The Development Bank of Southern Africa (DBSA) has signed a memorandum of understanding (MoU) with French finance institution Agence française de développement (AFD) and its subsidiary Proparco to formalise their strategic partnership through to December 2030.

The agreement builds on more than 25 years of collaboration between the institutions and sets out a new ambitious framework for joint action in support of sustainable development across Africa.

The DBSA, the AFD and Proparco have since 1994 mobilised more than €526-million in financing that benefitted more than three-million people through investments in basic infrastructure, renewable energy and climate resilience.

A notable milestone of the partnership includes the DBSA’s inaugural €200-million green bond in 2021, which was fully subscribed by the AFD and helped catalyse the development of South Africa’s green bond market.

The new MoU lists five strategic priority areas of focus: support to municipalities and provinces; financing for State-owned enterprises in transport and energy; private sector development; just transition financing mechanisms; and nature-positive infrastructure investments that deliver measurable climate and biodiversity outcomes.

Beyond traditional lending, the partnership will explore innovative financing instruments including credit guarantees, climate insurance products and outcome-based bonds.

The entities’ technical cooperation will include integrating climate and nature-related risks into investment decisions, while knowledge partnerships will advance research on biodiversity finance, macroeconomic modelling and regulatory frameworks for public development banks.

The institutions will also collaborate within the International Development Finance Club to contribute to initiatives such as the Global Guarantee Platform, which mobilises private capital for climate-aligned development.

Implementation of the MoU will be coordinated through bi-yearly project team meetings and yearly strategic dialogues between senior leadership to identify new opportunities and strengthen policy engagement.

DBSA CEO Boitumelo Mosako says the renewed partnership with the AFD and Proparco marks an important milestone in their shared commitments to sustainable development on the continent.

“By aligning our resources on climate finance, infrastructure and nature-positive investment, we not only amplify our impact but also deepen our responsibility to the communities we serve.”

AFD group CEO Rêmy Rioux adds that, together, the entities will advance more innovative financing mechanisms and knowledge partnerships that address the challenges of sustainable development finance at a time when global issues require country-led solutions.

“Through this MoU, we are deepening our synergies in support of impact finance in South Africa and across the region, to seize new financing opportunities in sectors such as renewable energy, social housing and infrastructure,” comments Proparco CEO Françoise Lombard.