Ten Step Guide to Domestic Resource Mobilization for

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ASSOCIATION OF EUROPEAN PARLAIMENTARIANS WITH AFRICA (AWEPA)
AND
SADC PARLIAMENTARY FORUM (SADC-PF)
4 December 2013
Seminar Theme:
“Enhancing SADC Parliamentary Participation
in Development Effectiveness”
ABG’S
Ten Step Guide to Domestic Resource Mobilization for
Inclusive Business Development
OUR FOCUS – WWW.ABGHQ.COM
ABG Background: Founded in 2005 and comprised of a multi-disciplined and multinational professional
consulting team, Africa Business Group (ABG) is a South Africa based, continentally active, economic
development and business development advisory services company
Overarching Focus: Private Sector Development in Africa
Geographic Focus: Africa – 5 AU Regions and Fostering Continental
Internal and Global Economic Linkages toward Growth and
Development
Sectoral Focus: Infrastructure – Energy – Renewables and Efficiency;
Agriculture – Value Chain Development – Finance; Tourism;
Manufacturing/ Value – Added Production
Continental Institutional Working Relationships: AUC (African Union Commission), NPCA (NEPAD Planning
and Coordination Agency) , RECS (Regional Economic Communities) – EAC (East African Community),
ECOWAS (Economic Community of West African States), SADC (Southern African Development Community),
COMESA (Common Market of East and Southern Africa), AfDB (African Development Bank), UNECA (UN
Economic Commission for Africa), AFUR (African Forum of Utility Regulators), UNDP (United Nations
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Development Program)
INCLUSIVE BUSINESS ADVOCACY
UNDP AFIM SUPPORT: Since 2011, Group CEO, Michael Sudarkasa has been a senior consultant supporting
the UNDP’s regional Africa private sector development programme – the Africa Facility for Inclusive Markets
(www.undp.org/Africa/privatesector)
Premise: Africa has had over a decade of jobless
growth, to achieve the MDGS and avoid – variations of the
“Arab Spring” - more inclusive economic growth
Three Levels of Activity:
• Macro Level Activity: Helping develop Inclusive
Growth Policies
• Meso Level Activity: Helping facilitate Inclusive
Market Development (sector value chain
development/ localisation programme development)
• Micro Level Activity: Helping support firm level
supplier development (supplier/ distributor
development)
Tools Used: 1) Good practice knowledge event design and facilitation; 2) Knowledge product creation –
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Inclusive Business Finance Field Guide; 3) Project and Investment Facilitation Platform facilitation
AU/ NEPAD CD SUPPORT
NEPAD SUPPORT: Since 2010, ABG has served as an private sector advisor – directly (funded by GIZ) and
indirectly (via work with the UNECA) – to NEPAD - with a particular focus on capacity development - for the
Regional Economic Communities, in support of public-private partnership development, and in support of
private sector policy development at the national government/ legislature level – www.africa-platform.org
KEY ACTIVITY
• 2010 - Regional Coordinating Mechanism –
NEPAD CD Framework Alignment
• 2010 – NEPAD SWOT Analysis
• 2010 – NEPAD Private Sector/ CSO Engagement Strategy
• 2011 – APDev launch and development
• 2011 – BUSAN Case Study on India-Brazil-SA (IBSA)/
private sector advisor with NEPAD to Korea
• 2011 – 17th Africa Partnership Forum – Private Sector
Roundtable coordination
• 2012 – APDev Business Plan development
• 2013 – RECs CD Community of Practice Support
• 2013 – NEPAD/ APDev Co-Facilitator – Global Partnership
for Effective Good Development Cooperation
e-Discussion on Development Finance: Domestic Resource Mobilization
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TEN STEPS TOWARD DRM FOR IBD
• DMR – Domestic Resource Mobilization
• IBD - Inclusive Business Development
Premise: Domestic Resource Mobilization gives a nation the freedom to invest and own its development
agenda and spend – to make potentially unpopular nationalistic decisions that address key economic
development challenges (e.g. subsidies for farmers, procurement/ licensing preferences for local businesses,
incentives that support local investors)
1. Improve Tax Administration Efficiency – (collection and management of tax
receipts) – Resource: African Tax Administration Forum http://www.ataftax.net/en/
2. Promote Development and Funding of Domestic NGOs versus “International”
NGOs – (build local philanthropic fund management capacity) – Resource: African
Grantmakers Network - http://www.africangrantmakersnetwork.org/AGN-Assembly
3. Support Development of Community Foundations – (community designs
programmes and administers funds – promotes community reinvestment) –
Resource: Global Fund for Community Foundations –
http://www.globalfundcommunityfoundations.org
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TEN STEPS TOWARD DRM FOR IBD (Cont.)
• DMR – Domestic Resource Mobilization
• IBD - Inclusive Business Development
4. Pension Fund Liberalization – (pass legislation to allow pension funds to allocate
investment in infrastructure and private equity/ venture capital funds) – Resource:
OECD Working Paper on Insurance and Private Pensions No. 30: Pensions in Africa
5. Support Diaspora Fund/ Bond Development Initiatives– (engage with Diaspora and
explore internal and external fund development/ support opportunities) –
Resource: Home Strings - http://www.homestrings.com
6. Seek to Leverage Remittance Fund Flows – (explore opportunities to enhance
financial architecture to enhance benefit of remittances ) –
Resource: African Institute for Remittances (AIR) –
http://sendmoneyafrica.worldbank.org/african-institute-remittances-air-project
7. Work to Halt Illicit Fund Flows – ($50 billion a year lost via transfer pricing,
corruption, money laundering, tax evasion) – Resource: High Level Panel on Illicit
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Financial Flows from Africa - http://www.uneca.org/review-mission-hlp-iff-africa-drc
TEN STEPS TOWARD DRM FOR IBD (Cont.)
• DMR – Domestic Resource Mobilization
• IBD - Inclusive Business Development
8. Promote Inclusive Market/ Business Programmes – (pass legislation to require
localization requirements and corporate reinvestment to support local private
sector growth) – Resource: African Development Bank http://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/
9. Support Development of National Sovereign Wealth Funds – (support the
development of a sovereign wealth fund ) – Resource: Sovereign Wealth Fund
Institute - http://www.swfinstitute.org/about/
10. Promote Diaspora FDI / Skills Transfer – ( develop and support legislation,
programmes and government department development to incentivize brain gain
from returning diasporans, and FDI from Diasporans) –
Resource: International Organization for Migration, Migration Policy Institute –
http://www.migrationpolicy.org/pubs/thediasporahandbook.pdf
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HOW CAN WE BE OF ASSISTANCE?
Thank You!
Mignonne Karugu
Africa Business Group
The Business Centre at The Design Quarter
Fourways, Johannesburg
Tel: 27 11 513 4117 or 27 72 786 5010
E-mail: [email protected]
URL: www.abghq.com
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