SHANGHAI, Oct. 13, 2023 /PRNewswire/ — The New Development Bank (NDB) and the Development Bank of Southern Africa (DBSA) are pleased to announce the signing of a USD 100 m 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 USD 300 m, which was earmarked for renewable energy.
Under the terms of the loan agreement, NDB will provide the USD 100 m 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 key features of the loan agreement include providing financing in South Africa towards:
Clean and renewable energy
Social infrastructure (including affordable housing, student accommodation and private health care)
Digital infrastructure
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,” says Mr. Vladimir Kazbekov, NDB VP & COO. “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,” adds Ms. Boitumelo Mosako, DBSA Chief Executive Officer.
Background Information
New Development Bank
NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries.
For more information on NDB, please visit www.ndb.int
Development Bank of Southern Africa
The DBSA is a leading Development Finance Institution (DFI), wholly owned by the government of South Africa. Established in 1983, the DBSA is mandated to promote economic growth and regional integration by mobilising financial and other resources from national and international private and public sectors for sustainable development projects and programmes in South Africa, SADC, and the wider African continent.
For more information on DBSA, please visit www.dbsa.org
SOURCE NDB