Understanding DBSA's role in financing development projects in Africa

The Development Bank of Southern Africa (DBSA) plays a vital role in financing development projects across the African continent. In a recent interview with CNBC Africa, Mohan Vivekanandan, the Group Executive for Origination and Client Coverage at DBSA, discussed the bank's mandate, initiatives, and projects. DBSA, a South African National Development Bank, operates continent-wide with a focus on sustainable infrastructure development to drive economic growth, enhance quality of life, and promote regional integration. The bank supports initiatives such as the African Continental Free Trade Agreement by providing essential infrastructure for trade in goods and people. Vivekanandan highlighted the importance of long-term financing and pre-financing in infrastructure projects, as commercial banks typically offer shorter tenures and institutional investors prefer projects post-completion. DBSA steps in early in the planning stages to provide 15 to 17-year long tenure debt in multiple currencies. The bank also assists countries and ministries in long-term infrastructure planning, including social and economic projects like energy, transport, water, and sanitation. Notable projects include funding for hospitals, schools, and student housing. Over the years, DBSA's focus has expanded beyond the SADC region to include booming markets in West and East Africa. Partnering with other development finance institutions and organizations like the African Development Bank, DBSA is actively involved in projects in Ghana, Nigeria, Cote d'Ivoire, and beyond. In Nigeria, DBSA is evaluating involvement in the Dangote Refinery Project, a critical initiative to enhance the country's value addition in the oil sector. The bank also considers supporting a healthcare project in Abuja to address local healthcare needs and reduce reliance on foreign medical services. In Ghana, DBSA has invested significantly in the power sector, supporting projects like Seng Power and Car Power Ship, alongside airport terminal expansions. The bank's commitment to sustainable development is evident in its efforts to bridge the gap in infrastructure investment through initiatives like the Sustainable Development Investment Partnership (SDIP). This collaboration of public and private sector entities aims to create a bankable pipeline of priority projects and provide early-stage capital for project development. At the World Economic Forum, DBSA showcased projects in power, water, and roads across Africa to drive momentum and foster investment in critical infrastructure. With a strategic focus on sustainable development and regional integration, DBSA continues to play a pivotal role in financing projects that drive economic growth and social advancement across the African continent.