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Infrastructure

Advancing Economic Growth Through Infrastructure Development

Over the past 30 years, the Development Bank of Southern Africa has empowered communities and encouraged investment, shaping a more inclusive society, writes Zeph Nhleko, chief economist at the bank.

Infrastructure is a cornerstone of modern society, providing much more than physical structures. In many African regions, the construction of roads, bridges, railways and telecommunication networks represents a lifeline for communities historically lacking access to resources and mobility. These projects have far-reaching impacts, promoting social cohesion, empowering individuals and creating new pathways for economic participation. Supporting these efforts plays a critical role in reducing transportation costs, attracting investment and fostering tourism.

Improved infrastructure opens doors to education and employment, allowing students to travel to schools and universities and connecting workers with new job opportunities. It also brings technology and telecommunications advancements, bridges digital divides and allows communities to access information and online resources. This enhanced connectivity fosters a more educated and empowered workforce, fuelling further economic growth.

Committed to sustainability and social cohesion 

The Development Bank of Southern Africa (DBSA) recognises that infrastructure is more than concrete and steel; it’s a stimulant for economic growth, social cohesion and long-term sustainability.

By investing in roads, bridges, railways, ports, water systems, energy systems and telecommunication networks, we are not only connecting regions and creating opportunities, but also fostering a sense of unity and resilience. Our commitment to building infrastructure with purpose reflects our broader vision of a more inclusive and empowered Africa, where every project paves the way for a brighter future.

Infrastructure development represents freedom by improving lives and empowering communities. The DBSA has highlighted in its Integrated Annual Report 2023, that key initiatives supported in the past include the water programme office, created by the bank’s Project Preparation Division to address service delivery backlogs in places such as Johannesburg, Ekhurhuleni and eThekwini.

The bank has also funded the expansion and refurbishment of critical infrastructure, including wastewater treatment plants, landfill sites, roads, electrical substations and renewable energy projects, indicating a shift toward sustainable infrastructure. These efforts demonstrate the DBSA’s commitment to innovation and sustainable development in Southern Africa.

In the 2022/23 financial year, local small, medium and micro enterprises and subcontractors benefitted from construction-related activities, and the creation of 10 362 temporary and permanent jobs in 2022/23 reflects a broader economic liberation. The construction and upgrade of sanitation facilities in 177 schools benefitted 68 687 learners, while 29 555 learners benefitted from the refurbishment of 117 schools and 2 208 from newly built schools. This collective progress leads to a brighter, more equitable future, with infrastructure development providing a tangible path toward economic freedom.

Beyond economic benefits, infrastructure projects contribute to a sense of national unity, connecting previously isolated regions. They promote social cohesion and encourage a shared sense of destiny. As the DBSA invests in infrastructure, it highlights the importance of resilience and sustainability in the face of climate change and environmental challenges. The bank’s focus on durable infrastructure ensures that the benefits of these projects endure for generations.

Through partnerships with governments, businesses and civil society, the DBSA is creating infrastructure that serves as a beacon of hope and empowerment. These projects are more than mere structures; they are transformative tools that can lead to a more connected and vibrant Africa. As the DBSA continues to invest in critical infrastructure, its commitment to sustainable, inclusive development is a testament to the lasting impact that these infrastructures can have on a nation’s trajectory.

We believe that infrastructure is the cornerstone of development progress, serving as a symbol of freedom, connectivity and opportunity. As we celebrate three decades of dedication to economic growth and social advancement in the democratic era, we remain committed to building infrastructure that transforms communities and fosters resilience and sustainability.

Through partnerships and investments, the DBSA is laying the foundation for a more prosperous and interconnected Africa, where every project contributes to a legacy of liberty and progress for generations to come.

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