The Development Bank of Southern Africa (DBSA) plans to invest R1.5 million, over five years, to provide infrastructure to empower local municipalities.
However, it is not yet clear how this plan will integrate the Information Society and Development Inter-Governmental Relations Forum, a Cabinet-approved plan to use ICT as a development enabler across all spheres of government.
Speaking at the launch of DBSA's 2006/7 annual report at Refilwe Township last week, finance minister Trevor Manuel said the investment aims to strengthen municipal employees' capacity. It will also strengthen organisational systems so they can deliver services more effectively to citizens, he explained.
SA has more than 280 municipalities, with many of them so poor their citizenry lacks basic services such as electricity, water and sewage systems, Manuel said. "We must ensure that more people benefit; if we don't do that, then democracy will be put under pressure."
Research by local ICT house ForgeAhead has also shown a strong need for streamlining municipalities' ICT infrastructures and further investment to enable e-government services and smooth operations.
Past investments
Acting CFO Leonie van Lylveld says the bank's approvals for infrastructure development projects rose 16%, from R8.1 billion to R8.3 billion, in the 2006/7 financial year. Communication and transport sectors collectively accounted for 5% of the disbursements.
DBSA previously reported it would provide R50 million to co-fund iBurst's infrastructure network expansion, and about $40 million for the East African Submarine Cable System project.
MD Paul Baloyi says the bank also provides municipalities with virtual links to the Local Government Resource Centre (LGnet). The LGnet serves as a one-stop support centre that provides municipalities with operations tools, information and resources, he notes.
The annual report shows 240 municipalities (85%) applied for access to the virtual network, with 72% connected by the end of 2006. Plans to strengthen municipalities through ICT will continue in the 2007/8 year, Baloyi says.
2010 involvement
The DBSA is also responsible for disbursing funds for infrastructure development for the 2010 World Cup.
To date, the bank has disbursed the planning and initial capital amounting to R180.6 million. This is 82% of the allocated amount.
The bank also developed monitoring and control systems for the construction phase of the nine stadiums, which provides real-time data on funding flows and physical progress.
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