Support the Development Bank of Southern Africa (DBSA) in the development of social infrastructure

While significant progress has been made by South Africa in many areas of the 2030 Agenda, there is still a long way to go, particularly in terms of reducing social inequalities. In this context, improving access to education, affordable housing and quality care constitutes an important lever for the achievement of these objectives. South Africa has placed the implementation of the 2030 Agenda and the achievement of Sustainable Development Goals (SDGs) at the heart of its public policies through the National Development Plan (NDP). 

In this context, the Development Bank of Southern Africa (DBSA), a long-standing partner of AFD since 1994 and member of the International Development Finance Club (IDFC) since 2011 intends to continue its role as a key player in favour of the financing of the SDGs in South Africa. At this end, the bank wishes to reinforce its processes of analysis and alignment of its operations with the SDGs and argument its social infrastructure portfolio and exert strong impact on the reduction of social inequalities in South Africa.

The main purpose of the project is to strengthen the financing of the 2030 Agenda and the achievement of SDGs in South Africa through supporting the implementation of high social impact projects in favour of sustainable development.

More specifically, this project aims to:

• Support the DBSA in the development of high-impact social infrastructure financing with specific impact on the reduction of inequalities and contribution to the just transition. 
• The funding will target more specifically education, health and social housing (including student housing) sectors. Strengthen the operational and strategic capacities of the DBSA in terms of integrated sustainable development approach. This will advance DBSA’s mandate as a public development institution and promote the achievement the 2030 Agenda.

In order to meet this objective, the project will be structured around two financial instruments: 

• A €50 million line of credit to finance social infrastructure investments in South Africa, specifically targeting the health, education and social housing sectors with a strong impact on reducing social inequalities in South Africa. 
• €700K to finance a technical assistance program to strengthen DBSA's capacity to align its strategy and operations with sustainable development objectives. This grant is subject to a differentiated award process under delegation.

The main expected outcomes of the project are: 

• A strengthening of DBSA in its high social impact, SDG-aligned social infrastructure investment activities in South Africa; 
• The implementation of an integrated approach to sustainable development in all of the bank's projects in order to accelerate the achievement of the SDGs in South Africa, in the framework of the 2030 Agenda. 

Specifically, the credit facility will support social infrastructure investments focused on the education, health and social housing sectors in South Africa. It will contribute to the development of DBSA's social infrastructure portfolio, which is aligned with the SDGs and contributes significantly to the reduction of social inequalities. 

Through the TA program, it is expected that DBSA's strategy for an integrated approach to all dimensions of sustainable development in its operations will be strengthened. The technical assistance program will contribute to a systematic alignment of DBSA's strategy and operations with the SDGs.