1. 11 DBSA Siyenza Manje Programme Presentation to Parliamentary Committee 17 August 2010

2. Outline of the Presentation  DBSA Mandate and Strategy  DBSA Development Fund - Key Programmes  Socio-Economic and Institutional backlogs  Challenges in Municipalities  Siyenza Manje Programme Overview National Distribution of Experts SM Expenditure Capacity Deployment Areas  Municipal Support Initiatives through Siyenza Manje  Summary of Outputs and Impact Achieved 22

3. Mandate: DBSA Act 1997 To promote economic development and growth, human resources development and institutional capacity building in the region, and To support sustainable development projects and programmes in the region Provision of financing for infrastructure development to eradicate backlogsFacilitation of economic growth and social development Technical support to remove constraints and build development capacityAdvice, information to promote development solutions DBSA Mandate and Strategy 33

4. 2007 onwards Financier, Partner, Advisor, Implementer & Integrator 2001-2006 Financier, Partner & Advisor 1995-2001 Financier & Partner The DBSA’s Evolving Role - Strategic Overview Conduit of Public Finance/ Govt Agency for Homeland s 1983-1994 44

5. Products and Services:  Expertise: Mobilisation and deployment of engineering, planning and financial experts to implement non-technical and technical infrastructure projects  Grant funding: Provision of grants to projects that build sustainable capacity in people, processes and systems at municipal or community level  Development facilitation: Technical support and sharing of knowledge  Local economic development initiatives: Development of local and regional economies by supporting catalytic projects; development and implementation of economic turnaround strategies Key strategic issue: Institutional Failure/Weakness Development Fund Mission, Products and Services DF Mission: “ To capacitate municipalities and communities for effective service delivery and economic development in order to improve the quality of life of people of Southern Africa” DF Vision: “To be a leading catalyst in municipal capacity building in order to maximise the impact of development finance in South Africa”

6. Development Fund Key Programmes DBSA DF Siyenza Manje Vulindlela & PACBP Agencies Rural Development Community Development Facilitation Build institutional capacity through the deployment of artisans, young professionals and experts in finance, engineering, project management and town planning to South African municipalities, to transfer skills and implement projects to eradicate backlogs Build human capacity within public sector institutions notably municipalities through short and long term accredited training courses in planning, management and finance Assist donors and development partners to implement development initiatives using DBSA Corporate infrastructure Assist rural local municipalities to prepare & implement institutional and economic turnaround interventions to catalyse economic growth Mobilise stakeholders towards common development priorities in order to build sustainable communities 66 Capacity Development and Deployment

7. Socio-Economic and Institutional Backlogs 77 Source: State of Local Government Report 2009

8. Challenges in Municipalities  Insufficient funds for projects to address infrastructure backlogs;  Lack of efficient financial management and billing systems;  Low revenue base;  Non-compliance of supply chain management and procurement processes;  High vacancy rates/turnover rate in key positions;  Inadequate performance management of municipal officials;  Unstructured communication and lack of constant information feedback to communities;  Lack of planning capacity;  Unresolved land claims; and  EIA’s slow approval. 88

9. Siyenza Manje Programme  Siyenza Manje was conceptualised to support Government’s hands-on capacity building initiatives  Siyenza Manje Objectives:  To deploy capable human resources in municipalities with the purpose of building institutional and human capacity and unlocking service delivery blockages  To enable distressed municipalities deliver basic services by unblocking and fast tracking expenditure of Municipal Infrastructure Grant funding.  In aligning with Government programmes, Siyenza Manje deployment strategy prioritised:  Low capacity category B and C municipalities with water & sanitation infrastructure backlogs  Municipalities with low MIG expenditure  Deployment in municipalities with financial management challenges identified by Provincial Treasuries and CoGTA. 99

10. Siyenza Manje Programme Overview Municipal Deployments Training of Municip al Officials Vulindlel a Academ y Courses Grant Funding Young Professio nals Artisans Deploymen ts in Sector and Line Departmen ts Operation s & Maintena nce 1010

