Development finance institution (DFI) the African Development Bank (AfDB) group has approved a R2.2-billion line of credit to the Development Bank of Southern Africa (DBSA) to expand its portfolio with strategic projects in energy, infrastructure and communications technology in the Southern Africa region and elsewhere in Africa.
The DBSA is seeking to raise $1-billion (R19-billion) in funds over the next three years, to expand its portfolio and focus on clean and renewable energy, infrastructure, information and communications technology and social as well as women-owned projects in the Southern Africa Development Community region.
The facility will provide long-term funding to the DBSA, augmenting internally generated funds, as well as loans from other DFIs and commercial lenders.
The loan also advances three of the DBSA’s High Five priorities, namely to industrialise Africa, improve the lives of Africans and light up Africa.
The Southern Africa region has achieved relatively high levels of economic, financial and trade integration and cooperation.
The 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 United Nation’s Sustainable Development Goals and Nationally Determined Contributions under the Paris Agreement.