The Development Bank of Southern Africa (DBSA) has taken a stride towards enhancing rural economic development in Africa by signing a Memorandum of Understanding (MoU) with the International Fund for Agricultural Development (IFAD).

The formalisation of this agreement took place on Wednesday during a ceremonial event at the Finance in Common Summit (FiCS) 2025 in Cape Town.

This strategic partnership aims to leverage the unique strengths of both institutions—DBSA as a leading public development bank, and IFAD, an international financial institution renowned for nearly five decades of expertise in agri-development and poverty alleviation.

Together, they will focus on innovative, people-centred projects that promise to improve the livelihoods of rural populations across the continent.

Boitumelo Mosako, the CEO of DBSA, expressed the agency's commitment to infrastructure development.

“Infrastructure is at the heart of what we do at DBSA, and our impact is strengthened through the power of partnerships. By working together with like-minded stakeholders, we unlock innovative solutions, drive sustainable development, and create lasting change in communities,” Mosako said.

“It is through collaboration that we harness our collective strength to build a more resilient and prosperous future for all.”

IFAD is an international financial institution (IFI) and a United Nations specialized agency.

Complementing Mosako’s remarks, IFAD President Alvaro Lario acknowledged the significance of this partnership.

“We are excited to be working with a leading Public Development Bank such as DBSA. The partnership offers an important opportunity to jointly leverage additional resources and expertise for our projects, enhancing their impact on rural development, poverty reduction, climate resilience and economic growth across Africa,” Lario affirmed.

The MoU lays out an actionable framework for a co-financing partnership, enhancing the funding and support available for IFAD’s rural development initiatives. This synergistic approach will strengthen the design and implementation of projects, ensuring improved developmental outcomes and empowering communities.

Both institutions have identified six key areas for collaboration under the agreement, including integrated sustainable development,environmental conservation,empowerment, knowledge sharing, regional collaboration, and governance and policy support.

The collaborative efforts between DBSA and IFAD represent a significant commitment to uplifting rural communities in Africa, creating pathways for sustainable economic development that could transform lives and strengthen local economies. As both institutions begin to operationalise this partnership, the world watches with keen interest to see the impactful changes that can arise from this collaboration.

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DBSA and IFAD forge partnership to boost rural economic development in Africa