The Development Bank of Southern Africa (DBSA) has raised R196-million to help a black economic empowerment (BEE) firm acquire a 25% share in the company building the Gautrain rapid rail link, it said on Wednesday.
The beneficiary is SPGC, a subsidiary of the Strategic Partners Group.
The DBSA helped to finance the acquisition of the stake — bought in January — together with the Industrial Development Corporation, Rand Merchant Bank and Standard Bank.
DBSA’s project finance manager, Tokolo Nchocho, said the money would go towards funding equity obligations, standby equity and financing of operational costs.
”DBSA is delighted to be part of this exciting venture. By assisting the empowerment shareholders to meet their obligations to the Gautrain project company, the bank is adding further impetus to its drive to promote broad-based BEE”.
”Furthermore, the bank also believes that economic efficiencies will be enhanced through the involvement of the private sector in the delivery of infrastructure and provision of transportation services,” said Nchocho.
SPGC was formed to partner with other local and international shareholders in the Bombela Consortium. It was established in 2002 by parties representing the interests of previously disadvantaged communities. It is led by the Black Management Forum Investment Company.
Nchocho said that the investment was not only meant for Gauteng, as it would also have spin-offs for the African transport sector. — Sapa