The Development Bank of Southern Africa (DBSA) and the International Fund for Agricultural Development (IFAD) have solidified a landmark partnership by signing a Memorandum of Understanding (MoU).
The agreement, formalized during the Finance in Common Summit (FiCS) 2025 in Cape Town, establishes a collaborative framework to advance rural economic development across Africa and its member states.
The MoU paves the way for a co-financing partnership between DBSA, a leading public development bank, and IFAD, a United Nations agency and international financial institution with nearly five decades of expertise in poverty alleviation and rural development.
Together, the institutions aim to leverage their combined resources and expertise to deliver impactful, people-centered projects that address poverty, climate resilience, and economic growth in rural communities.
Strengthening Infrastructure and Partnerships
“Infrastructure is at the heart of what we do at DBSA, and our impact is strengthened through the power of partnerships,” said Boitumelo Mosako, CEO of DBSA. “By working together with like-minded stakeholders, we unlock innovative solutions, drive sustainable development, and create lasting change in communities. It is through collaboration that we harness our collective strength to build a more resilient and prosperous future for all.”
IFAD President Alvaro Lario echoed this sentiment, emphasizing the strategic importance of the alliance. “We are excited to be working with a leading Public Development Bank such as DBSA. The partnership offers an important opportunity to jointly leverage additional resources and expertise for our projects, enhancing their impact on rural development, poverty reduction, climate resilience, and economic growth across Africa.”
A Shared Vision for Rural Transformation
Under the agreement, DBSA and IFAD will collaborate on six key areas:
- Integrated Sustainable Development: Enhancing the well-being of rural communities through holistic approaches.
- Environmental Conservation and Resilience: Promoting innovative practices and financing instruments to address climate challenges.
- Empowerment of Rural Communities: Strengthening value chains and social infrastructure to foster dynamic local economies.
- Knowledge Sharing and Capacity Building: Facilitating the exchange of expertise and skills to empower stakeholders.
- Regional Collaboration and Financing: Mobilizing resources to transform rural areas across the continent.
- Governance and Policy Support: Strengthening institutional frameworks to enable sustainable development.
The partnership will also establish a co-financing pipeline to bolster IFAD projects with additional financial and technical support, ensuring improved project design, implementation, and outcomes.
A Step Toward a Resilient Future
This collaboration marks a significant step in addressing the pressing challenges faced by rural communities in Africa. By combining their strengths, DBSA and IFAD aim to drive transformative change, fostering economic growth, environmental sustainability, and social equity across the continent.
As the partnership unfolds, both institutions are committed to delivering measurable results that will leave a lasting impact on the lives of millions, setting a new standard for development cooperation in Africa.
