Lynette Chen – Chief Executive Officer Stanley Subramoney - PWC Geoff Rothschild - JSE Cas Coovadia – Banking Council of SA Futhi Mtoba - Deloittes Russell Loubser - JSE Nozipho January-Bardill – MTN PATRONS Graca Machel Sir Sam Jonah Lazarus Zim NBF Executives

8. NBF Founding Partners • Eskom • MTN • Transnet • Anglo American • Old Mutual Supporting partners : Rand Water (resources) PWC (accounting services) HP (resources, equipment, website) JSE (support services) Deloittes (consulting services) KPMG (auditing services) E&Y (accounting services)

9. NBF Sectors

10. Project delivery : Cross-sectoral collaboration • Infrastructure sectors : • Energy • Water • Infrastructure • ICT • Transport • Banking • Legal & accounting : • Audit & accounting • Legal

11. NBF programmes • Membership – interactive networking sessions, information, projects • Cross-sectoral collaboration – Project Management Office to ensure project delivery • Partnerships – NEPAD Secretariat, government (DTI, DFA, Treasury, DPSA), African Development Bank, Development Bank of SA, G8 Ambassadors, chambers of commerce, Pan African Infrastructure Development Fund (PAIDF), SADC Banking Association, Enablis, World Economic Forum. • Programs – • NBF African Leadership Programme • NBF Business Guide • NBF Water Initiative • NEPAD Projects Conference • Trade and Investment Village • Women in Trade Conference • Trade missions • Research

12. Partnering Approaches – Water Network A concept in the making

13. Partnering Approaches • Main focus areas: • Understanding the issues in the water sector • How they impact on business and vice versa • Interest based debates • Business interest / contribution including environmental issues • Growth issues • Water Network • A loose network with multi-stakeholder interest • Key objective of bringing public and business issues to the same discussion table • An attempt to find common goals between business and growth objectives with social balance • Process issues

14. Partnering Approaches “Success in the water industry requires both management and development of water resources infrastructure – because we need both to sustain our future” “The management challenge is not a vision of integrated water resources management but a “pragmatic but principled” approach that Respects principles of efficiency, equity (in distribution of water resources), And sustainable while recognizing that water resources management is Intensely political and that any reform requires articulation of prioritized, sequenced, practical and patient interventions” Source: World Bank

15. Partnering Approaches • The objective has been to catalyze ideas for multi-stakeholder infrastructure projects and shape them into well-developed, bankable project propositions, complete with champions and financing plans. • …..using a multi-stakeholder approach… • …and demonstrating how these networks work in practice to develop a project pipeline that enhances industrial growth and improves social access to water • …and maintaining a cross-sectoral view and capitalising on the synergies.

16. Partnering Approaches – the rationale • The underpinning hypothesis to catalyzing multi-stakeholder collaboration on sustainable water resources development projects are: • Water projects designed to provide water for both economic growth (industry) and water for human needs can better avoid the conflicts • That it is difficult to bring together governments (national and local), industry (national and multinationals), civil groups and NGO’s and the development community to conceptualise and develop such integrated water projects • The shortage of bankable projects……..? • The formation of multi-stakeholder networks ……is it the answer?

17. Partnering drivers – the base • These approaches use existing information as the base for project identification: • Spatial development zones or development nodes • Key economic activity potential – mining, power generation or agriculture with a great need for water • Inadequate water resources – limiting development potential • Bankability of a stand alone water project is questionable

18. Partnering Approaches – The Partners • The cross section of network members includes: • Private sector in various forms: consulting engineers, water service providers,etc • Mining houses and the chamber • Large water users: chemical industry and energy • Local, Provincial and National government representatives • Funding organisations • Development Agencies • As one moves towards local projects – communities and NGO

19. Partnering Approaches - challenges • Lack of trust amongst parties • Differing agendas • Private sector entities playing their cards to close • Lengthy but necessary consultation process • Too high level – need for local networks • Lack of formal structure • Getting parties to think about water in the same way – “some for all and not all for some” • The ever escalating costs as decisions are delayed

20. Partnering Approaches – Key Lessons • The business agenda can be harnessed positively for project delivery • Business as anchor clients for project bankability • The roles are different but the interests have a common thread (growth and development) • Its not just about mining, power generation its about all necessary (sustainable) infrastructure – catering for all the needs along the way. This can only be achieved if all stakeholders are involved and playing their part. • Balancing the act is always going to be difficult • A proactive approach is far better • Water is and has always been an engine for development – its not new • Political support and local and central level for such projects – including political sensitivity • Action takes place at local level (SA) • The Initiative needs a permanent home base

21. Partnering Approaches – Key Lessons • Business by its nature is impatient • A lot of good work has been done by organisations such as The DTI (SA) – but is is not water focused • Packaging of projects is still a challenge

22. Thank you. Thabani Myeza Water Sector Head (Interim) NEPAD Business Foundation