South Africa: Development Bank of Southern Africa to receive ZAR 2.2 billion Line of Credit for portfolio expansion
ABIDJAN, Ivory Coast, December 20, 2022/ — The Board of Directors of the African Development Bank Group (www.AfDB.org) has approved a ZAR 2.2 Billion line of credit facility to the Development Bank of Southern Africa to build out its portfolio with strategic projects in energy, infrastructure, and communications technology within the Southern Africa region and across the African continent.
The facility will provide long-term funding to DBSA, augmenting internally generated funds as well as loans from other Development Finance Institutions and commercial lenders. The regional DFI is seeking to raise $1 billion (ZAR 19 billion) in funds over the next 3 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 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 cooperation.
DBA 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 5 priorities: Industrialize 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.