Communication and Media Outreach Officer
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Rome/Cape Town, 26 February 2025. The International Fund for Agricultural Development (IFAD) and the Development Bank of Southern Africa (DBSA) have signed a Memorandum of Understanding (MoU) to join forces in rural development projects across the African continent.
The MoU creates a framework for both IFAD and DBSA to mutually benefit from each institution’s expertise, with the goal of investing in people-centred projects that enhance wider rural economic development in African member states.
The agreement was formalized during a signing ceremony held on the sidelines of the Finance in Common Summit (FiCS) in Cape Town today. It provides a pathway for a co-financing partnership between one of Africa’s leading development finance institutions with a four-decade long track record of financing sustainable infrastructure and a United Nations agency and international financial institution (IFI) specializing in lifting rural populations out of poverty with almost 50 years of experience in rural and agricultural development.
“We are excited to be working with a leading Public Development Bank such as DBSA,” said IFAD President Alvaro Lario. “The partnership offers an important opportunity to jointly leverage additional resources and expertise for our projects, enhancing their impact on rural development, poverty reduction, climate resilience and economic growth across Africa.”
“Infrastructure is at the heart of what we do at DBSA, and our impact is strengthened through the power of partnerships. By working together with like-minded stakeholders, we unlock innovative solutions, drive sustainable development, and create lasting change in communities. It is through collaboration that we harness our collective strength to build a more resilient and prosperous future for all,” said Boitumelo Mosako, CEO of DBSA.
Under the agreement, IFAD and DBSA will actively support a co-financing pipeline where IFAD-supported projects are further bolstered financially and technically by the bank, contributing to improved project design and implementation, ultimately ensuring enhanced development outcomes in rural communities.
The ambitious partnership embraces both financial and technical aspects of development. IFAD and DBSA will cooperate on six areas: integrated sustainable development that enhances the well-being of targeted rural communities; environmental conservation and resilience through innovative practices and financing instruments; empowerment of rural communities with improved value chains and social infrastructure that contributes to dynamic economies; knowledge sharing and capacity building; regional collaboration and financing for transforming rural areas; governance and policy support.
IFAD’s regional office in East and Southern Africa will work closely with DBSA to implement the MoU.
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Press release No.: IFAD/16/2025
IFAD is an international financial institution (IFI) and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than US$25 billion in grants and low-interest loans to fund projects in developing countries
A wide range of photographs and broadcast-quality video content of IFAD’s work in rural communities are available for download from our Image Bank.
Established in 1983, the Development Bank of Southern Africa (DBSA) is a government-owned development finance institution committed to promoting regional integration and economic growth through sustainable development projects across South Africa, the Southern African Development Community (SADC), and the broader Sub-Saharan Africa region. With a steadfast mission to "Build Africa's Prosperity," DBSA drives inclusive growth and pioneers innovative solutions that advance socio-economic development across the continent. In the 2023/2024 financial year, DBSA reported a net profit of R 4.6 billion, and sustainable earnings increased by 7 per cent, supported by strong net interest income growth. The Bank maintained operational efficiency, improving its cost-to-income ratio to 21 per cent, well below the 35 per cent benchmark, demonstrating its commitment to financial prudence. Through strategic investments and sound financial management, DBSA continues to play a crucial role in addressing Africa's infrastructure needs, fostering economic resilience, and contributing to the continent’s sustainable development goals.
