The need for infrastructure development remains critical, according to Patrick Dlamini, CEO of the Development Bank of Southern Africa (DBSA).

“We are playing an increasing role in ensuring this happens, and in ensuring that resources are reallocated from under-performing programmes to critical frontline services,” he said.

The DBSA provided infrastructure development support of R21.4bn in the last financial year, with total disbursements increasing from R12.7bn in 2013/14 to R13bn in 2014/15.

In the process, the Bank has made a significant contribution to the rollout of government infrastructure programmes and in increasing the performance of under-capacitated municipalities.

“These are challenging times. The South African economy is subdued, while the rest of of Africa is showing variable growth due to fluctuation in oil price, strength of the dollar and an increase in interest rates and inflation fluctuation continues,” Dlamini said.

“Two years into our restructuring process, it is clear that the DBSA is not only able to deliver strong financial results in a challenging environment, but is equally capable of increasing its development impact,” he added.

The DBSA continues to play a pivotal role in development, with more than 41% of the Bank’s funding going to municipal financing – bringing benefits to almost a quarter of a million households.

The Bank supported the construction of 15 schools, 1,128 rural houses, 60 doctors’ rooms and refurbished 26 clinics in South Africa.

The Bank also played a crucial role in supporting non-municipal development financing.

The Bank provided project preparation financing for 9 000MW of coal-based independent energy producers, and 340MW of gas; and provided support for the procurement of more than 170 buses for bus rapid transit systems.

“We will be expanding our support in these sectors over the next year, increasing our commitment to ensure a cumulative development impact – in particular in the energy sector, where we will be contributing to the funding of more than 3,500MW in renewable energy, and 12,600MW in coal,” said Dlamini.

The DBSA reached a record R13bn in disbursements, compared to R12.7bn in the 2013/14 financial year.

The DBSA showed strong financial performance over the last financial year, recording a net profit of R1.2bn against the R787m in 2014.

The Bank’s total assets grew by 11% to R71bn, with the total development asset book increasing by 14% to R63.1bn.

Non-performing loans, after specific provision improved to 1.9%, compared to 2.2% in 2014.

“Remarkable work has been done to reposition the organization to increase its development impact. “We have implemented a more robust process to set targets and assess performance, and it is clear that this is bearing fruit,” said Dlamini.

 “We are pressing all the right buttons – our balance sheet is stronger, our development impact continues to increase, and we are clearly taking our key stakeholders with us on this new journey,” he said.

“Given the current challenges – and the challenges of the future – we believe the DBSA is well-placed to continue its central role as the financial engine room of South African development, and to play a major role in the development of the continent,” he added.

The Development Bank of Southern Africa is one of the leading development financial institutions in Africa.

The DBSA provides financing, project preparation and implementation support for economic and social infrastructure in South Africa and the rest of Africa.