REGIONAL INDIC ATIVE STRATEGIC DEVELOPMENT PL AN 7 5 CHAPTER 5 Sustainable Financing of the RISDP Sustainable Financing of the RISDP 5.1 Financing for Development in SADC: INTRODUCTION • Public finance The RISDP is a long-term development strategy for • Official development assistance (ODA) economic growth and development and requires major • Debt relief commitment of sustainable financial and human • Domestic savings resources. This chapter addresses the financing • Foreign direct investment (FDI) and portfolio invest- mechanisms available to SADC as well as the policy framework necessary to mobilise funding for the RISDP. ment (FPI) • Development Finance and the DFI network SADC's financing requirements can be divided into financing for SADC's coordination function and financing Financing Mechanisms for Financing Development for development activities. • Public-private partnerships (PPPs) • Domestic financial and capital markets from • Private equity and venture capital 2003/2004 financial year will be based on the • A SADC Development Fund SADC's coordination function is financed mainly through membership contributions, which proportional contribution of each Member State to the combined SADC Gross Domestic Product (GDP). 5.2 International Cooperating Partners also contribute to the FINANCING FOR DEVELOPMENT IN SADC SADC operational budget. SADC is also exploring the feasibility of other self-financing mechanisms for its 5.2.1 operational budget. Public Finance The financing of SADC development activities is In order to implement RISDP at a national level it will be relevant to explore for the purpose of financing the imperative for Member States to improve on their public implementation of the RISDP. The analysis will focus finance mobilisation, expenditure and management mainly on the following potential sources of finance and systems. While the mobilisation and utilisation of public financing mechanisms for development activities: funds for development occurs at the national level, the