Africa Investment Forum: DBSA on creating an enabling environment for project development

The Development Bank of South Africa (DBSA) is playing a crucial role in advancing project development in Africa through its involvement in the Africa Investment Forum. Zodwa Mbele, Group Executive: Transacting at DBSA, emphasized the importance of moving beyond mere pledges and commitments to ensuring that deals are not only made but also fully implemented. DBSA is one of the seven founders of the Africa Investment Forum, which is currently ongoing in Sandton. The objective of the partners is to ensure that transactions are facilitated effectively, bringing together lawmakers, policy makers, heads of states, ministers, project developers, sponsors, and capital providers in a bid to move projects from planning to execution. Mbele highlighted that the key focus at the forum is creating an enabling environment for projects across the continent to thrive. She pointed out that while funding is available, the main challenge lies in identifying bankable projects that can attract investments. DBSA is actively working towards bridging this gap by focusing on project preparation and the development of tangible projects that can contribute to addressing the infrastructure deficit in Africa. Mbele noted that DBSA's project pipeline includes initiatives such as supporting municipalities in areas like water reuse for sustainability. The bank is also leading efforts to address the student accommodation shortage in South Africa by preparing projects that align with the government's goals. To tackle the impact of climate change, DBSA has secured funding from sources like the GSAF to support renewable energy projects and climate-related initiatives. By leveraging facilities such as the CEFF and embedded generation facility, DBSA aims to provide longer tenures and absorb the first-loss risk, making it more attractive for commercial banks to participate in sustainable projects. The bank is also exploring blended finance options to enable the scaling up of innovative technologies that can contribute to mitigating climate change. Through these initiatives, DBSA is demonstrating its commitment to fostering sustainable development and addressing the infrastructure and environmental challenges facing the continent.