DBSA operations on an upward rebound
The Development Bank of Southern Africa is another financial institution which is seeing a post-pandemic rebound. Profitability for the past year is almost at 170 per cent and it says it's bank sheet is showing new resilience. Joining CNBC Africa to wrap up the year that was and look forward to performance in the year ahead is Boitumelo Mosako, CFO, Development Bank of Southern Africa.
Mon, 22 Aug 2022 16:02:24 GMT
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AI Generated Summary
- DBSA reports a record net profit of 3.8 billion rand, marking a nearly 170% increase post-pandemic.
- The bank has supported key infrastructure projects, including CAPEX projects for metros, state-owned entities, and projects beyond South Africa.
- DBSA plans to allocate 33.4 billion rand for infrastructure development in the upcoming year, focusing on supporting municipalities, state-owned entities, and clients across the continent.
The Development Bank of Southern Africa (DBSA) is reporting a remarkable rebound post-pandemic, with a record net profit of 3.8 billion rand, nearly a 170% increase. Boitumelo Mosako, the Chief Financial Officer at DBSA, attributes this success to the institution's strong financial standing and its commitment to funding infrastructure development. In a recent interview with CNBC Africa, Mosako highlighted some key projects and milestones achieved by DBSA over the past period. The bank has supported capital expenditure (CAPEX) projects for metros across the country, state-owned entities, and infrastructure projects outside of South Africa. Furthermore, DBSA has seen improvements in collections from its non-performing loan book, enhanced liability management, and maintained a cost optimization strategy to keep its cost-to-income ratio below 30%. With an allocation of 33.4 billion rand for infrastructure development and support, DBSA plans to continue its focus on funding and implementing infrastructure projects in the upcoming year. The bank aims to support municipalities, state-owned entities, and clients across the continent, anticipating increased activity in infrastructure implementation. DBSA's proactive approach includes capacity building for municipalities, revenue enhancement programs, asset care initiatives, and water loss reduction strategies to combat corruption and improve efficiency. As the energy sector takes center stage with the President's new energy plan, DBSA is poised to capitalize on opportunities in renewable energy. The bank has been actively supporting Independent Power Producers (IPPs) through various bid windows and is set to assist entities in the upcoming window. Additionally, DBSA has launched an embedded generation program as part of its climate facility, solidifying its position as a key player in the renewable energy space. Looking ahead, DBSA remains committed to surpassing its previous achievements and driving sustainable infrastructure development across Africa.
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