Development Bank of Southern Africa (DBSA) to Fund SADC

The Development Bank of Southern Africa (DBSA) has pledged to invest at least two percent a year out of the 100 billion rand it has earmarked for the 2019 to 2020 period for SADC infrastructural development, a top official has said.

Mr Mohan Vivekanandan, a DBSA group strategy executive, indicated his company’s willingness to support the 15-member economic bloc at a week-long second SADC Industrialisation Week (2017), which was hosted by South Africa under the theme: “Partnering with the Private Sector in Developing Industry and Regional Value Chains.”

“It is crucial to come together and discuss what is happening around SADC projects and financing arrangements,” he said. “DBSA aims to deliver R100 billion for infrastructure development by the 2019 to 2020 period. We are targeting to invest at least two percent out of this amount into SADC infrastructure every year in the medium to long term.”

The event is an annual regional public-private engagement forum aimed at fostering new opportunities for intra-regional trade and investment.

The forum was taking place two weeks ahead of the SADC Heads of State and Government Summit, which is expected to receive recommendations from actors who discussed various issues aimed at fostering industrialisation and region economic growth.

Potential investors at the forum disclosed their strong interest in financing SADC projects on energy, roads and other infrastructure, as regional leaders strive to strengthen regional cooperation and integration.

Energy projects in SADC such as the Batoka Gorge Hydro Power Station planned on the Zambezi River between the borders of Zambia and Zimbabwe, the ZTK Power Transmission corridor connecting the power networks of Zambia, Tanzania and Kenya, as well as the Mpanda Nkuwa Hydropower plant situated in Mozambique on the Zambezi River basin to supply electricity to South Africa, were some of the investment projects discussed.

Other presentations at the event focused on concrete trans-boundary infrastructure projects for financing and capacity building support. Mr Vivekanandan said DBSA’s core areas of interest included energy, transport, ICT and water.

Energy accounts for about 65 percent of all SADC projects investment, with latest figures from DBSA indicating that up to $420 billion has been channelled towards the sector.

Source: allAfrica