SADC Resource Mobilisation Strategy The following Resource Mobilisation Strategy for SADC has been developed on the basis of the study and is built on the following four pillars: i. ii. iii. iv. Planning, monitoring and evaluation. Capacity for resource mobilisation. Broadening the resource channels. Framework of dialogue with International Cooperating Partners. 1.2 Introduction According to the RISDP, SADC’s financing requirements can be divided into financing for SADC’s coordination function and financing for development activities. SADC’s coordination function is financed mainly through membership contributions and is based on the proportional contribution of each Member State to the combined SADC Gross Domestic Product (GDP). Member States are also implementing projects at national level. International Cooperating Partners also contribute to the SADC Secretariat operational budget and to the bulk of the projects in the form of grants and financing agreements through different mechanisms and procedures which have to be progressively aligned to the SADC rules and procedures. The potential sources of finance and financing mechanisms as stipulated in the RISDP are as follows: o Financing for Development in the SADC region: • Public finance • Official development assistance (ODA) • Debt relief • Domestic savings • Foreign Direct Investment (FDI) and Portfolio Investment (FPI) • Development Finance and the Development Finance Institutions network. o • • • • Financing Mechanisms for Financing Development Public-Private Partnerships (PPPs) Domestic financial and capital markets Private equity and venture capital SADC Development Fund 7