The Development Bank of Southern Africa (DBSA) has approved loans to the value of R25-billion over the past 10 years to finance development in the region. The figure is cited in the bank’s annual report, launched in Soweto on Thursday.
The bank, which describes itself as a financier, adviser and partner in development funding, estimates that since democracy its work has benefited four million households and created, with other funders, 527 874 jobs.
DBSA managing director Mandla Gantsho said the bank had transformed “into a vibrant and dynamic” development finance institution. Eighty percent of the 20-year-old bank’s disbursment have been made in the past decade.
In the past year the bank has made disbursements of R2,7-billion. Of these 85%, or R2,3-billion, have gone to local projects, with the balance of R414-million going to the region.
The projects are mostly infrastructural and range from roads in Saldanha Bay in the Western Cape to developing water and sanitation infrastructure on the Dolphin Coast in KwaZulu-Natal.
The Bank maintained its robust financial performance achieved under Gantsho’s stewardship.
The reforms were initiated by renowned economist Iraj Abedian, who still serves on the board of directors.
DBSA’s total assets now stand at R23-billion, including R2-billion in cash. Returns to shareholder funds (the government) were 6,8%. The bank’s surplus for the year stood at R763-million.
The bank’s governor, Minister of Finance Trevor Manuel praised it for its ability to wean itself from dependence on government subsidies. Manuel further noted that in the second decade of democracy the bar has been raised. “The aim is not to alleviate poverty, but rather to eradicate it,” Manuel said.