The Development Bank of Southern Africa (DBSA) is one of several development finance institutions in South and Southern Africa. Its purpose is to accelerate sustainable socio-economic development by funding physical, social and economic infrastructure. DBSA’s goal is to improve the quality of life of the people of the region.
The Bank plays a multiple role of Financier, Advisor, Partner, Implementer and Integrator to mobilise finance and expertise for development projects.
The Development Bank’s strategy is under-pinned by two major themes:
a) Generating investment in assets, hard (physical) and soft (human & institutional), that serve the poor, directly and indirectly, and that support broad-based wealth creation (infrastructural and productive capital);
b) Mobilising, developing, applying and sharing knowledge in support of greater development effectiveness, innovation and an enabling developmental environment
DBSA Development Fund
Government, the private sector and civil society recognize that capacity constraints represent the biggest obstacle to service delivery by municipalities. The DBSA has responded to this challenge by establishing the Development Fund. It was incorporated in December 2001 to address sustainable capacity building at municipal level and to support municipalities in enhancing service delivery and local economic development. The Development Fund achieves its mission by delivering the following products and services:
- Funds: capacity building funding through grants
- Expertise: mobilization and deployment of technical and financial experts for infrastructure project implementation
- Development facilitation: technical support and sharing of knowledge
Products & Services
Fully aware that money alone will not ensure socio-economic development, the DBSA complements its financial support with a wide range of knowledge products. It successfully combines the high quality of its knowledge support with an approach that promotes the transfer of skills and buy-in as well as the support of key stakeholders.
Through its unique products and service offering, the Bank is able to address the needs of clients and potential clients in a comprehensive and sustainable manner.
Financier: Grants ; Lending ; Investing ; Underwriting Guarantees ; Arranging of Finance.Advisor: Training ; Development and Expertise ; Development Facilitation ; Agency Service.Partner: Development Information ; Research, Analysis and Advice ; Technical Assistance ;Research and Evaluation.Implementer: to originate and facilitate key initiatives for building capacity and providing development solutions.Integrator: to mobilise and link stakeholders, resources and initiatives for sustainable development outcomes.
Over the next three years, the Development Bank strategy envisages the investment of R8 billion in South Africa and the deployment of 150 experts to develop and implement infrastructure projects. The growth will be on the sectors and projects identified in the Accelerated and Shared Growth Initiative for South Africa, the SADC Regional Indicative Strategic Development Plan and the NEPAD Short Term Action Plan for infrastructure.
Over the ten-year period leading to 2014, the Bank plans to invest a total of R45 bilion, of which R30 billion will be in South Africa and R15 billion in the rest of Southern Africa. These are some of the initiatives undertaken by the Bank.
Sustainable Communities Programme
This provides a comprehensive, integrated package of support to poor municipalities in their efforts to develop social and economic infrastructure that promotes local economic development and sustainably improves the quality of life of residents. The physical implementation of projects commenced in five localities in the Eastern Cape, Gauteng, Limpopo, Mpumalanga and the Western Cape during 2006.
Local Investment Agency
The DBSA and Old Mutual have established a partnership to set up local investment agencies. A number of areas in South Africa remain economically depressed despite their strong potential for economic growth and job creation, and this potential can be unlocked by investing in sectors with location advantages. In such areas, a local investment agency can act as a catalyst for private and public sector investments. The DBSA uses its knowledge base, human resources and capital to reduce the risks associated with investment in these designated localities, and through this unique partnership mobilizes private sector resources for investment benefiting poor communities.
Women's Development Programme
The Bank’s gender equity programme focuses mainly on support to South African Women in Construction (SAWIC), which forges strategic partnerships to attend to the needs of women in construction and their enterprises. SAWIC members have been involved in various training programmes on running profitable enterprises, registering businesses and developing business plans.
Local Government Resource Centre
The Local Government Resource Centre (LGRC) was developed in partnership with local government stakeholders to assist municipalities meet the challenges they face and to fulfill their development responsibilities and duties. It is intended to be a one-stop support centre that is directly accessible to all municipalities and other local government stakeholders through a virtual private electronic network called the Local Government Network (LGNet). In LGNet, a local government e-community is established that pools resources, shares knowledge and cooperates, thus helping municipalities to function more efficiently.
There is a need for a Knowledge Management player on the African continent and the DBSA is creating a unique niche for itself in this regard, creating and co-sponsoring KM events and a platform that stimulates on-going experiential knowledge sharing in Africa through structures to be created by the participants themselves.
AsgiSA (Accelerated and Shared Growth Initiative for South Africa)
In pursuing a higher growth path for South Africa, the government has developed and adopted the Accelerated and Shared Growth Initiative for South Africa (AsgiSA). This initiative has prioritised increased public investment in infrastructure, starting with an investment of R372 billion over the next three years. The AsgiSA initiative is likely to give rise to a number of large infrastructure projects in South Africa, with municipalities directing more effort towards these areas.
The DBSA Vulindelela Academy has directed a large number of interventions towards regional development finance institutions, and is also involved in developing a project management programme to support the AsgiSA initiative. The Bank also expects to play a major role in funding certain infrastructure elements proposed under AsgiSA.
Where is Development Bank of Southern Africa (DBSA)