China Development Bank and DBSA seal R5bn loan agreement to bolster African infrastructure
FUNDING
The Overberg Wind Farm project, which successfully reached financial close in March, is one of the projects that the Development Bank of Southern Africa (DBSA) played a pivotal role in financing.
Image: Supplied
The China Development Bank (CDB) and the Development Bank of Southern Africa (DBSA) have signed a landmark loan facility agreement worth $293 million (around R5.2 billion).
CDB is the largest bank for infrastructure investment and financing in China, and a main bank supporting projects under China’s Belt and Road Initiative. It is committed to promoting investment and financing cooperation with developing countries around the world.
The agreement was reached during the annual meeting of the BRICS Interbank Cooperation Mechanism held in Brazil, signalling a new chapter in the collaboration between these two financial institutions.
The recently established facility is set to fund a diverse range of projects in infrastructure, energy, information and communications technology (ICT), water, health, and manufacturing sectors across Africa.
This multifaceted approach aims to address pressing development needs and catalyse sustainable economic growth in the region, as Africa’s infrastructure gap is estimated at over $100 billion a year, which is a major barrier to inclusive growth.
CDB President Tan Jiong expressed optimism about the future of cooperation between the two institutions, saying “This agreement marks a new stage in our cooperation.”
It underlines the commitment of both banks to collaborate on initiatives that bolster trade and economic integration within the BRICS framework, ultimately reinforcing the all-round strategic partnership between China and South Africa.
This collaboration is in line with the ‘Ten Major Partnership Actions’ unveiled by China during the Beijing Summit of the Forum on China-Africa Cooperation in 2024.
It is driven by a mutual vision to accelerate modernisation and establish an all-weather community with a shared future for both China and Africa.
DBSA CEO, Boitumelo Mosako, articulated the importance of the agreement, emphasising its role in shaping the future.
“We sign this line of credit with our partner CDB to advance our ambition,” Mosako said.
“An ambition that carries a profound weight of future responsibility, for we are enabling unwritten chapters of our future through the sustainable infrastructure that we build today.”
The DBSA is a leading development finance institution committed to promoting economic growth, regional integration, and infrastructure development in Africa.
The collaboration between the CDB and DBSA not only highlights the deepening ties between China and South Africa but also reflects a broader commitment to fostering sustainable development across the African continent.
BUSINESS REPORT