Development Bank of

Southern Africa

Overview

Agenda

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OUR VISION: A prosperous and integrated region, progressively free

of poverty and dependency.

• Welcome • Overview of the DBSA • Priority Markets and Activities • Opportunities for collaboration

…

The Development Bank of Southern Africa (DBSA) has been in operation since

1983; and through its multiple roles has been key to infrastructure development

both in South Africa and the greater SADC region

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Vision

Mission

Mandate

A prosperous and integrated region progressively free of poverty and dependency

“The DBSA shall advance development impact in the region through expanding access to development finance and effectively integrating and implementing sustainable development solutions”

•To promote economic development and growth, human resources development, and institutional capacity building in the region.

•To support sustainable development projects and programmes in the region •To focus on infrastructure •To leverage the private sector

DBSA’s Vision, Mission and Mandate

DBSA’s Multiple Roles

Financier Contribute to the delivery of basic services and promote economic growth through infrastructure

development

Advisor Build institutional, financial and knowledge capacity for development

Partner Leverage private, public and community stakeholders in the development process

Implementer Originate and facilitate key interventions for building capacity and providing development solutions

Integrator Mobilize and link stakeholders, resources and initiatives for sustainable development outcomes

DBSA’s multiple roles as a Development Financing Institution (DFI)

Strategic Overview DBSA strategy is driven by national imperatives and aims to achieve two

over-arching objectives

Deliver infrastructure

Achieve financial sustainability as foundation

for future growth

Infrastructure funding Infrastructure delivery support and

programme implementation

Provision of development finance and delivery capacity

to deliver infrastructure

Drive investments focusing on: • Core sectors: energy, transport, water, ICT • South Africa (municipalities, state-owned

enterprises, other public entities, public-private partnerships, private sector intermediaries)

• SADC

Support key government priorities: local government, health, education and regional integration in terms of SADC priorities.

• Grow development assets • Leverage third-party funds • Diversify product offering in support of

infrastructure development

DBSA to achieve financial sustainability over the medium term (grow equity greater than inflation) within acceptable risk framework: • Revenue maximisation • Non-interest income growth,

operational cost and impairments management

• Direct delivery: activities agreed with the shareholder and only undertaken on a full cost recovery basis

National imperatives National Development Plan

Presidential Infrastructure Co-ordinating Commission

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Strategic Overview Priority Markets and Activities

Services Project development advisory

services

Project finance Accelerating infrastructure

delivery

Programme

implementation

Project identification Feasibility assessments Technical assistance Financial structuring Project preparation funds

Debt Mezzanine finance Limited and non-recourse lending Guarantees

Managing the design and

construction of key

projects in the education,

health and housing sectors

Project management

support, including to the

Jobs and Green Funds

Municipalities Public-private partnerships Public-public partnerships Regional integration

South Africa

Municipalities State-owned enterprises Public-private partnerships Public-public partnerships Private sector intermediaries

Outside South Africa

As for SA except Municipalities and Sovereign

National and provincial

government departments

National government

departments

Target markets

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The International Division engages with various intermediaries,

and pursues mutually beneficial relationships…

Nature of engagement Partnerships / Intermediaries

Strategic SADC

COMESA

AfDB

AFD

KfW

Up-stream support

(project preparation)

AfDB

AFD

KfW

JICA

DFID

EIB

Advisory support DFI’s:

•Fonds de Promotion et de l’exportation – FPI (DRC),

•Lesotho National Development Cooperation

•ITT Power Station

Advisors: legal and financial advisors

Down-stream support

(co-financing)

Tanzania Investment Bank

Afrexim Bank

Shelter Afrique

Zambian Development Bank

African Financing Partnership

DBSA’s intermediaries and partners

….

Improved co-funding

opportunities and

access to regional

pipeline

Benefits accrued to investors and clients through collaboration with the DBSA

Credibility of operating via multi-lateral regional

implementation vehicle. Reduced risk

Access to existing operations and

networks

Coordinated approach and access to pooled

funding

Need for capacity building, advice and project preparation

support

Affordable mix of finance and grant funding

Investor Perspective:

gaining credibility for development interventions on the African continent

Client Perspective: benefiting from a coordinated development engagement

Examples of benefits

… in order to facilitate accelerated development in the Region and

accrue significant advantages / benefits for our partners and

clients

Thank you

Alwyn Coetzee Projects Preparation Unit

alwync@dbsa.org

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