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DBSA and AFD Group strengthen strategic partnership to accelerate sustainable development in Africa
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A new Memorandum of Understanding (MoU) extends collaboration through 2030, focusing on climate finance, infrastructure development, and nature-positive investments
Washington D.C. – 16 October – The Development Bank of Southern Africa (DBSA), the Agence française de développement (AFD), and PROPARCO have signed a Memorandum of Understanding (MoU) formalizing their strategic partnership through December 2030. This agreement builds on over 25 years of collaboration and sets out an ambitious framework for joint action in support of sustainable development across the African continent.
Since 1994, the partnership has mobilized over EUR 526 million in financing, benefiting more than 3 million people through investments in basic infrastructure, renewable energy, and climate resilience. Notable achievements include DBSA's inaugural €200 million green bond in 2021, fully subscribed by AFD, which catalyzed the development of South Africa's green bond market.
This new MoU identifies five strategic priority areas:
- support to municipalities and provinces,
- financing for state-owned enterprises in critical sectors such as transport and energy,
- private sector development,
- the Just Transition Financing Mechanism,
- and nature-positive infrastructure investments that deliver measurable climate and biodiversity outcomes.
“This renewed partnership with the AFD Group marks an important milestone in our shared commitment to sustainable development across Africa. By aligning our resources around climate finance, infrastructure and nature-positive investment, we not only amplify our impact but also deepen our responsibility to the communities we serve.” said Boitumelo Mosako, CEO, DBSA.
"AFD Group is proud to deepen its longstanding collaboration with DBSA, which has been in existence for over 25 years" said Rémy Rioux, CEO of the AFD group and Chairman of Finance in Common. “Together, we are advancing innovative financing mechanisms and knowledge partnerships that address the challenge of financing sustainable development in an age when global issues imply country-led solutions. Willing to work as a seamless system is a mindset we share with DBSA and our peers from IDFC, within the framework of the Finance in Common System (FiCS).”
For Françoise Lombard, CEO of Proparco: “As a subsidiary of the AFD Group dedicated to financing the private sector, Proparco is pleased to contribute to strengthening the partnership between the AFD Group and DBSA, a long-standing partner. Through this MoU, we are deepening our synergies in support of impact finance in South Africa and across the region, in order to seize new financing opportunities in sectors such as renewable energy, social housing, and infrastructure.”
Beyond traditional lending, the partnership will explore innovative financial instruments including credit guarantees, climate insurance products, and outcome-based bonds. Technical cooperation will focus on integrating climate and nature-related risks into investment decisions, while knowledge partnerships will advance research on biodiversity finance, macroeconomic modeling, and regulatory frameworks for public development banks.
The Parties will also collaborate within the International Development Finance Club (IDFC), contributing to global initiatives such as the Global Guarantee Platform aimed at mobilizing private capital for climate-aligned development.
Implementation of the MoU will be coordinated through bi-annual project team meetings and annual strategic dialogues between senior leadership to identify new opportunities and strengthen policy engagement.