The New Development Bank (NDB) and the Development Bank of Southern Africa (DBSA) have announced the signing of a US$100mn loan agreement aimed at advancing sustainable infrastructure development in South Africa
This is a continuation of NDB's strategic cooperation with DBSA, a leading development finance institution operating across Sub Sahara Africa and headquarted in South Africa. This is the second NDB loan to DBSA, following a successful implementation of the first loan of US$300mn, which was earmarked for renewable energy.
Under the terms of the loan agreement, NDB will provide the US$100mn loan to DBSA for a range of sustainable infrastructure development projects in South Africa, aimed at improving the country's economic resilience, environmental sustainability and overall economic growth.
The loan will support socio-economic development in South Africa and may also contribute to climate change mitigation through increasing power generation capacity from renewable energy sources. Through investments in social infrastructure, the loan will contribute to improved quality of health services and affordable and safe accommodation. The loan will also lead to improved digital connectivity through extended broadband networks across the country.
In line with NDB's General Strategy for 2022–2026, NDB is facilitating the participation of the private sector in addressing infrastructure backlogs and scaling up investments in infrastructure whilst also broadening its development impact and covering new sectors of the South African economy, such as social and digital infrastructure.
"Signing of this loan agreement and recommitting to the DBSA is a testament of the strategic partnership between NDB and DBSA. Our collaboration highlights a shared vision of promoting sustainable infrastructure development initiatives and driving economic growth in South Africa, in line with its national development plans and priorities," remarked Vladimir Kazbekov, NDB vice-president and chief operating officer. "Multi-stakeholder cooperation is indispensable to close the immense infrastructure financing gap in BRICS and other EMDCs. Given this, NDB strengthens cooperation with peer multilateral development banks, national financial intermediaries, and development finance institutions, such as DBSA."
"As the DBSA, we are committed to working with local and international partners to help us realise our mission in continuously building Africa's prosperity. This partnership aligns with both institutions' commitment to the United Nations Sustainable Development Goals (SDGs) and represents a positive step toward achieving a more sustainable and prosperous future for South Africa and its people. It is through these multi stakeholder engagements such as BRICS, that we can accelerate economic growth across our respective countries," added Boitumelo Mosako, DBSA CEO.
