DBSA hosts inward buying mission & investment mission

The Development Bank of Southern Africa (DBSA) is actively participating in the Africa Energy Sector Inward Buying and Investment Mission in collaboration with the Department of Trade, Industry and Competition. Mpho Kubelo, the Chief Risk Officer and Acting CEO at the DBSA, sheds light on the mission and what stakeholders can anticipate from this initiative. Kubelo emphasizes the continuity of policy in South Africa's engagement with the rest of the continent, particularly in the energy sector. With the reappointment of the Minister of Electricity and expanded responsibilities in the energy domain, there is a strategic focus on addressing the pressing issue of power access for more than half of Africans. The aim of the mission is to forge partnerships with key players in the power industry across the continent, leveraging DBSA's extensive funding footprint in Sub-Saharan Africa. The DBSA's current and prospective project pipeline is robust, with a particular emphasis on energy projects in South Africa and the broader continent. Kubelo highlights the challenges related to transmission in South Africa and the organization's collaborative efforts with various stakeholders to address these issues. Moreover, as the global push towards renewable energy intensifies, the DBSA remains committed to supporting projects that facilitate the transition to net zero emissions, with a clear emphasis on renewable energy initiatives. In terms of financing, the DBSA is exploring diverse funding sources to meet the substantial energy infrastructure requirements aligned with the National Development Plan of 2030. By collaborating with African and international partners, the DBSA aims to attract additional investors interested in supporting projects on the continent. The organization's project preparation facility plays a vital role in assisting project sponsors in enhancing the bankability of their projects, addressing a key challenge in the industry. As Kubelo points out, the issue in the energy sector is not the availability of funding but rather the scarcity of bankable projects. Collaborative efforts among stakeholders, including the DBSA, the African Development Bank, and other key players, are crucial to bringing projects to a bankable status, facilitating easier access to debt, equity, and other financial structures. With over 1,200 projects valued at approximately $249 billion in its database, the DBSA is poised to make significant contributions to the energy sector in Africa. The success of the mission will be measured not only by the identification of potential projects but by tangible progress in advancing these initiatives. As stakeholders convene for a week of discussions and deal-making, the DBSA remains committed to driving sustainable energy development across the continent.