The DBSA delivered a promising set of results for the year ended 31 March 2019, despite the adverse impact of the subdued economy on the demand for infrastructure funding.
Development Bank of Southern Africa (DBSA), is tasked with delivering developmental infrastructure on the continent.
DBSA CEO Patrick Dlamini says the bank’s performance this year was encouraging, considering the difficult economic environment compounded by the governance challenges experienced in the public and private sector alike.
“Although economic conditions affected the level of disbursements, the trends we see emerging indicate we have the capacity to deliver far greater high-impact investment.
“We achieved unprecedented levels of project approvals as well as commitments and we expect to see many of these come to fruition, as disbursements, in the next financial year and beyond.”
DBSA said total approvals during the period rose to R39.7bn from R14.5bn previously, much of which would translate into disbursements in the current financial year. And it has seen a further R17 billion in commitments.
This is how development has impacted South Africa:
- 433 297 households to benefit from funds committed to municipalities;
- 6 728 learners benefitted from eight newly built schools;
- 40 307 learners benefitted from 63 refurbishments of storm-damaged schools;
- 1 087 local SMMEs and subcontractors employed in the construction projects;
- 61 500 people gained access to improved health facilities;
- R3.2 billion value of projects from black-owned entities approved for project preparation funding;
- R1.9 billion value of projects from black-owned entities were approved for funding.
The Bank achieved a net profit of R3.10 billion.
It delivered R37 billion in total infrastructure development support, with development loan and bond assets now standing R77.11 billion.
In his mid-term budget speech, the Minister of Finance allocated R625 million to strengthen project preparation in South Africa.
The DBSA is earmarked to manage a facility of R400 million which will be used toward the development of infrastructure projects to feed into the National Treasury’s Budget Facility for Infrastructure and the envisaged Infrastructure Fund.