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6/3/11

Select Committee of Finance

Briefing by DBSA on the 2009/10 Annual Report 31 May 2011

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Build human & institutional capacity

Promote broad-based growth, job creation, cooperation, integration & prosperity

Serve as centre of excellence: development effectiveness & good governance

Engender sustainability, external and internal

External

• Siyenza Manje Programme • Sustainable Communities Programme• Infrastructure funding• 26 region profiles (144 municipalities)• Health and Education Roadmap implementation• Research papers• Regional integration initiative• Resource mobilisation – Agencies• Vulindlela training

Internal

• Updating Vision 2014• Sector strategies• Integrated Reward Recognition• Enhanced credit analysis capabilities• Top 10 Operational Risk Report

Major planned initiatives

Co-deliver social & economic infrastructure

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Goals Initiatives and programmes

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Build human & institutional capacity

Promote broad-based growth, job creation, cooperation, integration & prosperity

Serve as centre of excellence: development effectiveness & good governance

Engender sustainability, external and internal

External • Policy engagements on strategic issues:

o Support State in planning and performance improvement strategies

o Developmental State Conference o DBSA mandate areas: local government, rural development,

energy, public transport, higher education & training, basic education, health, environment, economic development

o Active DFI Forum and planning collaboration• Operations and maintenance programme• Comprehensive Rural Development Programme• Front-loading of municipal infrastructure grants• Support for the energy sector• PPP for the health sector• Southern Africa Energy Conference• Local Government Turn around strategy support• Pan African Capacity Building initiative• Capital investment fund with DFID

Internal

• Revised capital structure of the DBSA • Subsidiarisation of International Division• Expansion of DBSA facilities – Entrance and Vulindlela

Major additional initiatives

Co-deliver social & economic infrastructure

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Goals Initiatives and programmes

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National distribution of municipalities supported by Siyenza Manje

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Deployees categorised by expertise and municipalities supported

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N u m b e r o f m u n i c i p a l i ti e s a n d d e p a r t m e n t s s u p p o r t e d

86

155

205 217

0

50

100

150

200

250

FY -2007 FY -2008 FY -2009 FY -2010

SM deployee support

maintained and grown

141 municipalities on direct deployment and 58 on shared services basis

supported.A further 18 provincial

departments supported.

N u m b e r o f d e p l o y e e s

020406080

100120140160180200

T e c h n i c a l F i n a n c i a l P l a n n i n g Y o u n gp r o f e s s i o n a l

A r ti s a n s

2006/7 2007/8 2008/9 2009/10

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M I G / c a p e x a l l o c a ti o n u n l o c k e d

2.3

4.5

7.9

15.7

0

3

6

9

12

15

18

R b

illio

n

2006/07 2007/08 2008/09 2009/10

MIG/capex unlocked and MIG expenditure facilitated by Siyenza Manje deployees

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MIG funds unlocked of R15.7 billion and MIG expenditure of R8.9 billion

M I G e x p e n d i t u r e u n l o c k e d

1.1

2.6

4.8

8.9

0

1

2

3

4

5

6

7

8

9

10

R b

illio

n

2006/07 2007/08 2008/09 2009/10

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Number of delegates trained through Vulindlela training academy

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Increasing momentum in

human capital

capacity build

ing

• 11 366 external learners trained during the financial year• 7 361 of the delegates were identified by Siyenza Manje deployees• 53% of Siyenza Manje municipalities benefited from the training programmes

2,800

5,857

7,361

144513

4,005

2,944

6,370

11,366

-

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010F i n a n c i a l y e a r

Municipal C ouncillorsand Officials (S A)

DF I's/S ADC

T otal

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Total value of DBSA’s interventions

Total financial value of DBSA’s disbursements, development expenditure and MIG funding unblocked through Siyenza Manje

0

2

4

6

8

10

12

8

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Diversity of loan book portfolioas at 31 March 2010

Significant support to municipalities

Funding of both social and economic infrastructure

through public sector intermediaries

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Value of net loan book – R33bnOther intermediaries

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Financial position

Financial position remains healthy. Income earning assets grew by 13% to R36.2bn. Total assets up 12% to R45.1bn

The non-performing book debt as a % of total remains managed at 4.9% (2008/09: 5.4%) despite increased risk

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Profit before transfer to DF & Sustainable earnings

Given the economic and market conditions set out earlier, profit and sustainable earnings came in at a solid R963m and R823m respectively.

The effect of management and financial initiatives helped to maintain these amounts to respectable levels.

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Sustainable earnings

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Market perception of the DBSA image in development finance

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Source: Independent external market perception survey (Ipsos Markinor)

Overall Service Interaction

81 86 87

Overall Perception Rating Overall CSI

Indicative increases noted on Dashboard measures for DBSA.

Overall 2009/10 Rating = 4.3 out of 5

Overall 2008/09 Rating = 4.3 out of 5

The overall perception of the DBSA in its market, is favourable particularly amongst its Customers (clients, stakeholders and partners). Two thirds of competitor users

have a good perception of the brand.

Enhancing DBSA organisational capability to deliver – staff training

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F i e l d s o f t r a i n i n g i n t e r v e n ti o n s

Primary20%

Specialist43%

Foundational20%

Leadership and management

17%

79.5% of staff attended 1 707 training interventions

• Primary: Financial, economics, commerce, development planning administrative and secretarial training.

• Specialist: Information technology, legislation and compliance, risk management, corporate and project finance, social analyst training.

• Foundational: Business communications and report writing, research investment, consulting, process skills , technical, personal growth training.

• Leadership and management: Personal growth, management and leadership development training

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Thank you for your support!

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