The New Development Bank (NDB) and the Development Bank of Southern Africa (DBSA) announced the signing of a $100 million loan agreement aimed at boosting sustainable infrastructure development in South Africa.
This agreement consolidates the strategic cooperation between the NDB and the DBSA, a leading development financial institution operating in the sub-Saharan region and based in South Africa. It should be noted that this is the second loan granted by the NDB to the DBSA, after the successful disbursement of the first loan of 300 million dollars, aimed at renewable energy projects.
The loan agreement provides that the NDB will provide $100 million to the DBSA to finance a series of sustainable infrastructure projects in South Africa. These projects aim to improve the country’s economic resilience, boost environmental sustainability and foster overall economic growth.
Key features of the loan agreement include financing projects in South Africa related to:
- Clean and renewable energy.
- Social infrastructure, encompassing affordable housing, student accommodation and private healthcare.
- Digital infrastructure.
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This loan will not only support South Africa’s socio-economic development, but can also contribute to climate change mitigation by increasing electricity generation capacity from renewable energy sources.
Additionally, through investments in social infrastructure, it is hoped to improve the quality of healthcare services and the availability of safe and affordable housing. The loan will also promote digital connectivity by expanding broadband networks across the country.
In line with the NDB’s General Strategy for 2022-2026, this initiative seeks to facilitate private sector participation to address infrastructure challenges and increase investments in this sector. In addition, it seeks to expand its development impact and include new sectors of the South African economy, such as social and digital infrastructure.
Vladimir Kazbekov, VP and COO of the NDB, emphasized that this signing and the renewal of commitment to the DBSA reflect the strategic partnership between both institutions, highlighting their shared vision of driving sustainable infrastructure development and economic growth in South Africa, in line with national development plans and priorities.
Boitumelo Mosako, Executive Director of DBSA, noted that this alliance aligns with the commitment of both institutions in relation to the United Nations Sustainable Development Goals and represents a positive step towards a more sustainable and prosperous future for South Africa and its people. Through these collaborations with multiple stakeholders, such as the BRICS, the aim is to accelerate economic growth in the respective countries.