Finally the NGO's tasked and funded to develop and support small business in South Africa will have someone to answer to. After millions of Rands have been spend with few results evident, the national treasury have decided to tighten the noose.

If any of our readers have actually bennifited from these initiatives, please let us know the good news!!

Ben



Linda Ensor reports from Cape Town:

The national treasury is to undertake a review of the 13 development finance institutions in the country to ensure their activities are better co-ordinated and more aligned with the economic and social development objectives of a developmental state.

The department has called for consulting firms to submit expressions of interest in undertaking the review.

The review is based on a cabinet decision that ways be sought to enhance the delivery of the institutions and harness their activities behind the Accelerated and Shared Growth Initiative for SA, being piloted by Deputy President Phumzile Mlambo-Ngcuka.

Development institutions such as the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC), Khula Enterprise Finance, the National Empowerment Fund and the range of institutions involved in small business development have played an important role in the roll-out of infrastructure in the country's poor communities.

"The exercise is aimed at ensuring that the mandates and operations of development finance institutions are co-ordinated and that (they) utilise economic resources more effectively and with greater efficiency in support of government's policy objectives," the treasury said.

But Finance Minister Trevor Manuel says more can be done and that development institutions should be galvanised to bolster developmental and poverty alleviation programmes. This includes empowerment.

Writing in the DBSA's last annual report, Manuel said the bank needed to support government's housing initiatives to provide water, sanitation and electricity and strengthen the capacity of local governments to deliver services.

This would assist in reducing the divide between the first and second economies, he said.

The DBSA approved R4bn in investments in 2004-05 which were expected to create an estimated 36475 jobs.

Last year the IDC approved 150 financing transactions involving R4,2bn, which facilitated investments of more than R12bn. It estimated that 26000 direct jobs would be created through its financing activities in the period.

SA's development finance institutions have underpinned SA's foreign policy objectives in Africa by getting involved in projects linked with the New Partnership for Africa's Development.


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