banks are a key tool used to boost the competitiveness of exports through provision of various forms of direct financing to foreign buyers when commercial loans are While South Africa has a number of DFIs (the largest are IDC unavailable, or by guaranteeing and therefore reducing and DBSA) these are small in size relative to comparator the cost of commercial loans. [...] Enforce strict local contents requirements on IDC developmental to meet the massive challenges facing the loans for the purchase of capital goods in order to South African economy, IDC and DBSA need to be scaled create domestic demand. [...] Amongst industrialised economies, the German KfW of DFI finance by itself will not be sufficient to solve all the is the largest development bank in the world, relative to problems facing these sectors. [...] Although the ANC Group Anticipated Potential sources Time frame of funding to for impact has agreed in principle that DFIs are an important tool of implement the industrial policy, and need public funding in order to be project effective, these measures have never been implemented Taxpayers In order to fund Funds allocated to On-going due to perceived fiscal constraints. [...] capitalisations/budget- IDC/DBSA through ary allocations to the an increase in the DFIs the government budget (rather would either have than a realloca- to borrow more in tion of existing 5.
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- South Africa
