Cape Town, 27 February 2025 - The Development Bank of Southern Africa (DBSA) and the International Fund for Agricultural Development (IFAD) have signed a Memorandum of Understanding (MoU). The MoU creates a framework for both the DBSA and the IFAD to mutually benefit from each institution’s expertise, to invest in people centred projects that enhance wider rural economic development in Africa and the continents' member states.
The agreement was formalised during a signing ceremony held at the Finance in Common Summit (FiCS) 2025 in Cape Town yesterday. In Addition, the MoU provides a pathway for a co-financing partnership between the DBSA and the United Nations Agency and International Financial Institution (IFI), specialists in lifting rural populations out of poverty for almost 50 years to date.
“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. It is through collaboration that we harness our collective strength to build a more resilient and prosperous future for all,” said Boitumelo Mosako, CEO of DBSA.
“We are excited to be working with a leading Public Development Bank such as DBSA,” said IFAD President Alvaro Lario. “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.”
Under the agreement, DBSA and IFAD will actively support a co-financing pipeline where IFAD projects are further bolstered financially and technically, contributing to improved project design and implementation, ultimately ensuring enhanced development outcomes in rural communities.
DBSA and IFAD will cooperate on six areas; integrated sustainable development that enhances the well-being of targeted rural communities, environmental conservation and resilience through innovative practices and financing instruments, empowerment of rural communities with improved value chains and social infrastructure that contributes to dynamic economies, knowledge sharing and capacity building, regional collaboration and financing for transforming rural areas, and governance and policy support.
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About the Development Bank of Southern Africa
Established in 1983, the Development Bank of Southern Africa is a government-owned development financing agency with the mission to advance regional integration and economic growth for sustainable development projects and programmes in South Africa, SADC, and the greater Sub-Saharan Africa area. The Bank’s purpose is to ‘Build Africa’s Prosperity’ by driving inclusive growth and finding innovative solutions that spur socio-economic development across the African continent.
About International Fund for Agricultural Development Partner
IFAD is an international financial institution (IFI) and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than US$25 billion in grants and low-interest loans to fund projects in developing countries
A wide range of photographs and broadcast-quality video content of IFAD’s work in rural communities are available for download from our Image Bank.
For media contact:
Sheila Ramufhufhi | SRamufhufhi@webershandwick.com | +27 849549160
Caroline Chaumont | c.chaumont@ifad.org | +39 349 662 0155