Guest Contributor | Feb 20, 2024 | 0
Regional development bank targets infrastructure, ICT, renewables and ESG
Abidjan — The Board of Directors of the African Development Bank Group has approved a R2.2 billion credit facility for the Development Bank of Southern Africa (DBSA) to grow its portfolio with strategic projects in energy, infrastructure, and communications in the Southern African region and across the continent.
The facility will provide long-term funding to DBSA, augmenting internally generated funds as well as loans from other development finance institutions (DFIs) and commercial lenders. The regional DFI is seeking to raise US$1 billion (R19 billion) in funds over the next 3 years. As it expands its portfolio, it will focus on clean and renewable energy, infrastructure, ICT, Social as well as women-owned projects in the SADC region. The loan was approved on 15 December 2022.
The Southern African region has achieved relatively high levels of economic, financial and trade integration and cooperation.
The development bank has systemic importance as a DFI that provides credit to various sectors in Sub-Sahara Africa. The loan also advances three of the bank’s High-5 priorities: Industrialize Africa, Improve the Lives of Africans and Light up Africa.
DBSA’s strategic priorities align with the bank’s strategy to support the development of financial institutions to play a meaningful role in Africa’s development.