The Development Bank of Southern Africa (DBSA) has reported record results for the 2002/03 financial year. The South African government-owned development finance institution, which is celebrating its 20th anniversary this year, reported that the total value of project approvals hit R3,8-billion, while disbursements reached a record high of R3,7-billion. This represented an increase of 106% over disbursements for 2001/02 and exceeded targets by 42%.
The bank’s surplus for the year — after taking into account a grant to the DBSA Development Fund and revaluation adjustments on derivative financial instruments, foreign assets and liabilities — increased by 105% to R1,28-billion.
Managing Director and CEO Mandla Ganthso said at a briefing on Monday that around 762 000 households benefited through enhanced access to basic services from the bank’s investment in infrastructure and this also led to a creation of an estimated 42 000 jobs.
The bank’s investments will contribute an estimated R8,4-billion to the country’s gross domestic product and an estimated R1,2-billion to the income of low income households.
Ganthso said a highlight of the year was the establishment of several partnerships, including one with the World Bank whereby the DBSA will provide professional support for the management of the World Bank’s prototype carbon fund in the Southern African Development Community (SADC) region.
The DBSA also concluded a partnership with electricity utility Eskom to test an innovative technology for generating solar energy and another with Sanlam to establish a fund for black economic empowerment.
Other highlights included a 42% increase in technical assistance disbursements to R14-million — a record high.
The Development Fund, which was established in 2001 with an initial capital commitment of R80-million by the DBSA, became fully operation and committed R86-million to initiatives aimed at establishing sustainable capacity within under-resourced municipalities.
The Board approved a further tranche to the fund of R150-million in 2002/03 and a further R230-million will be provided in 2003/04.
The DBSA is also committed to the New Partnership for Africa’s Development (Nepad) initiative and to this end, has been mandated by the South African government to operate in the entire SADC region. The bank’s investment in the region has expanded and its investment portfolio grew by R1,53-billion in 2002/03 and its cumulative support programme in the SADC now stands at R7,43-billion. Total loan approvals for the region grew by 26% for the year and the SADC region now accounts for 26% of the total cumulative approvals of the bank to date.
Gantsho says he views the bank’s achievements in the 2002/03 financial year as the beginning of a new era in which it will make an ever increasing contribution to turning the tide of poverty and underdevelopment both in South Africa and on the continent. – I-Net Bridge