Collaboration on climate finance and infrastructure development extended to 2030

A collaboration focusing on climate finance, infrastructure development and nature-positive investments will be extended through to 2030. 

This is as the Development Bank of Southern Africa (DBSA), the Agence française de développement (AFD) and PROPARCO have signed a Memorandum of Understanding (MoU) formalising their strategic partnership through December 2030.

This agreement builds on more than 25 years of collaboration and sets out an ambitious framework for joint action in support of sustainable development across the African continent.

Since 1994, the partnership has mobilised over EUR 526 million in financing, benefiting more than 3 million people through investments in basic infrastructure, renewable energy and climate resilience.

A notable milestone includes DBSA’s inaugural €200 million green bond in 2021, fully subscribed by AFD, which helped catalyse the development of South Africa’s green bond market.

This new MoU identifies five strategic priority areas: support to municipalities and provinces; financing for state-owned enterprises in critical sectors such as transport and energy; private sector development; the Just Transition Financing Mechanism; and nature-positive infrastructure investments that deliver measurable climate and biodiversity outcomes.

“This renewed partnership with the AFD Group marks an important milestone in our shared commitment to sustainable development across Africa, says Boitumelo Mosako, CEO at DBSA. 

“By aligning our resources around climate finance, infrastructure and nature-positive investment, we not only amplify our impact but also deepen our responsibility to the communities we serve.”

The AFD Group is proud to deepen its longstanding collaboration with DBSA, which has been in existence for over 25 years,  says Rémy Rioux, CEO of the AFD Group and Chairman of Finance in Common.

“Together, we are advancing innovative financing mechanisms and knowledge partnerships that address the challenge of financing sustainable development in an age when global issues imply country-led solutions.

"Willing to work as a seamless system is a mindset we share with DBSA and our peers from IDFC, within the framework of the Finance in Common System (FiCS).”

“As a subsidiary of the AFD Group dedicated to financing the private sector, Proparco is pleased to contribute to strengthening the partnership between the AFD Group and DBSA, a long-standing partner, says Françoise Lombard, CEO of Proparco. 

“Through this MoU, we are deepening our synergies in support of impact finance in South Africa and across the region, in order to seize new financing opportunities in sectors such as renewable energy, social housing, and infrastructure.”

Last year, the National Association of Social Housing Organisations (NASHO) said it was dedicated to promoting affordable and sustainable social housing in South Africa. 

The organisation, whose membership owns and/or manages approximately 17 461 units, providing subsidised rental accommodation for over 115 000 low-to middle-income families throughout the country, said the critical aspect of its advocacy work focuses on reducing the financial burden on social housing providers, enabling them to deliver more affordable rental options.

“Our efforts have focused on advocating for lower rates and taxes for Johannesburg, Tshwane, eThekwini, and Buffalo City Metropolitan Municipality (BCMM).”

Beyond traditional lending, the partnership is said to explore innovative financial instruments including credit guarantees, climate insurance products and outcome-based bonds.

Technical cooperation will focus on integrating climate and nature-related risks into investment decisions, while knowledge partnerships will advance research on biodiversity finance, macroeconomic modelling and regulatory frameworks for public development banks.

The Parties will also collaborate within the International Development Finance Club (IDFC), contributing to global initiatives such as the Global Guarantee Platform aimed at mobilising private capital for climate-aligned development.

The implementation of the MoU will be coordinated through biannual project-team meetings and annual strategic dialogues between senior leadership to identify new opportunities and strengthen policy engagement.

Meanwhile, the University of Johannesburg (UJ) has launched Africa’s first advanced Rescue Simulation Centre, a state-of-the-art facility designed to transform emergency and disaster response training across the continent at its Doornfontein Campus on Friday. 

The four-storey, 3,000m² facility, designed and commissioned by the Department of Emergency Medical Care (EMC) in UJ’s Faculty of Health Sciences, is said to represent an innovative trajectory in emergency response education and research, firmly positioning the University at the forefront of rescue training, simulation, and innovation.

Speaking ahead of the launch, UJ’s Vice-Chancellor and Principal, Professor Letlhokwa Mpedi, says the Centre has a strategic role in enhancing national preparedness and advancing professional rescue capabilities. 

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