Theodore Nkodo, vice-president of the African Development Bank (AfDB) in charge of the private sector as well as the north, east and south operations, and Mandla Gantsho, chief executive and managing director of the Development Bank of Southern Africa (DBSA), have signed a loan agreement of US$100mn to finance the development of infrastructure services in South Africa and other Southern Africa Development Community (SADC) countries.

The line of credit will provide financial resources to DBSA to support and strengthen the institution’s lending capacity, to enable it to provide loans and other development services for infrastructure and economic development in the SADC countries. In this way, the credit line would contribute to the goal of improving economic integration.

The DBSA contributes to development by providing finance and expertise to improve the quality of life of the people of southern Africa, mainly through the provision of infrastructure. Its project financing is complemented by the technical assistance operations aimed at enhancing the capacity of its clients to plan, implement and manage projects.

“The AfDB is acutely aware of the enormous task facing South Africa and the other countries of SADC in providing adequate infrastructure services for their citizens,” Nkodo says. “We are aware that the DBSA is very well placed to assist the efforts of the different countries to address these needs. Through this line of credit, the AfDB is pleased to be able to provide support to the DBSA in this task. We have no doubt that the resources of the LOC would be efficiently and properly utilized by the DBSA, as indeed you have done with the previous two lines of credit extended by the bank.”

Gantsho adds that the DBSA is well placed to mobilise funding for projects and programmes that are at the core of economic development of the SADC region. “Our partnership with the AfDB, which is strengthened by the signing of this third line of credit, signifies the resolve of both institutions to eradicate poverty and achieve better quality of life for the peoples of the SADC region,” he says.