BANKING SUMMIT
Andre Smit, ASISA: ‘All stakeholders
involved in the NDP need to regulate
stability and promote healthy investing.’
ture linkages and connectedness, present new markets for the provision of trade financing, banking platforms and transaction services
for regional business subsidiaries and deal financing between South
African enterprises and their regional counterparts.
One cannot help but note that generally, the political tone has
been one of an aversion to financing with stringent conditions such
as those associated with the structural adjustment programmes of
the International Monetary Fund (IMF) and World Bank.
Many infrastructure projects have both a social and a commercial
component, and therefore require a hybrid financing approach.
Therefore, the optimal financing structure needs to be tailored on
a case by case basis to fit the specific nature of the infrastructure
project. The same applies to the repayment model.
Government should provide first-mover guarantees, or fund the
first stages of riskier projects so as to attract the banking sector into
subsequent phases of a project. The more government can address
private sector concerns, the more money will flow in. However,
government also needs to ensure that the private sector comes in
on a proper developmental basis. This means localising production
wherever possible.
Panel discussions held throughout the day explored the key areas
where the banking industry and government could plan and work
together towards a common goal to alleviate the three ills facing our
nation, which are unemployment, poverty and inequality.
‘It is now the appropriate time to form partnerships with clear
roles so we can use the National Development Plan to achieve
sustainable growth and development for our people,’ said Nxasana.
He described South Africa as a young and vibrant economy with
enormous opportunities and challenges that can only be addressed
through platforms like the Banking Summit.
The deputy minister said some of the projects are still in
the implementation stages while others such as housing, railways, new hospitals and universities are already underway.
‘In order for this plan to succeed, we need the corporation of all
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THE BANKER
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