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Article 26A of the 2001 Agreement Amending the Treaty of the Southern African Development Community (SADC) provides for the establishment of a special fund of SADC to be known as the SADC Regional (infrastructure) Development Fund (RDF), which shall be the main instrument of SADC for the social and economic development and integration of the SADC region.
SADC envisaged that sectoral financing instruments will be set up to become special “financing windows” under the RDF. SADC Member States thus mandated the SADC Secretariat to establish the SADC Regional Fund for Water Infrastructure and Basic Sanitation (the SADC Water Fund), as the key financing facility for the development and integration of the water sector in the region. This Fund will become a special “water sector financing window” of the SADC RDF.
The Development Bank of Southern Africa (DBSA) has been appointed as the Project Executing Agency to implement the start-up phase of the Fund. For this phase, a financial contribution of 10 million EUR has been made available by the German Development Bank (Kreditanstalt für Wiederaufbau (KfW)).
Objectives of the fund
The objectives of the Fund are as follows:
a) To strength the coordinating function of SADC in Water Sector funding;
b) To create an instrument to channel International Cooperating Partners (IPCs) contributions to the SADC Water Sector; and
c) To improve the regional water infrastructure.
The above objectives shall contribute to the improvement of the social-economic livelihoods of the population living in the SADC region.
Management of the fund
The DBSA has established a Fund Management Unit to implement the Fund. A Project Management Board (PMB) provides strategic guidance and approves Operational Guidelines for the effective implementation and mobilisation of additional financial resources for the Fund.
The PMB comprises the following stakeholder representatives:
KfW and other participating ICPs
DBSA Implementation structure
The Figure above depicts the organizational set-up of the SADC Regional Fund for Water Infrastructure and Basic Sanitation.