In attempting to address the pressing societal challenges, it is important that public development banks such as the Development Bank of Southern Africa (DBSA) collaborate with civil society to ensure that development outcomes are impactful and meet targeted needs.
Africa faces a host of challenges, not least of which is extreme poverty. More than a third of her people live below the international poverty line of $2.15 per person a day. This figure, updated as of last March, is determined by the World Bank and is based on research to determine its Poverty and Inequality Platform.
The levels of unemployment – especially among the youth – is problematic. General unemployment across the continent is some seven – eight percent, while it is way over 30% in South Africa. Lack of access to relevant education and lack of access healthcare, are also challenges for the continent. Other infrastructure challenges include, due to rapid urbanisation, a lack of housing, limited access to electricity, clean water, and transportation networks, as well as inadequate sanitation.
Coupled with all these challenges is climate change, as unusual weather patterns wreak havoc with Africa’s ability to feed her people, and almost half of her people facing food insecurity.
These challenges, however, are not insurmountable. Indeed, many of them offer opportunities for development finance institutions to partner with civil society, among other stakeholders, to identify the most pressing issues in each country and then develop a financial solution for these obstacles.
Infrastructure is the cornerstone of development as these projects can be developed to be sustainable, not only from the perspective of helping meet the United Nations’ Sustainable Development Goals (against which Africa lags) but also in terms of contributing to a sense of national unity and connecting regions that are isolated. Connecting regions allows for the promise of the African Continental Free Trade Area agreement.
Development banks cannot operate in isolation if Africa’s challenges are to be mitigated, and her objectives achieved. Partnering with civil society organisations allows banks to tap into grassroots insights, with respected and trusted institutions that have the same commitment to societal development – seeking to resolve many developmental challenges on the continent. Such collaboration leads to successes; resulting in developmental impact such as our achievement of having created more than 37 000 jobs in 2022, compared with only 300 jobs in 1994.
A key example of impactful partnerships will be demonstrated at the Finance in Common Summit (FICS) 2025, co-hosted by the Development Bank of Southern Africa (DBSA), the Asian Infrastructure Investment Bank (AIIB), and Agence Française de Développement (AFD). This collaboration underscores the importance of global cooperation in addressing Africa’s most pressing developmental challenges, leveraging innovative financing models, and aligning efforts for sustainable solutions.
These wins have allowed us to identify and engage in key strategic partnerships to address challenges on the continent, including climate change, to make an impact to resolve developmental issues.
Through partnership with civil society, development banks can fulfil their duty to develop key drivers of sustainability and to formulate and implement responsive strategies. It is through the combined efforts of institutional financiers and community stakeholders that sustainable development can be achieved.
