Dubai, 2 December 2023 - In an important development for our continent, the Development Bank of Southern Africa stands as the only African Development Finance Institution (DFI) included in the D20 Long-Term Investors Club (D20-LTIC). Consisting of 20 major financial institutions and institutional investors globally, notably from G20 countries, this alliance aims to underscore a common identity as long-term investors. Its overarching goal is to encourage cooperation and create favourable conditions for long-term investments that propel sustainable economic growth.
The DBSA, in its exceptional position as the only African DFI in this influential club, drives its mandate of promoting economic development and regional integration. This is achieved through inclusive and sustainable infrastructure development and capacity building, not only in South Africa but also across Sub-Saharan Africa.
Being part of the D20-LTIC connects the Bank to a network of major financial institutions and institutional investors from G20 countries. This facilitates increased access to global financing, expertise, and best practices. This platform can be used to attract investments and form partnerships crucial for funding large-scale infrastructure projects and promoting economic development.
Going beyond the conventional role of infrastructure development, the Bank's mission within the D20-LTIC underscores a commitment to encourage development that benefits all segments of society, particularly marginalised communities, and vulnerable populations.
Financing infrastructure in Southern Africa is important for the region's economic development, social progress, and overall resilience. Infrastructure finance plays a crucial role in supporting different economic sectors and addressing challenges specific to Southern Africa.
At the heart of the Bank's role in this alliance is its custodianship of the Infrastructure Fund. The fund, in line with the National Development Plan, serves the dual purpose of contributing to fixed capital formation and creating a sustainable infrastructure development ecosystem. The objectives extend beyond mere financial contributions, encompassing critical developmental impacts, such as job creation, reduction of inequality and poverty, and enhanced participation in infrastructure investment by the private sector, institutional investors, and multilateral development banks.
The inclusion of the Bank as the sole African DFI in the D20-LTIC marks a crucial milestone. This alliance holds the potential to unlock significant avenues for financing infrastructure, driving economic development, and promoting sustainable growth not only in Southern Africa but across the entire African continent.
There is a pressing need to finance infrastructure, innovation, and environmental programmes to support global economic growth recovery. There is also a general need to enlarge the worldwide share of financing for long-term capital investment. This is in line with the Development Bank of Southern Africa’s mandate.
The DBSA's unique status an African DFI in the D20-LTIC positions Africa to actively engage in global discussions, access international resources, and highlight its commitment to sustainable development. This inclusion elevates the Bank as a key player in shaping the trajectory of long-term investments and economic growth for the African continent.
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The DBSA is a leading Development Finance Institution (DFI), wholly owned by the government of South Africa. Established in 1983, the DBSA is mandated to promote economic growth and regional integration by mobilising financial and other resources from national and international private and public sectors for sustainable development projects and programmes in South Africa, SADC, and the wider African continent.
For more information visit www.dbsa.org. Email: dbsa@dbsa.org