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DEVELOPMENT BANK OF SOUTHERN AFRICA

SUSTAINABLE COMMUNITIES PROGRAMME

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Programme Focus • Direct response to a challenge by the Governor to the DBSA to

create South African examples of Sustainable Communities• Advance National Policy – NSDP, Breaking new Ground, Advance National Policy – NSDP, Breaking new Ground,

ASASGISA, Draft “Framework for Sustainable Development in South Africa & 2014

• Social, Environment & Economic Sustainability• Meeting Fundamental Human Needs• People must be able to live, work and play in an environment

that builds human dignity and opportunity

Social and economic development that will build on renewable resources and will not further compromise the quality of life and availability of

resources to future generations.

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Sustainability Principles

1. Sense of justice:– meeting fundamental human needs (subsistence, protection,

affection, understanding, participation, idleness, creativity, identity and freedom) with appropriate satisfiers

– rights-based democratic governance and participation

2. Sense of limits:– transition to renewable energy alternatives and energy efficiency

– zero waste via re-use of waste outputs as productive inputs

– connectivity via sustainable transport, with a major focus on public transport

– home building, sustainable construction materials and building methods

– sustainable water use and re-use of treated sewerage

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Sustainability Principles3. Sense of place:

– health, well-being and soulfulness – safe places within integrated communities (with special reference to

children and women)4. Sense of history:

– valuing cultural diversity, sense of community, participatory culture, healing and memory

5. Sense of craft:– growing the local economy, greater equity and fair trade – local and sustainable food supplies, markets, & agricultural value

chains (especially organic food)– human skills, knowledge development and continuous learning

6. Sense of nature: – reverence for life, enhancing biodiversity and the preservation of

natural habitats– working with rather than against eco-systems

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Pilot SitesPilots were selected to reflect the range of challenges facing the South African Community

Phalaborwe: Ba-Phalaborwa

Lydenburg: Thaba Cheuw

City of Jhb Metro: Diepsloot

Ngangelizwe: King Sabata Dalindyebo

Motherwell: Nelson Mandela Grabouw: Theewaaterskloof

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Pilot Sites Status• 5 MOU’s signed/business plans finalised• Sustainable Development Plans being finalised• Grabouw

– Selected Service Providers for comprehensive Planning

– Secured Partnerships with Municipality, Province, Department of Public Works, Safcol MTO and CAPE

– Identified 4 PPP’s to improve town functionality • Phalaborwa

– Initial projects to be implemented January 2007 – Some DBSA funding committed– Negotiations with tribal authorities/Council re land for

development and services being finalised– Stakeholder engagement started

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Partnerships

• Finalising partnership agreements with some some private sector companies

• Create secure markets and opportunities with reduced risk

• Adhere to principles of sustainability• Risk sharing and co-funding• Community ownership and broad based

beneficiaries• Job creation, labour intensive projects• Initial projects-farming, distribution, property

development

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Unilever Partnership

• Partnership with Unilever’s “Reach the People” Programme

• Bringing 1st & 2nd economy together using Unilever brands

• Unilever contribution - funding, products & skills• Projects to be community owned & managed

– Warehousing & distribution– Packaging, Re-Packaging & recycling– Supply of ingredients (farming & processing)– Promotion, marketing & sales– Franchising & entrepreneurial ventures

Prov /Sect Dept’s

National Depts

Capex

Capex

Opex

Opex

Housing

MIG – Basic Infrastructure

Economic Infrastructure

Social Infrastructure

Other Grants (NPDG, Rest etc.)

Com

mu

nit

y

Need

s

Donor Funding

Other funding sources

r

Public Private Partnerships

Coordinating Vehicle

DBSADBSA

Segment 1

Council

Segment 3

Council

Segment 2 Council

District District

Unblock fundingCoordinated & Integr Approach

Knowledge BaseStrategic Partnerships

IDP and Fiscal AlignmentSubmission of business plans

Sustainable PrinciplesM & E

Capacity BuildingPowers and functions

Unfunded Mandate

CompetitiveAdvantageValue addValue add

Capacity Building

Grant Funding

Loan Funding

Stakeholder

Management

Compl i ance

Do R A

MFMA

Powers & Functions

Unfunded Mandates

Financial Model

Conditions

Grant

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455,417 14%

609,765 19%

249,301 8%912,527 29%

476,751 15%

458,970 15%Thaba Chweu

Grabouw

Ngangelizwe

Diepsloot

Ba -Phalaborwa

Motherwell

FIVE YEAR BUDGET REQUIREMENT (PER PILOT)

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Projected cost per Service

R63m (4%)

R60M (4%) R56m (3%)

R154m (9%)

R186m (12%)

R75m (4%)

R41m (2%)

R133m (8%)

R159m (9%)

R429m (26%)

R184m (11%)

R88m (5%)

R57m (3%)

Planning Support, Policies & LED StrategyCapacity Building

Social Infrastructure

Health

Education

Transport

Water

Sanitation

Roads & stormwater

Housing

Electricity

Saftey and Security

Solid Waste / Refuse