The Development Bank of Southern Africa (DBSA) has received a long-term foreign-currency issuer rating upgrade from Moody’s to Ba2 from Ba3. The Bank’s standalone assessment has also been upgraded to ba3 from b1, and the long-term national scale issuer rating to Aa2.za from Aa3.za. The upgrades demonstrate the DBSA’s improved funding and liquidity profile, sustainably strong capital buffers, and the ability to maintain low levels of non-performing loans of around 3.8% of gross loans despite prevalent asset risks and a fragile operating environment.
The Bank’s confirmed stable outlook is in line with the sovereign rating, given that the DBSA is 100% owned by the government. It acknowledges that the Bank’s assets are adequately cushioned from risks and pressures emanating from the current operating environment. The Bank could be upgraded further if the operating environment improves, the government is upgraded, the Bank’s funding profile improves, or its credit concentration improves.
This rating upgrade also confirms that the DBSA is a high-performing state-owned entity. For over 42 years, the DBSA has championed African infrastructure development and capacity building, collaborating with continental and global partners to fulfil its mandate of facilitating economic growth and development as well as capacity building. Driving economic transformation and access is a critical part of this mandate.
The DBSA’s work involves technical and financial partnerships that happen behind the scenes in the Bank’s role as a financier, advisor and implementor – meaning that at times the general public’s awareness of the Bank’s specific activities could be limited. Individuals may benefit from the outcomes of DBSA-supported projects such as roads, schools, clinics and so on, without necessarily knowing the Bank was involved.
The DBSA’s institutional strength is anchored on its robust governance framework and rigorous control mechanisms. While people remain the most valued asset for the DBSA, the Bank is equally defined by its uncompromising commitment to extremely thorough governance. As a leading African Development Finance Institution (DFI), the Bank maintains a robust governance framework aligned with international best practices to ensure transparency and accountability. This system is directed by the Board of Directors and supported by specialized committees, all operating under a strict Code of Ethics. DBSA governance processes have proven their durability under scrutiny and continue to evolve in order to manage risks and support sustainable infrastructure development to build prosperity across the continent.
Over the years the Bank has demonstrated strong, sustainable growth while effectively delivering on its mandate. As at the half-year mark at end of September 2025, the Bank had supported infrastructure development to the tune of R43 billion – with about R11.1 billion in loans and equities; R2.9 billion of funds catalysed through its activities; R2.3 billion of infrastructure unlocked in municipalities; R24.5 billion of key projects enabled and R2.4 billion of infrastructure delivered. This level of infrastructure support has not only contributed to capital formation aggregates but has also enabled the Bank to facilitate more than 12 000 jobs, support Black entities and place 40% of the total procurement spending with B-BBEE entities.
The DBSA also finances and develops various growth-inducing mega infrastructure projects. These are large-scale, complex projects designed to drive long-term economic development and transform the economies and societies where these projects are located.
These types of projects, generally falling under water and sanitation, transport, energy, and information and communications technologies, education, health and social housing sectors, are at the center of creating jobs, modernising infrastructure and improving access. For example, there is an estimated 12.4 million people in South Africa that are perfectly capable and willing to work but cannot find jobs. This represents the primary challenge currently facing our nation, the resolution of which necessitates structured and targeted investment in the construction and built environment, among others.
Some of the mega projects developed by the DBSA, as part of public investment, include the reconstruction of parliament in Cape Town valued at R4.6 billion; the construction of Siloam and the Limpopo Academic mega hospitals in Limpopo for a combined R6.8 billion; the Rooiwal Wastewater Treatment Works in Hammanskraal valued at R633 million and monitoring the Northern Cape Accelerated Housing Delivery in Kimberley and Upington valued at R1 billion.
The DBSA’s rating upgrade therefore reflects its financial resilience and crucial role in infrastructure development in South Africa and the rest of the African continent. The DBSA is driving transformative infrastructure development projects across the network and social sectors to address the investment, growth and unemployment challenges to achieve the desired economic development.
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About DBSA
The Development Bank of Southern Africa is one of the leading development financial institutions on the continent. Our primary purpose is delivering impactful development finance solutions that ignite transformative change in South Africa and on the rest of the African continent. Improving the quality of life of people in Africa is the fundamental focus of our development impact. We aim to bend the arc of history towards shared prosperity through multifaceted investments in sustainable infrastructure and human capacity.
Our product solutions span all phases of the infrastructure development value chain from infrastructure planning and project preparation, across a range of financing and non-financing investments to infrastructure implementation and delivery. Our primary areas of focus include Energy, ICT, Transport, Water and Sanitation. Our secondary area of focus includes Education, Housing and Health.
Media Contacts
For DBSA
Email: dbsa@dbsa.org
Tel: +27 11 313 3911