R/€ = 15.17Change: -0.16
R/$ = 14.34Change: -0.20
Au 1055.95 $/ozChange: -16.10
Pt 840.50 $/ozChange: -5.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Sep 18, 2013

DBSA makes loss as it disburses R9.2bn to infrastructure projects

DBSA CEO Patrick Dlamini
Photo: Duane Daws
DBSA CEO Patrick Dlamini
Africa|Environment|Housing|Projects|Renewable Energy|Renewable-Energy|Sanitation|Sustainable|Technology|The State-owned Development Bank Of Southern Africa|transport|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|Operations|R2|Southern Africa
Africa|Environment|Housing|Projects|Renewable Energy|Renewable-Energy|Sanitation|Sustainable|Technology|transport|Water|Africa|Angola|Zambia|Energy|Maintenance|Services||Infrastructure||Operations||
© Reuse this

The State-owned Development Bank of Southern Africa (DBSA), which is emerging from a far-reaching restructuring exercise, disbursed R9.2-billion in 2012/13 to support infrastructure projects in South Africa and the broader Southern African Development Community (SADC) – in 2011/12, the development finance institution disbursed R8-billion.

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)
Latest News
Updated 10 minutes ago AfriForum has taken its fight against fracking a step further. The group released a statement on Friday saying it had‚ together with the Treasure the Karoo Action Group (TKAG)‚ submitted documentation at the North Gauteng High Court “challenging the regulations with...
Updated 1 hour 14 minutes ago In its opinion outstanding e-toll bills are related to an unjust and irrational law which makes it unnecessary for businesses to be concerned about the amount they owe or to disclose it as a debt to shareholders, the Opposition to Urban Tolling Alliance (Outa) said...
South African Reserve Bank governor Lesetja Kganyago
Updated 2 hours 51 minutes ago South African Reserve Bank governor Lesetja Kganyago believes the reaction of the rand to a possible hike in interest rates by the US Federal Reserve (Fed) in mid-December could be “exaggerated”, but says the bank has no plans intervene in support of the currency....
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96