Markets & Investment News South Africa

Development Bank of Southern Africa to receive R2.2bn line of credit

The board of directors of the African Development Bank group has approved a R2.2bn line of credit facility to the Development Bank of Southern Africa (DBSA) to build out its portfolio with strategic projects in energy, infrastructure, and communications technology within the southern Africa region and across the African continent.
Source: Supplied.
Source: Supplied.

The facility will provide long-term funding to DBSA, augmenting internally generated funds as well as loans from other development finance institutions (DFI) and commercial lenders.

The regional DFI is seeking to raise $1bn (R19bn) in funds over the next three years.

As it seeks to expand its portfolio expansion, it will focus on clean and renewable energy, infrastructure, ICT, social as well as women-owned projects in the Southern African Development Community (SADC) region. The loan was approved on 15 December 2022.

The Southern Africa region has achieved relatively high levels of economic, financial and trade integration and co-operation.

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 high five priorities which are to Industrialise Africa, improve the lives of Africans, and light up Africa.

DBSA’s strategic priorities also align with those of the government of South Africa, 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.

Source: African Press Organisation

APO is the sole press release wire in Africa, and the global leader in media relations related to Africa. With headquarters in Dakar, Senegal, APO owns a media database of over 150,000 contacts and the main Africa-related news online community.

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