Institution (DFI) subcommittee.
Singili’s appointment is good news for country because his role plays a strategic intervention in country’s developmental space, especially in investing in long term projects.
As a Chairman SADC DFI, he is bestowed with a number of responsibilities, among others; include working with other DFIs in the network to promote effective mobilization of resources by financial institutions in the SADC region. Resources mobilized are to be directed to investments in key areas with potential to stimulate economic growth, create employment and alleviate poverty in line with the SADC Regional Indicative Strategic Development Plan (RISDP).
Speaking to the media recently, Singili said he will hold the position for period of two years effective December 2018 to 2020, where as a Chair of SADC DFI Subcommittee, he also becomes an ex officio member of the Board of Trustees of SADC Development Finance Resource Centre (DFRC).
According to Singili, his appointment brings to Tanzania vast funding opportunities, where, he plans to influence DFIs to take lead in financing bankable development projects.
“TIB Development Bank will encourage development finance institutions in Tanzania and in SADC member states to provide funding for regional development projects,” he said.
He added that TIB would cooperate with other DFIs in the network to facilitate preparations for bankable projects through SADC Fund.
“TIB would cooperate with the government and other institutions to build enabling environment for Tanzania to host SADC Development Fund as that would enable development projects in Tanzania to get financial resources.
“With government approval, TIB would help development projects in Tanzania with impact in the SADC region to get funds and guarantee from SADC finance institutions through syndication and club loans,” he said.
It is clear that the appointment Singili catalyzes development pace in the country especially during this period where as a country we are focusing on industrialization strategies as advocated by the Government through the Second National Five Year Development Plan (2016/17 – 2020/21) with the theme: “Nurturing Industrialization for Economic Transformation and Human Development”.
The Plan implements the National Development Vision 2025 that clearly poses the contribution of the DFIs to the Tanzanian Industrial Development.
This opportunity compliment, Vice President SamiaSuluhu Hassan’s edicts, while Officiating at the opening the Annual SADC DFIs CEOs Forum at Julius Nyerere International Convention Centre in Dar es Salaam on July 07, 2017; Vice PresidentSamia said that it has been over two decade now when the SADC Head of States resolved to transform the region’s agenda to an economic integration agenda to industrialization in order to transit from the commodity-dependent growth.
Thus, Singili coming to position catalyzes Vice President’s vision on DFIs’ role towards Industrialization as she narrated: “The central challenge facing Africa is how to transition from the commodity-dependent growth path in which African countries find themselves to value-adding, knowledge-intensive and industrialized economies.
The goal is to occupy a higher place in the global division of labour. Africa at present is predominantly viewed as a producer and exporter of primary commodities and an importer of value-added manufactured goods.”
During the event, VP added that the Industrialization Strategy was developed as an inclusive long-term modernization and economic transformation scheme that enables substantive and sustained raising of living standards, intensifying structural change and engendering a rapid catch up of the SADC countries with industrializing and developed countries.
It is anchored on three interdependent and mutually supportive strategic pillars – industrialization as champion of economic transformation; enhancing competitiveness; and deeper regional integration.
“Given the adoption, both at regional and national levels, of industrialization as an economic growth enabler, it is imperative that DFIs play their mandated role, specifically the mobilizing of financial resources, and targeting these at key growth sectors to ensure the achievement of national and regional development goals,” VP Samia appealed.
Adding that the investment opportunities that arise from the regional value chain work will need to be underpinned by a significantly ramped-up focus on industrial finance and incentives, particularly with the strengthening of the role of national and multilateral development finance institutions (DFIs) to leverage and secure investment in the productive sectors of national economies, and in catalytic projects that facilitate regional trade and industrial integration.
According to VP Samia, the Strategy sets out three potential growth paths – agro-processing; mineral beneficiation and downstream processing and industry-and service-driven value chains.
The paths are mutually supporting and inclusive, encompassing the combination of downstream value addition and backward integration of the upstream provision of inputs, intermediate items and capital goods, hence, appealing to DFIs to intensively support the strategy.
“The SADC DFIs is one such forum that was created to spear economic integration so as to realize the region’s broad goal of promoting sustainable economic development through efficient productive systems, deeper cooperation and integration as well as good governance and security among member countries.
“It is through the support of DFI’s that SADC region is expected to reach this goal which is focused on economic growth and entails among others, robust project financing; infrastructure development; and innovations,” she appealed.
From VP Samia’s chronicle, Singili’s roles pave the way to promote the effective mobilisation of resources by the financial sector, in particular the DFIs, for investment in key areas with the potential to stimulate growth, generate employment and alleviate poverty, in line with the objectives of SADC under the RISDP.
SADC DFI Network and DFRC were established by a decision of the SADC Council of Ministers in 2002 and have since been operating under the SADC Finance and Investment Protocol. Membership of the DFI Network is open to all DFIs operating in the SADC region.
TIB Development Bank is among the founding members of the SADC DFI Network which currently comprises 41 development finance institutions from 15 SADC countries.In Tanzania other members Tanzania Agricultural Development Bank (TADB) and National Development Corporation (NDC).
The TIB Development Bank Limited was established in November 1970 initially by the Parliamentary Act, the Tanzania Investment Bank Act of 1970 with the main purpose of financing development with emphasis on industrialization of the country.
TIB was able to fulfil its mandate with notable success in the setting up of textile, leather, paper and other processing industries until the macroeconomic instabilities of the 1980s when the country’s economy deteriorated.