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DBSA’s role in boosting infrastructure investment in Africa
The Development Bank of Southern Africa, a state-owned financial institution, is backing projects to better the country's infrastructure, one brick at a time.
Fri, 19 Oct 2018 15:27:37 GMT
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AI Generated Summary
- The partnership between DBSA and AfDB underscores a joint commitment to promoting investment opportunities in infrastructure across Africa, with a focus on diverse sectors beyond traditional bricks-and-mortar projects.
- DBSA's financing strategies prioritize collaboration with government entities, municipalities, and private sector stakeholders to drive impactful infrastructure projects, facilitate regulatory changes, and address critical gaps in infrastructure financing.
- DBSA's role extends beyond South Africa, encompassing international projects and partnerships to support sustainable infrastructure development, enhance regulatory frameworks, and foster economic growth across the continent.
The Development Bank of Southern Africa (DBSA) has emerged as a key player in driving infrastructure investment across the continent, as highlighted in an exclusive interview with Mohan Vivekanandan, the Group Executive of Client Coverage at DBSA. Vivekanandan shed light on the DBSA's pivotal role in partnering with the African Development Bank (AfDB) to champion investment opportunities in Africa, particularly in the realm of infrastructure. The upcoming forum in Johannesburg serves as a platform to showcase around 60 identified projects, many of which are spearheaded by DBSA. These projects encompass a spectrum of sectors beyond traditional infrastructure, including energy, transportation, ICT, water, and sanitation. Vivekanandan emphasized the need for collaboration between government entities, development financial institutions (DFIs), and private sector investors to bridge the substantial infrastructure deficit on the continent. He cited the success of public-private partnerships, such as the renewable energy program in South Africa, which drew 90% of its investment from the private sector.
DBSA's strategic financing approach focuses on supporting South Africa's infrastructure requirements while expanding its reach to international projects. The bank works closely with government entities, municipalities, and private sector players to fund projects, provide long-term debt, and facilitate regulatory changes. Vivekanandan emphasized the importance of tailored selection criteria to allocate funding effectively and ensure project viability. DBSA's collaboration with export credit agencies, commercial banks, and other DFIs fills critical gaps in infrastructure financing, enabling smoother project execution and sustainable development.
Looking ahead, DBSA remains committed to driving impactful infrastructure projects that spur economic growth and social progress across Africa. By leveraging its expertise, financial resources, and strategic partnerships, DBSA aims to unlock new investment opportunities, enhance regulatory frameworks, and support sustainable infrastructure development. Vivekanandan's insights underscore the vital role of DBSA in catalyzing infrastructure investment and reinforcing Africa's position as a key frontier for development finance and sustainable growth.