DEVELOPMENT FINANCE INSTITUTIONS BOOST ECONOMIC DEVELOPMENT, PUBLIC SECTOR MANAGER
Development Finance Institutions (DFIs) have over the past five years played a crucial role in helping government carry out its main mandate — to grow the economy and improve the lives of South Africans. Following a bruising global economic meltdown that saw some developed states bailing out several institutions in a bid to save jobs, the South African government took a countercyclical policy stance that meant that the state increased its spending to stimulate the economy while it was on a downturn. To alleviate poverty, reduce inequality and create jobs, several DFIs needed to review their operations or business models in order to realign themselves to government's priorities and spending needs across key priority programmes. After President Jacob Zuma declared 2011 as the “Year of the Job”, DFIs received a much needed shake up to contribute to economic development on a large scale — some of them funding government projects and sponsoring industrial projects across various sectors, while some catered for socio-economic needs, like housing finance.