The Development Bank of Southern Africa (DBSA) has reaffirmed its commitment to supporting South Africa’s digital infrastructure sector, with investments made to local businesses contributing to the deployment of 47 545km of fibre during the year ended 31 March 2026.
This is according to the government-owned finance institution’s latest annual financial results, released yesterday.
The fibre deployment was recorded among the development outcomes achieved through DBSA’s fund-management activities, as the development finance institution increased its overall infrastructure funding and reported a 47% jump in net profit to R7.8 billion.
The DBSA's broader infrastructure activities generated R62.4 billion in development support during the year. The bank reported R20.7 billion in loan and equity disbursements, while R14.7 billion in funding was catalysed.
A further R17 billion was allocated to prepared projects approved and programmes enabled, across various sectors.
The results show continued investment in connectivity infrastructure alongside a broader development mandate covering skills, entrepreneurship, municipalities and infrastructure projects across Southern Africa, it says.
The DBSA's financing business provides direct financing to private-sector companies, fund managers, municipalities, state-owned entities, sovereigns and public-private partnerships.
It describes digitalisation as a central component of its broader development mandate.
“The DBSA sees digitalisation as a core driver to advance inclusive economic growth and operational excellence.
“ICT is an enabler of decentralised work efforts and closes the time and distance gap that separates countries. This allows emerging economies to participate in global markets remotely.
“However, most of these emerging nations, particularly those within Africa, lack the infrastructure necessary to sufficiently engage in global value chains. The World Bank estimates that Africa will require $100 billion to achieve universal broadband connectivity by 2030.”
In its results booklet, the DBSA says it continuously seeks opportunities across the ICT value chain.
The institution finances and prepares a range of projects, including international connectivity, backbone and network infrastructure, towers, fibre, undersea cables, data centres, satellites and fintech solutions.
The DBSA says long-term investment is required not only to build networks, but also to ensure they can be operated and maintained.
“Investments are crucial in encouraging ICT infrastructure development, rollout, operations and maintenance to allow digital accessibility and connectivity for Africans. Furthermore, investments are required for policy development and the development of future skills.
“As a development finance institution, our purpose is to ensure sustained and integrated growth in ICT assets to maximise development impact and improve connectivity in Africa. We follow an integrated approach to ICT infrastructure development, prioritising five key project lifecycles: planning, preparation, financing, building and maintaining.”
Successfully completed ICT infrastructure projects, include:
Dark Fibre Africa – an open-access fibre optic provider − received debt financing.
Teraco Data Environments – a data operations centre − received, in collaboration with the International Finance Corporation, senior debt financing.
BitPesa – a foreign exchange and digital payment platform − received debt financing.
“The DBSA has a resilient balance sheet and continues to play a significant role in infrastructure development through lending and non-lending activities. The bank’s continued success hinges on its ability to increase developmental impact as it seizes the infrastructure moment by using its own balance sheet and partnering with others.”
Skills development, youth employment
The DBSA’s technology-related development initiatives include its DLABS programme, which focuses on future skills, youth employment and entrepreneurship.
It combines skills development with employment and entrepreneurship opportunities.
During the year, DLABS trained 1 046 young people in future skills and supported 165 start-up enterprises, notes its financial statement. In 2024/25, the programme trained 1 643 young people and supported 544 start-ups.
The decline contrasts with the increase in the DBSA’s overall loan and equity disbursements, and highlights that stronger financial performance did not result in higher reported outputs across all of its technology and entrepreneurship initiatives.
The DBSA describes the DLABS model as a form of social development infrastructure intended to address skills and access gaps within communities.
“The DLABS are a social development infrastructure initiative aimed at providing access to previously inaccessible skills, education and services. The DLABS Precinct model is an unprecedented South African approach to addressing socio-economic needs, in a manner that is inclusive, builds resilience, fosters social cohesion, drives community-based solutions and stimulates economic development.”
In terms of financial performance, the DBSA’s net profit increased 47% to R7.8 billion for the year, compared with R5.3 billion in 2025. Operating income rose 21.7% to R10.6 billion, while net interest income increased 5.6% to R8.9 billion.
“The DBSA attributes the increase in net profit to higher net interest and operating income, growth in its asset base and a 38% reduction in impairment provisions. The stronger financial performance came against a challenging operating environment, amid weak economic growth, geopolitical tensions, higher costs of doing business, supply-chain disruption and financial pressures affecting municipalities,” says the institution.
While the DBSA is wholly-owned by the South African government, it is not funded solely through government allocations.
The institution raises debt funding from a diversified pool that includes debt capital markets, commercial banks, international development finance institutions, the bond market, money markets and private placements.
Share