11. Siyenza Manje Programme National Distribution of Experts 1111

12. Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level  Ninth Outline LevelClick to edit Master text styles  Second level  Third level  Fourth level » Fifth level 18/10/2007Proposed Siyenza Manje Upscaling Development Fund/cnm B4 - Local municipalities which are mainly rural with communal tenure B3 – Local municipalities with small towns and relatively small populations  EC, KZN and LP have the highest number of rural municipalities supported through SM (80% of deployees in rural municipalities) Siyenza Manje National Coverage Low Capacity Municipalities- B4, B3 1212

13. 1313 Siyenza Manje Programme Deployment of Experts

14. Siyenza Manje Expenditure (Rand Millions) 2006/072007/082008/092009/10TOTAL Total Siyenza Manje Expenditure42.2121.3313.3456.6933.4 Funded by: DBSA (30%)42.236.494.0137.0309.6 National Treasury (70%)84.9219.3319.6623.8* National Treasury transfer-168.9190.5323.7683.1* *The amount unspent from National Treasury is utilised in the 2010/11 FY

15.  Finance - financial planning, financial reporting, audit management, revenue enhancement, debtor management, systems compliance  Technical – Planning and implementation of MIG/CAPEX funded infrastructure projects, construction /rehabilitation of water, sanitation, roads and housing infrastructure, labour intensive technologies, project management, operations and maintenance  Planning – credible IDPs, LED plans, development or refinement of spatial development frameworks and land use management schemes  Institutional Capacity Building - training and on-the-job skills transfer, development of systems/policies/procedures, compliance to supply chain processes  Institutional Turnaround - governance and change management specialist.  Finance - financial planning, financial reporting, audit management, revenue enhancement, debtor management, systems compliance Technical – Planning and implementation of MIG/CAPEX funded infrastructure projects, construction /rehabilitation of water, sanitation, roads and housing infrastructure, labour intensive technologies, project management, operations and maintenance Planning – credible IDPs, LED plans, development or refinement of spatial development frameworks and land use management schemes Institutional Capacity Building - training and on-the-job skills transfer, development of systems/policies/procedures, compliance to supply chain processes Institutional Turnaround - governance and change management specialist. 1515 Municipal Deployments

16.  Main objective of the YP programme is to coach and mentor the YPs for professional registration and to build sustainable municipal capacity  3-year structured training programme: Engineering YPs for registration with ECSA, Finance YPs preparation for a municipal finance qualification (NQF6) Planners for registration with SACPLAN  Currently there are 156 YPs, 9 already absorbed full time by municipalities.  Apprentices deployed in municipalities - bricklayers, plumbers, fitters water works, electricians, motor mechanics  Training towards trade certification.  Main objective of the YP programme is to coach and mentor the YPs for professional registration and to build sustainable municipal capacity 3-year structured training programme: Engineering YPs for registration with ECSA, Finance YPs preparation for a municipal finance qualification (NQF6) Planners for registration with SACPLAN Currently there are 156 YPs, 9 already absorbed full time by municipalities. Apprentices deployed in municipalities - bricklayers, plumbers, fitters water works, electricians, motor mechanics Training towards trade certification. 1616 Young Professio nals (YPs) Artisan Program me

17.  Skills training and capacity building programmes for municipal officials and councillors  Focus: Finance, Planning, LED, Management and Leadership  VA focuses 80% South African Market and 20% SADC  ICT – LGNET connection for municipalities  1st South African host of the World Bank Global Development Learning Networks (GDLN) – facility available for hire.  Skills training and capacity building programmes for municipal officials and councillors Focus: Finance, Planning, LED, Management and Leadership VA focuses 80% South African Market and 20% SADC ICT – LGNET connection for municipalities 1st South African host of the World Bank Global Development Learning Networks (GDLN) – facility available for hire. 1717 Vulindle la Academ y

