By Thebe Mabanga
The Development Bank of Southern Africa (DBSA) has posted record financial results, reporting higher profits, improved loan collections, and expanded infrastructure support for municipalities and schools.
The results, for the year ending March, were released on Wednesday.
Despite what it described as a challenging domestic and global environment, the state-owned financier delivered a record net profit of R5.3 billion, up 14.4% from R4.6 billion last year.
Net interest income rose 8.6% to R8.4 billion, while operating income increased 12.3% to R8.8 billion. Sustainable earnings grew 13.7% to R5.1 billion.
The DBSA also maintained strong asset quality, with net non-performing loans at just 1.2% of total development loans and bonds of R114.6 billion, down by 0.5% from last year.
Global conditions weighed on performance, with supply chains disrupted by US trade tariffs, conflicts in Europe and the Middle East, and tighter financial markets.
Domestically, easing load-shedding and structural reforms offered some relief, but challenges remained, including logistics bottlenecks, weak municipal financial management, and limited government capacity to implement infrastructure policy.
During the year, the bank disbursed R17.5 billion in loans and equity (up 2.9% from R17 billion), supported by a R120 billion asset base.
Collections rose 19% to a record R27.4 billion. Its debt-to-equity ratio, including R20 billion callable capital, improved to 78% from 89%, well below the 250% regulatory limit.
The DBSA also mobilised R91.3 billion in infrastructure support, including R22.9 billion in catalysed funds.
The bank said it delivered R5.2 billion in infrastructure implementation support and unlocked a further R2.6 billion for under-resourced municipalities.
Key projects worth R39.9 billion were enabled and supported, while projects valued at R2.4 billion were prepared and approved. In addition, specially identified District Municipalities received R800 million.
The DBSA also made a notable impact on school sanitation through the Department of Basic Education’s SAFE programme, with 22,722 learners benefiting from new sanitation facilities built in 98 schools funded by the programme.
A further 11,397 learners benefited from improved sanitation facilities constructed in 67 schools funded through provincial allocations.
In terms of inclusive development, black-owned enterprises delivered projects worth R4 billion, while women-owned businesses accounted for R2.6 billion.
A total of 956 small, medium and micro enterprises (SMMEs) were contracted to deliver projects, with local construction SMMEs receiving R584 million in benefits.
These initiatives created approximately 35,000 jobs and provided skills training to 1,650 young people.
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