Infrastructure Fund to catalyze infrastructure delivery

Deal Analysis

The South African National Treasury's commitment of R100 billion over ten years to the Infrastructure Fund, housed within the Development Bank of Southern Africa (DBSA), represents a significant effort to stimulate infrastructure development in the country. The fund aims to catalyze a total of one trillion Rands in infrastructure investments across social, economic, and strategic sectors. The DBSA, as the fund manager, will play a crucial role in identifying, structuring, and overseeing projects to ensure effective capital deployment and achievement of the fund's objectives. Infrastructure South Africa is also a key stakeholder in this initiative. This financing initiative is notable for its scale, with the potential to unlock substantial infrastructure development. The involvement of the National Treasury and the DBSA lends credibility and stability to the fund. The fund's focus on a broad range of infrastructure sectors suggests a comprehensive approach to addressing South Africa's infrastructure needs. The success of this initiative will depend on the DBSA's ability to attract private sector investment and effectively manage project risks, ultimately contributing to economic growth and improved social outcomes.

R100 billion seed funding from the National Treasury.
Target of catalyzing one trillion Rands in infrastructure investment.
Managed by the Development Bank of Southern Africa (DBSA).
Focus on social, economic, and strategic infrastructure sectors.

Market Context: South Africa faces significant infrastructure gaps across various sectors, hindering economic growth and social development. This deal aims to address these challenges by attracting investment and accelerating project delivery.

Source Intelligence

KEY DETAILS

The contribution is intended to be key to the structuring of blended finance solutions. This seed funding is targeted at catalysing one trillion Rands of infrastructure delivery within the country. In the 2021 Budget, National Treasury has allocated a total of R18billion over the next 3-year cycle as follows 2021/22: R4billion, 2022/23: R6billion and 2023/24: R8billion.

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Deal Size

The Infrastructure Fund has been seed funded by the National Treasury in the amount of R100billion over a ten-year period.

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Location

South Africa, with a significant portion of the population unemployed and largely excluded from the labour market, needs industrialisation and infrastructure development to support its efforts to bolster employment and reduce poverty.

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Announcement

The Infrastructure Fund announced by South African President Ramaphosa in 2018, addresses the need for blended finance to enable the efficient execution of socio-economic infrastructure programmes and projects in South Africa.

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Signing

The Infrastructure Fund’s mandate has been captured in a tripartite Memorandum of Agreement signed in August 2020 by National Treasury, the Department of Public Works and Infrastructure: Infrastructure South Africa (ISA) and the DBSA.

PARTIES MENTIONED IN SOURCE

N

National Treasury investor

"The Infrastructure Fund has been seed funded by the National Treasury in the amount of R100billion over a ten-year period."

D

Development Bank of Southern Africa developer

"The Infrastructure Fund is currently housed within the Development Bank of Southern Africa (DBSA)."

D

Department of Public Works and Infrastructure: Infrastructure South Africa (ISA) N/A

"The Infrastructure Fund’s mandate has been captured in a tripartite Memorandum of Agreement signed in August 2020 by National Treasury, the Department of Public Works and Infrastructure: Infrastructure South Africa (ISA) and the DBSA."

p

private sector investor

"The aim of the Infrastructure Fund is to transform public infrastructure through bespoke blended financing solutions by sourcing and blending capital from the private sector, institutional investors, development finance institutions and multilateral development banks. "

i

institutional investors investor

"The aim of the Infrastructure Fund is to transform public infrastructure through bespoke blended financing solutions by sourcing and blending capital from the private sector, institutional investors, development finance institutions and multilateral development banks. "

d

development finance institutions investor

"The aim of the Infrastructure Fund is to transform public infrastructure through bespoke blended financing solutions by sourcing and blending capital from the private sector, institutional investors, development finance institutions and multilateral development banks. "

m

multilateral development banks investor

"The aim of the Infrastructure Fund is to transform public infrastructure through bespoke blended financing solutions by sourcing and blending capital from the private sector, institutional investors, development finance institutions and multilateral development banks. "

high quality Enriched Feb 19, 2026