The Development Bank of Southern Africa (DBSA) has been granted a R2.2 billion loan by the African Development Bank Group (AfDB) to build out its portfolio with strategic projects.
AfDB’s board of directors yesterday announced that it had approved the line of credit facility five days ago to the DBSA for energy, infrastructure, and communications technology projects within the Southern Africa region and across the African continent.
The facility will provide long-term funding to the DBSA, augmenting internally generated funds as well as loans from other development finance institutions (DFI) and commercial lenders.
The DBSA is seeking to raise $1bn (R17.3bn) in funds over the next three years.
As it seeks to up its portfolio expansion, it will focus on clean and renewable energy, infrastructure, ICT, social as well as women-owned projects in the SADC region.
“The Southern Africa region has achieved relatively high levels of economic, financial and trade integration and co-operation,” the AfDB said.
“The DBSA has systemic importance as a DFI that provides credit to various sectors in Sub-Saharan Africa. The loan also advances three of the bank’s five top priorities: to industrialise Africa, improve the lives of Africans and light up Africa.”
The DBSA, he said, had successfully delivered infrastructure to the total value of R33.4bn of which R15.1bn was infrastructure catalysed, in the financial year ended March 31, 2022.
According to the bank, 13 projects were successfully completed at the local government level, while infrastructure unlocked within under-resourced municipalities amounted to R2.1bn.
In its financial results in August, the bank said profitability increased by more than 168% from R1.4bn to R3.8bn in the previous financial year.
The DBSA’s strategic priorities also align with those of the South African government, including its National Development Plan and New Growth Path, in addition to the UN’s Sustainable Development Goals and Nationally Determined Contributions under the Paris Agreement.
Lastly, it aligns with the bank’s strategy to support the development of financial institutions to play a meaningful role in Africa’s development.
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