Page 60 - 41st Summit Brochure

infrastructure projects in energy, transport, ICT and Institutions against the PSGRS. A total of five SADC
transboundary water. This directly supports the DFIs have been rated among the top and these are
region’s integration and industrialization efforts as the Development Bank for Southern Africa (DBSA),
well as trade in goods and services; and helps to the Botswana Development Corporation (BDC), the
improve the quality of life of its people by improving Infrastructure Development Bank of Zimbabwe
access to infrastructure services. (IDBZ), the Export Development Fund of Malawi;
At end March 2021, the PPDF had approved a and the Agricultural Bank of Namibia
total of US$20.9 million (after savings and (AGRIBANK).
cancellations) for the preparation of 11 regional
projects covering energy, transport and water Macroeconomic Stability and Convergence
sectors, which are expected to generate at least US$3 An assessment of economic performance for 2020
billion in infrastructure investment. This has a huge and progress on the implementation of peer review
potential of unlocking business opportunities across recommendations was conducted in July 2021. In
the “infrastructure value chain”, not just in advisory addition, the impact of the COVID-19 pandemic on
services, but also financing, construction, equipment economic performance was also reviewed.
supply, technology and skills as well as operations According to preliminary estimates, the number of
and maintenance. Member States that achieved the primary targets
The 11 regional projects are: Second Alaska (inflation, fiscal deficit and public debt) declined to
Sherwood (Zimbabwe); Rehabilitation and upgrade two in 2020 (Madagascar and United Republic of
of the North South Rail Corridor (South Africa, Tanzania) from five in 2019 (DRC, Madagascar,
Zimbabwe, Zambia and DRC); Kasomeno -Mwenda Lesotho, Seychelles and Tanzania). This is largely
Toll Road (Zambia); Angola-Namibia Transmission due to the effects of the COVID-19 pandemic which
Interconnector 1 (Angola and Namibia); Mulembo resulted in unprecedented economic decline coupled
Lelya Hydro Electric Power (Zambia); Africa Green with high fiscal deficits and public debt due to high
Co projects (all Member States); Development of pandemic related expenditures while the revenue
Guidelines and Standards for Renewable Energy base contracted.
Projects and a Funding and Incentive Strategy The peer reviews were conducted in March
Project (Mauritius); Angola -Namibia Transmission 2021 despite restrictions on travel. A total of seven
58 Interconnector 2 (Angola and Namibia); Lomahasha Member States were involved in the peer reviews
which were conducted virtually. Zimbabwe,
- Namaacha Cross Border Water Supply (Eswatini
and Mozambique); Kazungula Water Supply and Namibia and Angola were reviewed by Malawi,
Sanitation Project (Zambia); and Mauritius Mauritius and a joint team from Mozambique and
Wastewater Pumping Station and Wastewater Eswatini, respectively.
Treatment Plant (Mauritius).
The status on signature and ratification of the Investment and Tax Related Matters
SADC Regional Development Fund (SADC RDF) SADC Regional Action Programme for Investment
has not changed. A total of nine Member States have Implementation of the SADC Regional Action
signed the Agreement -- Angola, DRC, Eswatini, Programme for Investment (RAPI) was reviewed in
Lesotho, Malawi, Mozambique, Tanzania, Zambia February 2021 by the SADC Investment
and Zimbabwe. None of the Member States has Subcommittee. RAPI is aimed at establishing a
deposited instruments of ratification with the conducive environment to attract both domestic and
Secretariat. In order to advance the Foreign Direct Investment (FDI) into the region.
operationalization of the SADC RDF, the SADC Most of the investment treaties have been affected
Secretariat is in the process of recruiting a by the COVID-19 pandemic, as such, through Peer-
consultancy firm to recommend on the full to-Peer Learning Mechanism the Member States
operationalisation of the Fund. The consultancy exchanged information on how and why investment
assignment will review Member States’ challenges in treaties and laws can lead to potential Investors-
ratifying the SADC RDF Agreement as well as States Dispute Settlement (ISDS) claims against
proposing suitable approaches for fast-tracking the governments in the wake of the crisis and proposed
operationalisation of the fund. options to mitigate such risks.
Since the adoption of the Prudential Standards,
Guidelines and Rating System (PSGRS) by the SADC Business and Investment Promotion
SADC Development Finance Institutions (DFI) Strategy
Network;, and the subsequent endorsement by Development of a SADC Business and Investment
Ministers in 2015, the SADC-DFRC has ensured Promotion Strategy (BIPS) was finalized in 2020. The
implementation of the programme by providing for SADC BIPS will allow SADC to explore opportunities
DFI self-assessment and peer review on an annual to showcase its programmes and regional projects to
basis. A total of 35 SADC DFI’s have participated in various key decision-makers from around the world
the exercise since its inception. SADC DFIs who are willing to engage in sustainable partnerships;
Network, at its meeting in December 2020, and further benefit from a variety of features aimed at
considered compliance of Development Financial facilitating strategic networking and promoting