ANNUAL REPORTS

LETTERS TO THE STAKEHOLDERS | GOVERNOR’S FOREWORD
Development impact overview
The section highlights key development impact initiatives
during the year under review, starting with an overview of the
macroeconomic impact of the Bank’s operations. This is followed
by a review of initiatives carried out by the Bank’s capacity
building arm, the Development Fund, which comprises three
divisions: Capacity Development and Deployment; Community
Development Facilitation; and Rural Development.
Macroeconomic impact
The DBSA uses a partial general macroeconomic equilibrium
model based on a social accounting matrix (SAM) to calculate
the socio-economic impact of its projects. The model
specifically incorporates the sectoral investment focus of the
Bank. The model, which has 2006 as a base year, has been
adjusted to 2010 prices, and the discussion below is in real
(inflation-adjusted) terms.
In 2010/11, the DBSA approved projects to the value of
R34,2 billion. The value of the Bank’s signed agreements
with clients was R13,9 billion and the disbursements were
R8,3 billion. The bulk of the disbursements (70%) in South Africa
went to energy (28,7%), transportation (19,3%), communication
(14,1%) and entrepreneurial and manufacturing (7,9%).
The SAM models were used to calculate the impacts of the
DBSA’s funding, and these were compared to the previous
year’s results. The findings are shown in the graphs below.
Note that the approved funding portfolio is generally only
disbursed in future years. This portfolio will therefore have only
a potential impact, which will come into effect once the funds
are actually disbursed. The same holds for signed agreements.
Hence, only the disbursed funding portfolio can be said to
have an actual development impact. The graphs below show
the impact of all three of the portfolios. These figures are
estimates of the average annual impact on the economy over
the medium term and not specifically for the year ahead.
It is estimated that the total funding approved by the Bank
has a potential impact of R28,3 billion on the GDP, of which
R20 billion will be in South Africa. This constitutes approximately
0,75% of South Africa’s GDP in 2010/11 (2009/10: 0,49%).
The actual impact of the Bank’s disbursements on the GDP
of the African region is estimated at R7,8 billion, of which
R4,5 billion is in South Africa.
The total funding approved by the DBSA in 2010/11 has
an estimated potential impact on employment creation of
over 147 100 employment opportunities in the African region. 1
Of these, 95 300 employment opportunities could be created
in South Africa. The Bank’s own disbursements will create
an estimated 42 600 employment opportunities, of which
22 200 (52%) will be in South Africa (down from the 2009/10
figure of 31 600).
To support the economic activity initiated by these
disbursements, a capital amount of R22,5 billion will be
employed, directly and indirectly, in the African region.
Over R14,7 billion of this will be in South Africa, made up of
R5,4 billion in DBSA disbursements and R9,3 billion in capital
invested by other industries to supply the additional materials
and goods required. This amounts to 2,8% of South Africa’s
total gross fixed capital formation in 2010/11.
Every investment results in additional income to households
through economic linkages. The total funding approved by the
DBSA has the potential to create additional household income
of R13,2 billion in South Africa. Of this amount, R2,2 billion will
be to the benefit of low-income households earning less than
R33 120 a year. The Bank’s disbursements will create additional
total household income of R3 billion in South Africa, of which
R0,5 billion will accrue to low-income households.
The investments also contribute to government revenue for
all three spheres of government (national, provincial and
local) through the taxes paid on additional economic activity.
This additional tax revenue as a result of the Bank’s
disbursements in South Africa is estimated at R1,4 billion.
Estimated impact on GDP in South Africa,
2009/10 and 2010/11
R billion
25
20
15
10
5
0
Estimated impact on employment in South Africa,
2009/10 and 2010/11
Thousand
100
80
60
40
20
0
Approvals: DBSA Signed agreements Disbursements
2009/10 2010/11
Approvals: DBSA Signed agreements Disbursements
2009/10 2010/11
1. Labour and capital impacts on countries outside South Africa were estimated through SAMs of the relevant countries, but based on South African direct labour and
capital multipliers.
26 DBSA DBSA | ANNUAL | ANNUAL REPORT REPORT 2010/11 2010/11