The Development Bank of Southern Africa (DBSA) reported record disbursements of R20.7-billion in 2025/26, up from R17.5-billion in the prior year, and has indicated that the outlook for disbursements in 2026/27 is also strong as infrastructure receives greater prominence within government.

CEO Boitumelo Mosako said the State-owned development financier had finalised a strategy aimed at supporting a scaling up of project delivery by expanding the infrastructure pipeline and accelerating implementation.

She said particular attention was being given to project preparation, which had emerged as a constraint to implementation, as well as to achieving the objective of raising gross fixed capital formation to 30% of GDP, from about 14% currently.

The DBSA calculated its total infrastructure development support last year at R62.4-billion, which it said included the R20.7-billion in loan and equity disbursements, alongside R6.5-billion in delivered infrastructure value, R17-billion in approved prepared projects, the unlocking of R3.5-billion in infrastructure for under-resourced municipalities, and R14.7-billion in funds catalysed.

Mosako said this support was delivered while increasing net profit to a record R7.8-billion, a 47% rise from the R5.3-billion reported in the prior year.

The outlook for disbursements in the current financial year had been buoyed by a strong performance in the first half, during which approvals of some R35-billion were made.

Speaking at the group’s results, Finance Minister Enoch Godongwana underlined the DBSA’s central role in assisting government in meeting its objective of investing R1-trillion directly in infrastructure over the coming three years, while also unlocking private-sector participation in areas such as grid development, logistics and water.

Part of government’s direct expenditure would be geared towards addressing serious water and municipal backlogs, with R205-billion earmarked for municipal infrastructure within the larger R1-trillion commitment.

THREE-YEAR JOBURG INTERVENTION

The Minister also revealed that the DBSA would play a role, together with other institutions, in supporting a package of measures aimed at turning around the crisis-ridden City of Johannesburg.

“We have started to develop a plan for an intensive intervention in the City of Johannesburg.

“We intend to go there and stick around for three years . . . irrespective of the outcome of the elections.

“I can tell you now, whatever the outcome of the elections, any government that comes out of Johannesburg will need our support,” Godongwana said in an address made ahead of local government elections scheduled for November 4.

He also saw higher levels of infrastructure investment as central to raising the prevailing low levels of economic growth. South Africa’s GDP contracted by 0.2% in the second quarter, breaking a six-quarter streak of positive, albeit weak, growth.

Making reference to the 3% growth objective set recently by the Government-Business Partnership, Godongwana said the infrastructure backlog represented a growth opportunity that was not constrained primarily by financial resources, but by the capacity to implement.

Mosako said stronger execution would be the central focus at the DBSA in the coming period, alongside the creation of partnerships to accelerate delivery, including partnerships with the private sector.

The private-sector participation model used by the DBSA with government to facilitate the introduction of renewable-energy independent power producers over the past number of years was currently being adapted for sectors such as rail, ports, logistics and student housing.

In addition, the Credit Guarantee Vehicle to mitigate the risks for private electricity grid projects in the absence of government guarantees was also at an advanced stage of development and was expected to be capitalised by 2027.

“I’m quite excited that we have got to focus on this infrastructure story. We have got deficient infrastructure, but we must see it not only as a backlog, we must see it as an opportunity for investment and growth,” Godongwana said.