The Development Bank of Southern Africa (DBSA) has issued its first request for proposals for funding from the Infrastructure Investment Programme for South Africa (IIPSA).

The IIPSA is a €100 million (R1.5 billion) ground-breaking programme to provide grant funding in support of loans for essential infrastructure projects in South Africa and the region.​ The fund was established following a joint initiative between the South African government and the European Union (EU), and forms part of the EU’s broader intervention under its country strategy for South Africa.

The South African government and the EU appointed the DBSA as the implementing agent for the fund which is expected to support the implementation of the government’s infrastructure programme. It also aims to address the constraints to infrastructure development in South Africa and in the Southern African Development Community (SADC) Region.

DBSA CEO Patrick Dlamini says the establishment of this fund could not have come at a better time. A lack of adequate infrastructure funding is a key constraint to faster economic growth and social inclusion both in South Africa and in the SADC region. “We are pleased that the bank has been appointed as a fund manager to implement the IIPSA programme. 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,” he says.

 

Call for submissions

The DBSA has now requested project proposals from eligible public and private entities with a public mission to apply for IIPSA grant funding. This grant funding will be used to finance infrastructure investment projects in support of long term financing by participating finance institutions and other funders. This support may be in the form of project development and preparation, direct investment grants, interest rate subsidies, or loan guarantee cost financing and insurance premia.

Project proposals must be aligned to the South African Government Medium Term Strategic Framework and the National Development Plan which aim to improve the living conditions of South Africans by addressing poverty and unemployment, as well as contributing to enhancing regional economic integration in the SADC region. The projects proposals should focus on the energy, transport, water, ICT and social infrastructure sectors.

The following are excluded from participation:
• close corporations
• non-governmental organisations
• community-based organisations
• industry associations
• co-operatives
• non-profit organisations.

The request for proposals and the application guide are available on www.dbsa.org. There will be no briefing sessions and inquiries should be sent by email to iipsa@dbsa.org.