Infrastructure Fund to catalyze infrastructure delivery

Financing Social Infrastructure|Economic Infrastructure|Strategic Sectors announced South Africa Jan 1, 2018

EUR100B

Deal Value

The Infrastructure Fund, housed within the Development Bank of Southern Africa (DBSA), is seed funded by the National Treasury with R100 billion over ten years, aiming to catalyze one trillion Rands of infrastructure delivery in South Africa.

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Counterparts (2)

stakeholder

Infrastructure South Africa

company

Infrastructure South Africa (ISA) is a government entity in South Africa responsible for facilitating and coordinating infrastructure development projects across the country. It focuses on attracting investment, streamlining regulatory processes, and ensuring the efficient delivery of infrastructure projects to support economic growth and social development.

manager

Development Bank of Southern Africa

company

The Development Bank of Southern Africa (DBSA) is a development finance institution established to accelerate sustainable socio-economic development and improve the quality of life of the people of Southern Africa. It invests in economic infrastructure that supports growth and regional integration.

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.

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

National Treasury investor

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

Development Bank of Southern Africa developer

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

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."

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. "

institutional investors investor

development finance institutions investor

multilateral development banks investor

high quality Enriched Feb 19, 2026

Timeline

Announced

Jan 1, 2018

Signed

Aug 1, 2020

Closed

Get the full picture — timeline, source intelligence, and counterpart analysis.

Source

www.dbsa.org

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