In a significant move towards advancing South Africa’s sustainable infrastructure projects, the New Development Bank (NDB) and the Development Bank of Southern Africa (DBSA) have proudly announced the signing of a USD 100 million loan agreement.
This collaboration underscores their commitment to fostering economic resilience, environmental sustainability, and overall growth in the nation.The loan agreement builds upon NDB’s ongoing strategic partnership with DBSA, a prominent development finance institution that operates across Sub-Saharan Africa and is headquartered in South Africa. This marks the second time that NDB has extended financial support to DBSA, following the successful implementation of a USD 300 million loan, which was specifically earmarked for renewable energy initiatives.
Under the terms of the newly inked agreement, NDB will provide a substantial USD 100 million loan to DBSA to fund a diverse range of sustainable infrastructure development projects in South Africa. These projects are set to play a pivotal role in boosting the country’s economic strength, environmental sustainability, and overall prosperity.Key aspects of this loan agreement encompass funding for the following areas in South Africa:
- Clean and Renewable Energy: The loan aims to accelerate South Africa’s transition towards cleaner and renewable energy sources, contributing to environmental sustainability and energy security.
- Social Infrastructure: Funding will also be allocated to essential social infrastructure projects, including affordable housing, student accommodation, and private healthcare facilities. These endeavors will enhance the quality of life for South Africans by providing safe and affordable housing, improving access to healthcare services, and facilitating educational opportunities.
- Digital Infrastructure: The loan will support the expansion of digital connectivity in South Africa by extending broadband networks across the country, thereby fostering improved digital access for citizens.
Moreover, this financial support is expected to promote socio-economic development in South Africa while potentially aiding in climate change mitigation through the increased generation of power from renewable energy sources.
It aligns with NDB’s General Strategy for 2022-2026, which aims to foster private sector involvement in addressing infrastructure challenges, scaling up infrastructure investments, and diversifying development efforts into new sectors of South Africa’s economy, such as social and digital infrastructure. Mr. Vladimir Kazbekov, NDB’s Vice President and Chief Operating Officer, expressed the significance of this partnership, stating, “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.
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. Ms. Boitumelo Mosako, DBSA’s Chief Executive Officer, shared the sentiment, saying, “As the DBSA, we are committed to working with local and international partners to help us realize 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.
This groundbreaking collaboration between NDB and DBSA not only fosters sustainable infrastructure growth but also echoes a commitment to international sustainability goals, ultimately leading to a brighter and more prosperous future for South Africa and its people. Stay tuned for more updates on this transformative partnership.
Origional source: https://infrastructurenews.co.za/2023/11/07/new-development-bank-and-development-bank-of-southern-africa-secure-100-million-loan-for-south-africas-sustainable-infrastructure-growth/
