SAARC Development Fund (SDF) celebrated its first ten years of funding projects aimed to facilitate regional integration and economic cooperation, on April 28.
The heads of government of eight SAARC member states - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka created the SDF Secretariat during the sixteenth SAARC Summit held in Thimphu, Bhutan during April 2010.
SDF’s investment efforts as the umbrella financial institution for all SAARC projects and programmes are displayed by 90 projects across 13 thematic areas, currently being implemented in the eight SAARC member states. These projects were financed under either of SDF's three funding windows.
Regional projects, currently ongoing or completed, under SDF’s Social Window include those aimed to strengthen the livelihood of home-based workers, address the needs of farmers, reduce maternal and infant mortality, deliver connectivity and content of e-governance to rural communities, prevent violence against children and women, as well as improve access to water, sanitation and hygiene in the SAARC region.
Following the recent establishment of SDF’s Economic and Infrastructure Windows, 48 projects across seven thematic areas were successfully completed in the eight SAARC countries. The projects were intended to cultivate synergies across the region through the financing of projects related to energy, power, transportation, tourism and other relevant fields.
Overall, SDF has an authorized capital of USD 1.5 billion and a total capital base of USD 529.37 million. The cumulative fund commitment under the three funding windows, including MSME Program allocation, stands at USD 198.23 million, out of which SDF has disbursed approximately USD 62 million.
"SAARC Development Fund’s mission was clear from the beginning; to promote regional integration and economic cooperation among the SAARC member states through project funding and collaboration", stated SDF's CEO Dr Sunil Motiwal.
"To realize this mission, we at SDF continue to undertake a number of initiatives for the strategic growth of the region. The last 10 successful years have offered us new projects, partners for co-funding and many new interventions to enable SDF to become a strong regional financial institution."
The CEO stressed the importance of regional projects, particularly highlighting SDF’s maternal and child health care flagship project which is being carried out in all SAARC countries with a budget of USD 15 million. The project aims to ensure that every infant and woman of childbearing age in the SAARC region is immunized and reduce mortality rates within this demographic.
The SAARC region's population records high annual birthrates an almost 50 percent of the population is in the reproductive group. Reports state that around 1 million or 39 percent of the world’s newborn deaths occur annually in the eight South Asian countries.
CEO Motiwal also noted 'Strengthening the livelihood initiative for home-based workers in the SAARC Region', which was implemented under SDF’s Social Window with a budget of USD 21.07 million.
The initiative resulted in the creation of the SAARC Business Association of Home-Based Workers (SABAH), a social business organization. It has increased the income and employability of home-based workers as per SDF’s goal of improving the quality of life, alleviating poverty and promoting economic growth and social progress in the SAARC region.
"Along with the projects, SDF considers the partnership with the Royal Government of Bhutan and the support of all the eight SAARC Member States, an immense privilege in traversing this journey of promoting the welfare of the people of SAARC region", said CEO Motiwal.
"As we move forward, we also have an ambitious plan ahead of us to make SDF a robust regional financial institution for the strategic growth of this region".
Currently, SDF is collaborating with partners to fund projects to mitigate the financial losses and the socio-economic impact of the ongoing COVID-19 pandemic.
"Several COVID-19 proposals from member states are currently under our active consideration and would be approved by the SDF Board as per the existing SDF policies", said the CEO.
Over the last ten years, SDF has strengthened relationship with various partners to co-finance cross-border regional projects and established ties with various Multinational Development Banks, International Financial Institutions, Regional banks, MSME Banks, SME Banks, Chamber of Commerce and Industries as well as Trade and Investment Promotion Agencies.
SDF's CEO emphasized that partnership would be crucial to fulfill the economic potential of the South Asian region.
"The increase in our engagements in South Asia reflects our strong commitment to improving the lives of the region’s people. But there are challenges too. Development changes in the region, trade barriers, income inequalities and environmental issues come in the way of SDF in accelerating economic growth, social progress and poverty alleviation".
However, SDF has noted the considerable potential for synergy across member countries considering South Asia's status as one of the world's fastest growing regions and the largest population of young people.
Asserting the Fund's commitment to working closely with the people and governments of SAARC members, Dr Motiwal extended felicitations on the occasion of the tenth anniversary of SDF.
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