Sep 18, 2013
DBSA makes loss as it disburses R9.2bn to infrastructure projectsBack
Africa|Environment|Housing|Projects|Renewable Energy|Renewable-Energy|Sustainable|The State-owned Development Bank Of Southern Africa|Water|Africa|Angola|Mozambique|South Africa|Zambia|Bank|Development Finance Institution|Energy|Energy Projects|Information Communication Technology Sectors|Maintenance|Renewable-energy Developments|Services|Transportation|Infrastructure|Patrick Dlamini|Water|Operations|R2|Southern Africa
© Reuse this
However, approvals were lower at R18.1-billion, having already fallen to R24.8-billion in 2011/12, from a peak of R34-billion in 2010/11.
The DBSA also reported a net loss of R826-million, which it attributed to impairment losses on development loans of R1.6-billion and revaluation losses on financial instruments of R403-million.
The impairments were attributed mainly to non-public sector investments, which the bank said were susceptible to changes in the economic conditions. In future, the DBSA would focus predominately on financing public infrastructure projects in the water, sanitation, energy, transportation and information communication technology sectors.
The bank, which is led by CEO Patrick Dlamini, reported that 81% of disbursements flowed towards projects in South Africa, with the balance being directed to the rest of SADC.
During the year, the bank disbursed R5.6-billion to energy projects, primarily renewable-energy developments being built in South Africa, and R1.4-billion for domestic water infrastructure projects. It also invested R248-million in affordable-housing schemes and R50.2-million in student-accommodation initiatives.
Approvals for the region rose to R5.6-billion from a level of R3.8-billion in 2011/12, of which R2.9-billion was approved for energy and transport initiatives in Angola, Mozambique and Zambia. Regional disbursements for the year were R1.6-billion.
In the municipal market, the DBSA increased disbursements by 36.5% to R1.2-billion and made approvals worth R2.3-billion in finance for the large metropolitan councils and a further R937-million for secondary and under-resourced municipalities.
It also provided non-financing services, supporting eight municipalities with turnaround strategies and facilitating the completion of 24 projects as part of the bank’s operations and maintenance programme.
Non-financing support was also extended to the Green Fund, the Vulindlela Academy and government’s Accelerated School Infrastructure Development Programme.
“Despite the current losses, the board and management recognises that there are enormous challenges and opportunities within the current infrastructure development environment and will continue to build the organisation to maximise its development impact on a sustainable basis through the long-term investment cycle,” Dlamini said in a statement.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Updated 14 minutes ago The bidding window for government’s Coal Baseload Independent Power Producers (IPP) Programme is likely to be pushed back beyond its initially indicated June 8 closing date as the Department of Energy (DoE) tackles the design of a complex programme framework and...
Updated 25 minutes ago Undersea fibre-optic cable network operator Seacom on Tuesday announced the completion of its global Internet protocol (IP) and multiprotocol label switching (MPLS) network upgrade. The enhanced 17 000 km undersea network, which spanned across several key countries...
Updated 44 minutes ago Zimbabwe plans to import 700 000 t of the staple maize grain to plug a deficit after bad weather affected the crop from the current farming season, State radio reported on Tuesday. It quoted Agriculture Minister Joseph Made as saying Zimbabwe had 150 000 t of maize...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Mercedes-Benz will launch ten plug-in hybrid models by 2017, says the German automaker’s parent company, Daimler. Following the launch of the S 500 plug-in hybrid, March saw the introduction of the C 350 e, the second model to feature the drive-train concept. Under...
Energy Minister Tina Joemat-Pettersson's recent unveiling of something of a road map for an upscaled and accelerated deployment of independent power producer (IPP) capacity has been widely welcomed. Besides plans to accelerate and expand the hitherto successful...
South African Airways (SAA) acting CEO Nico Bezuidenhout has firmly denied reports that a stake in the airline was going to be sold to Air China. “Categorically, SAA is not in any talks with any airline to sell itself at the moment,” he stated at a media briefing at...
Russian State-owned nuclear group Rosatom has confirmed that it is in talks with Nigeria about the construction of nuclear power plants (NPPs) in that country, but has denied that any agreement has been signed. This follows a recent report in the Nigerian media that...
Gas products and services company Afrox has launched a pilot programme to deliver its range of Handigas liquefied petroleum gas (LPG) to domestic consumers to fill a gap in the market, thereby expanding its direct contact with end-users.