18. Municipal Support through Siyenza Manje Finance Initiatives:  Assist in municipal compliance with MFMA reporting  Ensure improved financial planning and management  Deployment at National and Provincial Treasuries, mainly to follow up on audit queries with municipalities, managing municipal Cash flow management reporting  Assisting municipalities in setting up financial management and billing systems to improve revenue collection Planning Initiatives:  Improving town and spatial planning  Improving development of IDPs Technical Initiatives:  Assisting Municipalities spend MIG/CAPEX and reduce infrastructure backlogs  Ensuring completion of Technical infrastructure projects  Siyenza Manje technical deployees are assisting municipalities reduce the non-revenue water losses to enhance revenue Institutional Development:  Ongoing on the job skills transfer and capacity building by Siyenza Manje deployees to municipal officials.  Grant Funding for Technical Assistance for the development of systems, plans and policies. 1818

19. Other Key Support Initiatives  Operations and Maintenance - programme is aimed at providing capacity support and facilitation of sustainable operation and maintenance of municipal infrastructure. Emphasis on operations, routine and periodic maintenance on water, sanitation, roads, electricity and solid waste infrastructure Use of labour intensive methods and local resources for execution of O&M projects e.g. SMME contractors, women, youth and community cooperatives Efficient utilisation of existing O&M funding streams and mobilisation for more funds DBSA DF to support pilot municipalities with the capacity to plan, organise, implement and manage infrastructure operations and maintenance sustainably Provision of technical support to pilot municipalities by deploying experts and artisans for the management of infrastructure O&M projects Training and capacity building of both municipal officials and SMME Contractors for O&M sustainability.  Artisan Programme - objectives of the Artisan programme is the creation of a pool of qualified artisans for deployment in municipalities with critical O&M skills shortages. Apprentices in Bricklayers, Plumbers, Fitters Water work, Electricians, Motor Mechanics-Fleet Maintenance. 1919

20. Other Key Support Initiatives…….  Water and Waste Water Treatment Works - collaborating with DWA and COGTA on the assessment and refurbishments of Water and Waste Water Treatment Plants country-wide.  Water Demand Management - collaborating with the Swedish International Development Agency to improve WDM in the entire SADC Region. he DF is part of the Gauteng Water Conservation and Water Demand Management task team to assist Gauteng municipalities to reduce current water demand by 15%.  Bulk Infrastructure DWA regions - experts are deployed at DWA regional offices to provide technical support with respect to address technical reports, review consultants designs, ensure correct project prioritisation, implementation and monitoring.  North West Water and Sanitation Programme - preparation of a total of 60 water and sanitation project business plans to assist municipalities with project preparation.  Strengthening DWA Water Trading Entity - The intervention will contribute to the revision of the pricing strategy, funding model for operations and maintenance of infrastructure assets and strengthening institutional & financial capacity of WTE. 2020

21. Siyenza Manje Development Outputs and Impact Outputs 2007/08 FY2008/09 FY2009/10 FY Actual Number of people trained on the job finance1435211,008 Number of people trained on the job - Technical3381,0871,025 Number of finance & infrastructure management systems developed & reviewed 68262544 Number of municipal policies developed, reviewed and implemented 283201489 Number of municipalities and departments that benefit from SM institutional capacity building initiatives 155172217 Percentage of SM municipalities with improved audit statusN/A 32% % of SM municipalities that complied with MFMA s71 and s74 reporting 73% MIG/CAPEX and infrastructure grants expenditure facilitatedR2.57bnR4.8bnR8.9bn Number of infrastructure projects facilitated1,6052,7783,825 Number of infrastructure projects completed2817691,237 Number of households benefiting from water projects271,667276,382613,218 Number of households benefiting from sanitation projects132,921138,976513,914 Number of jobs created13,20318,76764,869 2121

22. Thank You 2222