A R1.5 Billion programme to provide grant funding in support of loans for essential infrastructure projects in South and Southern Africa has been launched by the European Union (EU) and the Development Bank of Southern Africa (DBSA).

Patrick Dlamini, DBSA CEO, says, “The establishment of this fund could not have come at a better time.”

“Adequate infrastructure funding had become a key constraint to faster economic growth in both South Africa and the SADC region.”

“We therefore view this programme as a strategic intervention to fund South Africa’s national and regional infrastructure projects, especially at the critical initial stages to prepare projects to bankability.”

Roeland van de Geer, EU Ambassador to South Africa, says, “The fund will provide innovative financing from South African and European development finance institutions. It also aims to attract private financing into projects with a high socio-economic return by enhancing the feasibility and project quality and by reducing the risk associated with such projects.”

A request for proposals will be issued in early April inviting potential recipients to propose infrastructure investments whose development will be enhanced by the use of grant fudning alongside other forms of financing.

(source: allAfrica.com)