DBSA warns of governance challenges in SA as disbursements fall by a quarter
The Development Bank of Southern Africa earned 17% more in interest in the year to end-March as disbursements drop 26% to R9bn
The Development Bank of Southern Africa (DBSA), which is tasked with delivering developmental infrastructure on the continent, flagged governance risks as the reasons for lower disbursements in its year to end-March.
Disbursements fell 26% to R9bn during the period, while net interest income rose 17% to R4.49bn. Net profit rose 9% to R3.09bn.
The DBSA has been criticised in recent years for failures in infrastructure development at a municipal level, as well as criticism that funding is concentrated in major metros.
A number of prominent business leaders have publicly called on the government to urgently act to revive economic growth, the latest being Capitec CEO Gerrie Fourie on Thursday, who called for additional investment in education.
A difficult economic environment compounded by governance challenges in both the private and public sector weighed on disbursements, said DBSA CEO Patrick Dlamini.
The DBSA had, however, said total approvals during the period rose to R39.7bn from R14.5bn previously, much of which would translate into disbursements in the current financial year.
“The DBSA has a healthy pipeline of projects that form a solid springboard for success in the future,” Dlamini said. “Our solid foundation of financial sustainability is key to realising our potential for development impact.”