The DBSA Invests EUR70 Million in Senegal's Digital Education Revolution

Johannesburg, 5 August 2024 - The Development Bank of Southern Africa (DBSA) alongside the Virtual University of Senegal (UVS) is leading and engaged in a remarkable initiative to expand the Senegal Virtual University expansion project, aiming to drive growth and prosperity throughout the African continent. This project seeks to ensure equitable access to higher education for young General Certificate of Education Advanced (GCE 'A') Level holders of all genders in Senegal and supports their professional integration.

ICT empowers decentralised work efforts, bridging the time and distance gaps between countries. Education, a key driver of change, equips people with the knowledge and skills needed to secure jobs, enabling emerging economies to thrive in global markets. However, many of these nations, especially in Africa, need more infrastructure to fully participate in global value chains.

According to a World Bank study, Africa will need EUR 100 billion to achieve universal broadband connectivity by 2030. This is where funding is critical in driving Africa towards achieving adequate capacity to deliver against its ICT infrastructure development goals. This includes all infrastructure required for digital transformation, which the African Union has recognised as an agent of innovative, inclusive, and sustainable growth in its Digital Transformative Strategy 2020 -2030. To ensure that this is possible, the DBSA continuously seeks investment opportunities from both private and public sectors as well as co-financiers where ICT projects can be developed for immediate or preparation funding.

The DBSA, through its Transacting division, has approved a EUR 70 million on-lending sovereign loan to the Government of Senegal for the construction of 45 open digital spaces, known as ENOs, as part of the Virtual University of Senegal (UVS) expansion project. This initiative aligns with Senegal's Emerging Senegal Plan (PSE), which aims to reform higher education to accommodate the rapid increase in student enrolment and address the infrastructure deficits in the sector.

"The Virtual University of Senegal Project is a testament to our commitment to supporting educational infrastructure development across the continent," stated Mpho Mokwele, Group Executive - Transacting. "By investing in digital learning spaces, we are enabling access to quality education for thousands of students, thereby contributing to the socio-economic development of Senegal."

The project involves a collaborative effort with the Ministry of Finance and Budget of Senegal, the Ministry of Higher Education, Research, and Innovation (MESRI), and a consortium of partners including Standard Chartered Bank (SCB) and Banque Nationale pour le Développement Économique (BNDE). The funding structure includes a EUR 167.7 million facility, with DBSA underwriting EUR 70 million of the Euro Tranche.

Key benefits of the project include:

• Increased access to education - the construction of 45 ENOs will facilitate the enrolment of up to 45,000 students annually, providing them with the necessary infrastructure for a blended learning approach.
• Job creation - the project is expected to create numerous job opportunities during the construction phase and beyond, contributing to local economic growth.
• Enhanced healthcare access - each ENO will include telemedicine rooms, improving access to healthcare services for communities in remote areas.
• Technological advancements - the project will bolster Senegal’s ICT infrastructure, fostering a more connected and technologically adept society.

The DBSA is dedicated to identifying and executing projects that yield high developmental impact. The expansion of the Virtual University of Senegal is just one of many initiatives aimed at enhancing infrastructure, promoting economic stability, and improving the quality of life across African nations.

"Building Africa's prosperity requires strategic investments in key sectors such as education, healthcare, and technology," added Seison Reddy, Head Transacting South Africa and International "The DBSA remains committed to working with our partners to drive sustainable development and create a brighter future for all Africans."

Public-Private Partnerships (PPPs) are an important mechanism for infrastructure development and service delivery in the region. The DBSA recognises the value of leveraging private sector expertise, efficiency, and capital to complement public sector efforts in addressing infrastructure deficits and improving service delivery.

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