The Development Bank of Southern Africa (DBSA) and the Agence Française de Développement (AFD) group have renewed their strategic cooperation agreement – extending the partnership to 2030 to accelerate investment in infrastructure, renewable energy and climate-resilient development.
Since its launch in 1994, the collaboration has mobilised more than €526 million (about R10,5 billion) for infrastructure projects. The new agreement will expand this scope, introducing instruments such as credit guarantees and outcome-based financing to de-risk large projects and attract private capital into South Africa’s energy sector, says DBSA CEO Boitumelo Mosako.
The partnership is expected to support financing of new generation capacity, grid expansion, embedded generation and transmission upgrades. The announcement comes as South Africa’s Integrated Resource Plan 2025 estimates investment needs of more than R2,2 trillion by 2039 to meet generation and transmission targets.
“The agreement will support the acceleration of sustainable infrastructure development and strengthen the role of development finance institutions in catalysing independent power producer projects, corporate power purchase agreements and wheeling arrangements,” Mosako says.
