The Infrastructure Fund, housed within the Development Bank of Southern Africa (DBSA), serves as a cornerstone for financing socio-economic infrastructure projects across the country. The fund focuses on blended finance solutions, which combine public and private sector capital to ensure efficient execution of infrastructure programs. This model not only attracts investment from private entities but also aligns with the United Nations Sustainable Development Goals (SDGs), which aim to eradicate poverty, combat climate change, and ensure prosperity for all.
Key Objectives
- Transform Public Infrastructure: The Infrastructure Fund aims to revolutionize how public infrastructure is financed and executed in South Africa, focusing on sustainable development.
- Catalyze Investment: With a seed funding commitment of R100 billion from the National Treasury over a ten-year period, the fund is set to catalyze an impressive R1 trillion in infrastructure delivery.
- Promote Good Governance: Collaboration with stakeholders, including National Treasury and Infrastructure South Africa (ISA), ensures that projects adhere to principles of transparency, equity, and cost-effectiveness.
Vision and Mission
The Infrastructure Fund is driven by a clear vision: Access to affordable and sustainable socio-economic infrastructure that fosters inclusive economic growth and job creation. Its mission is to become a center of excellence in blended finance solutions, positioning itself as a sustainable vehicle for infrastructure implementation across South Africa.
National Treasury’s Commitment
The National Treasury has made a significant investment in the Infrastructure Fund, with R18 billion allocated over three years (2021/22: R4 billion, 2022/23: R6 billion, 2023/24: R8 billion). This strategic commitment is vital for structuring blended finance solutions that can effectively meet the country’s infrastructure needs.
Conclusion
The DBSA Infrastructure Fund represents a transformative approach to infrastructure development in South Africa. By leveraging blended finance solutions, it aims not only to enhance the nation’s infrastructure but also to create jobs, boost economic growth, and ultimately improve the quality of life for all South Africans. As the country strives to meet its development goals, the Infrastructure Fund stands out as a beacon of hope and a pathway to a more prosperous future.