On 23 June 2025, the Development Bank of Southern Africa proudly hosted the inaugural South African Development Finance Institutions Forum (SADFIF). This was a groundbreaking initiative to unite development finance institutions (DFIs) across the country for greater impact.
The event brought together 23 DFIs representing national, provincial and district level interest, allowing for the establishment of a powerful platform for strategic coordination, investment collaboration, and knowledge sharing. This marks the first step towards a harmonised DFI ecosystem that is aligned with the Medium-Term Development Plan 2024–2029 et de National Development Plan 2030.
Key Highlights from the Day:
- Establishment of SADFIF: All DFIs committed to the formation of SADFIF, with DBSA designated as the coordinating entity.
- Unified Advocacy & Resource Pooling: Institutions agreed to promote joint policy advocacy, enhance knowledge exchange and coordinate investments.
- Strategic Focus Areas: These include Industrialisation, Agriculture, Renewable Energy, Infrastructure Development, SME Support, and Social Sector Investment.
- Enablers for Success: Digital transformation, local government partnerships, early project preparation and targeted advocacy were identified as critical levers for success.
- Operational Directives: A DFI-led economic strategy will ensure more coherent capital deployment and enhanced deal origination and pipeline sharing.
- Next Steps: Working groups have been established, ToRs drafted, and a digital research hub and project database are in development to strengthen coordination.
The launch of SADFIF represents a turning point for South Africa’s development finance community — a unified effort to drive sustainable, inclusive growth and unlock economic opportunities across the country.In a remarkable demonstration of development finance in action, the Uganda Development Corporation (UDC) has significantly expanded its investment footprint, positioning itself as a catalyst for Uganda’s industrialization and sustainable economic development.
Kazungula Water Project Commissioned: A Milestone for Regional Water Security
The Development Bank of Southern Africa (DBSA), in partnership with the SADC Secretariat and the Government of the Republic of Zambia, proudly announced the commissioning of the Kazungula Water Supply and Basic Sanitation Project on 9 June 2025 in Kazungula, Zambia.
Commissioned by President Hakainde Hichilema, represented by Minister of Water Development and Sanitation, Collins Nzovu, this landmark initiative strengthens water and sanitation infrastructure in one of SADC’s most strategic trade corridors – where Zambia, Botswana, Namibia, and Zimbabwe converge.
Funded through the SADC Water Fund, with the DBSA as an implementing partner, this €12 million project was primarily financed by the German Government via BMZ and KfW Development Bank, with co-financing from the Zambian Government and additional preparation funding from the SADC Project Preparation and Development Facility (PPDF).
Key project features include:
- A new raw water intake on the Zambezi River
- Upgraded water treatment works and pumping stations
- Over 29 km of new pipelines
- Community water kiosks for equitable access to water
- A 220 kV solar PV plant, enabling off-grid, uninterrupted water supply
The project now delivers clean, reliable water to over 20,000 residents in an effort to dramatically improve health, safety and livelihoods. Many Kazungula residents previously had only four hours of water daily and risked their lives fetching water from the Zambezi River.
DBSA Independent Non-executive Director Petrus Matji noted, “The Kazungula Water Project’s goal is to deliver reliable and safe water, transforming lives and uplifting the community. This initiative underscores the DBSA’s commitment to building a resilient, inclusive, and integrated SADC region.”
This project directly supports SDG 6 (Clean Water & Sanitation) and SDG 11 (Sustainable Cities & Communities), while also enhancing climate resilience, economic opportunity and regional integration. With over 220 local jobs created, the Kazungula Water Project is not just a water solution, it is a model for cross-border cooperation and sustainable development in action.
