Hon Chair, the Development Bank of Southern Africa, DBSA, predates our democratic dispensation. Beginning in 1983, the bank promoted economic growth, human resource development, institutional capacity- building and infrastructure creation. After 1996, the new government and the new Constitution required the transformation of the role and function of the bank.
Its area of operation, after 1996, encapsulated all of the Southern African Development Community, SADC, countries. Government reconstituted the Bank to promote, facilitate and fund socioeconomic development in the Southern African region.
Government now believes that it is time for the bank to extend its operation beyond the SADC. This Bill will make it possible for the Bank to operate in other countries in Africa as well as on the oceanic islands.
The bank will therefore have to increase its authorised share capital. Its new mandate will enable the bank to participate in large-scale infrastructure and other strategic projects on the African continent in order to enhance trade.
The bank will support the binational commissions that are in place in order to achieve regional integration. Cope can't argue with the expanded aims and objectives of the Bill. What we are wary of, however, is the general lack of accountability and financial control in all of the institutions in which government has a say.
Banks all over the world are under scrutiny because of the risks taken by them and the greed of their executives. The Minister has a considerable say and, once again, the question arises as to whether regulations will be made and decisions taken on a rational basis or on a narrow political basis.
We will need to keep a beady eye on all developments. The DBSA has a huge challenge of managing both our country's development, financing as well as that of the region and the continent. It will, therefore, have to create good working relations with financial institutions promoting development from each of the Brazil, Russia, India, China and South Africa, Brics, countries in order to mobilise funds on a large scale.
This is why it is so important for the Minister to undertake that he will strengthen the DBSA institutionally. It must fulfil South Africa's obligations to all. Even as we support this Bill, we will continue to demand accountability, transparency and good governance. Thank you.