The Board of Directors of the African Development Bank (AfDB) approved on Thursday, 3 February 2010 in Tunis, a USD 300-million line of credit (LOC) to the Development Bank of Southern Africa (DBSA) for on-lending to infrastructure projects within the Southern African Development Community (SADC) region.

The 5th DBSA LOC will accelerate sustainable socio-economic development by funding physical, social and economic infrastructure projects. Major sectors will include:

Energy, transport, ICT, health, housing, ports, roads, and water and sanitation;

Infrastructure and related sub-projects in resource-based industries such as agri-business and mining; and

Manufacturing and infrastructure relating to tourism.

The project will ultimately promote broad-based economic growth, job creation, poverty reduction, regional integration and prosperity in the SADC region.

Infrastructure has been recognized as a key priority by all SADC member countries, the Bank in general, and the Private Sector Department in particular. DBSA5 LOC will alleviate credit constraints to private and quasi-public economic initiatives. It will facilitate the development of a highly efficient productive private sector that can compete in domestic, regional and international markets.

This transaction further demonstrates the importance the Bank attaches to the long-standing strategic partnership with DBSA, particularly, its unique public policy role which enable's DBSA to undertake projects and programs whose risk profiles are beyond the private sector.

Contacts

Onike Nicol-Houra