Remarks by HON. JOSEPH NJOBVUYALEMA Vice President of the SADC Parliamentary Forum Presented on the occasion of a Dinner Cocktail on THE ROLE OF PARLIAMENT IN DOMESTIC RESOURCE MOBILIZATION (DRM)

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11th May 2016, Johannesburg, South Africa, OR Thabo, Southern Sun Hotel.

1. Context of Domestic Resource Mobilization (DRM)

Director of Ceremonies, Ladies and Gentlemen, Allow me to acknowledge that a cocktail dinner is not a platform for speeches especially when we have three days dedicated to intensive deliberations on a variety of subjects. I will therefore not want to spoil your dinner but it is however important that we highlight the context of this working dinner cocktail.

The failure by the developed countries (the G8) to uphold the development aid pledges they made at the 31st G8 Summit held on the 6th to the 8th July 2015 at Gleneagles, Scotland in the United Kingdom and the resultant dwindling aid require that more focus be put on domestic resource mobilization (DRM) initiatives. Resource scarcity for developing countries have been exacerbated by the global recession which many economies are still to recover from and recently the migration crisis which now has preoccupied the donor countries.

icon Remarks by HON. JOSEPH NJOBVUYALEMA Vice President of the SADC Parliamentary Forum Presented


Africa and all of the developing countries should now explore alternative means of how we will finance our development needs. Such alternatives should primarily explore available sources of domestic resources, whatever they may be. By definition, 'Domestic Resource Mobilization (DRM) refers to the generation of savings from domestic resources (both public and private) and their allocation to economically and socially productive investments.'

Domestic Resource Mobilization (DRM) is important to African countries because it is potentially the:-

a. biggest source of long-term financing for sustainable development and an important source for government to provide for public goods and services;

b. most stable and predictable source of revenue which hold the potential to strengthen fiscal institutions and long-term fiscal planning,

c. avenue for exiting from long-term aid dependency and in turn increase local ownership of the development processes and outcomes.

Director of Ceremonies, Ladies and Gentlemen,

In contrast to mobilizing external resources (through Foreign Direct Investment, aid, trade, and debt relief), DRM offers greater domestic policy ownership and greater coherence with domestic needs. It does not suffer from the disadvantages associated with Foreign Direct Investment (FDI) and foreign aid, which are tied to the objectives of foreign investors and donors.

2. Enhancing the Role of Parliament in Domestic Resource Mobilization (DRM)

I wish to bring it to the attention of this august gathering to the fact that AWEPA and the SADC Parliamentary Forum onTuesday, 10th November 2015, here in Johannesburg, South Africa successfully held a Regional Parliamentary Seminar on SADC Domestic Resource Mobilization (DRM) through Taxation for Development. Allow me to acknowledge some of the important collaborative activities the SADC Parliamentary Forum has undertaken with AWEPA. These include:

i. A Parliamentary Program on Aid Effectiveness

ii. Mobilizing Parliaments for NEPAD

iii. A joint Session of SADC PF Committees held in May 2015, and many more.

Today's dinner cocktail is meant to continue parliamentary dialogue we had and it will serve to lay the foundations for the formulation of a Parliamentary Curriculum on Domestic Resource Mobilization for SADC Parliaments.

Without predicting the curriculum outline and presentation we will receive, I trust that the curriculum will sufficiently cover relevant issues such as:-

A. the important role of taxation in Domestic Resource Mobilization(DRM)

B. effective budgeting and budget oversight

C. the value of maximising income from the extractive industries (mining and our fishery resources);

D. legislative measures to ensure the realization of the objectives of DRM

3. Conclusion: Thank You

Director of Ceremonies, Ladies and Gentlemen,

I, on behalf of the SADC Parliamentary Forum and indeed on my own behalf, wish to profoundly thank AWEPA for this dinner cocktail and more importantly for the collaboration which is meant to develop a training manual for SADC Parliamentarians on the Role of Parliament in Domestic Resource Mobilization. The Resource person in our midst to enlighten us in detail on this important topic is highly appreciated. It is therefore my fervent hope that we, through the collaboration, will find resources to roll out the training manual which will be developed.

I Thank You

icon Remarks by HON. JOSEPH NJOBVUYALEMA Vice President of the SADC Parliamentary Forum Presented

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