Honourable Speaker, one of the strengths on which implementation of our National Development Plan rests is the financial health and capacity of our development finance institutions.

At the end of 2013/14, their combined assets amounted to R250 billion, against liabilities of R107 billion. The Development Bank of Southern Africa, the Industrial Development Corporation, the Land Bank and other national DFIs will expand their loan portfolios by about 33 per cent over the next two years, including substantial investments in renewable energy, agriculture, industrial infrastructure and beneficiation projects.

Several initiatives are in progress to strengthen the role of DFIs:

Of special importance is the Land Bank’s collaboration with the Department of Rural Development and Land Reform to bring rural land restitution and redistribution projects to full production. This initiative will build on the Bank’s success in supporting black farmers through its Retail Emerging Markets division, which has financed over 400 projects and created 7 000 employment opportunities to date, without any defaults.

The DBSA will continue to manage the Infrastructure and Investment Programme for South Africa, which is a partnership with the European Commission to strengthen project preparation and co-funding arrangements. It also provides support to the Independent Power Producer Programme, which will be extended to include new generation capacity from hydro, coal and gas sources to complement Eskom’s base-load energy capacity. Co-generation and demand management initiatives are also being supported.

Honourable Speaker, South Africa signed a treaty last year to give birth to a new multilateral development bank to be based in Shanghai, China. We are excited to be part of this new venture, especially given the leverage South Africa will have on resources that will augment our infrastructure investment programme and those of Sub-Saharan Africa countries. The first regional office of the Bank will be located in South Africa.