Press Briefing by Mr. Patrick Dlamini, AADFI Chairman and Chief Executive Officer of DBSA to mark the start of the CEO Forum of the World Federation of Development Finance Institutions (WFDFI)

Press Briefing by Mr. Patrick Dlamini, AADFI Chairman and Chief Executive Officer of DBSA to mark the start of the CEO Forum of the World Federation of Development Finance Institutions (WFDFI)

Date: 2^nd November 2016. Venue GICC Gaborone, Botswana

1. About the Association of African Development Finance Institutions (AADFI)

The Association of African Development Finance Institutions (AADFI) was created under the auspices of the African Development Bank in 1975, and has its Headquarters in Abidjan, Republic of Cote d’ Ivoire.  The Association has over 100 member-institutions involve in development finance activities in Africa. The objectives of AADFI are:

1. To stimulate co-operation for the financing of economic and social development in Africa;
2. To establish among its members’ machinery for systematic interchange of ideas and information on development financing activities;
3. To encourage the carrying out of studies on issues of common interest to development;
4. To accelerate the process of economic integration in the African region.

In addressing these objectives, the AADFI focuses on the following activities:

• Capacity Building,
• Advocacy- development policy advice,
• Information Management,
• Networking & Cooperation.

2. Current issues in African Development and DFI Environment

The AADFI is conscious of the enormous development challenges of the continent- the   infrastructure gap and the huge financial requirements to address this, poverty and social inequality, restiveness in some part of the continent, migration of Africans to other part of the world in search of greener pasture as depicted in the recent migrant crisis across the Mediterranean, among others.

These challenges have also been identified within the context of the Sustainable Development Goals (SDGs) and the African Union Agenda 2063 with a view to articulating strategies to move our continent forward.

As catalyst to development, Development Finance Institutions (DFIs), are focusing action in promoting socio- economic activities that will create jobs, alleviate poverty, address infrastructure challenges and facilitate industrialization. These essentials are key to our development.

The AADFI is aware of these expected roles of DFIs in addressing some of these challenges, and of the view that, it is only efficient and functional DFIs that would relevant in making meaningful contributions to the development of our continent.

3. Prudential Standard Guidelines and Rating System (PSGRS)

That was why the AADFI evolved the Prudential Standards, Guidelines and Rating System (PSGRS) as a tool for reforms and strengthening of our Institutions (DFIs). The PSGRS is one of the flagship achievements of AADFI, developed and adopted in 2008 to strengthen African DFIs to operate with best practices.

It also serves as transformation tool for DFIs and currently used to peer review and rate African DFIs.  The PSGRS assesses DFIs in three key areas of Prudential Standards namely: Governance, Financial and Operations.

It has contributed in strengthening a good number of institutions which now play efficient catalytic role in the continent’s development. In 2009 when we started using the PSGRS to peer review DFIs, only 5 institutions could merit being classified as ‘best performing’, but as at our last assessment in 2015, the number has risen by about 84%.

4. Institutional Building and Capacity Development of professional in DFIs and Stakeholders

The global financial service environment is fast changing. This requires that our DFIs need to adopt to these changes. Critical to this is building capacities of professional in our institutions.   AADFI is convinced that with the right capacity, the challenges of promoting and financing development could be sufficiently addressed. To that extent, the Association believe strongly in building capacity of professionals in DFIs.

5. Nurturing Cooperation among DFIs in Africa and other continents through various platforms for member-institutions to access development assistance and funding.

The Association recognizes the need to work together with other partners in promoting our common development agenda. That is one of the reasons for our gathering in Botswana under the platform of the World Federation of Development Finance Institutions (WFDFI), to learn and share experiences in performing our responsibilities. As we deliberate this week, there would be lessons and partnership to be developed that will support our development activities in our various countries. Lessons from our colleagues from Asia Pacific, Latin America, and Europe and in fact Africa would be useful in moving our various economies forward.

Thank you