Development Bank of Southern Africa Appointed to Support the Delivery of the Credit Guarantee Vehicle That Will Unlock Private Capital for Infrastructure

The Development Bank of Southern Africa (DBSA) has been mandated by National Treasury to host a ring-fenced Project Implementation Unit to support the establishment of South Africa's Credit Guarantee Vehicle (CGV).

The CGV is a new credit enhancement mechanism designed to unlock private investment in strategic infrastructure projects. Structured with an initial target capitalisation of approximately USD 500 million, the vehicle will, once operational, provide credit guarantees to enhance the bankability of qualifying infrastructure projects.

Formalised through a Memorandum of Agreement signed in January 2026, the dedicated Project Implementation Unit ring-fenced within DBSA will support the development partners, including the world bank group with the vehicle’s incorporation, licensing and capitalisation.

"This appointment by the National Treasury reinforces the DBSA's position as the leading infrastructure enabler in South Africa. The Bank is capacitated to catalyse infrastructure investment by providing the coordination and technical expertise that complex financing mechanisms such as this one require,” said Boitumelo Mosako, Chief Executive Officer of the DBSA.

National Treasury selected DBSA based on the Bank’s demonstrated capabilities, including:

• The DBSA’s deep project preparation expertise; dedicated resources and technical capacity to structure complex infrastructure programmes.
• A strong track record with development partners; proven experience managing funds and compliance for international development finance institutions and multilateral partners.
• Programme delivery infrastructure; established capability in operating national Programme Management Offices, such as the Independent Power Producer Procurement Office (IPPO), Water Programmes Office (WPO) and the Infrastructure Fund (IF).

The CGV is intended to complement government's limited fiscal capacity to provide sovereign guarantees for infrastructure. This credit enhancement will make projects in transmission, transport, water and social infrastructure more viable for long-term private sector participation.

The CGV will fundamentally change how public infrastructure gets financed in South Africa by shifting risk away from government, while unlocking new sources of funding for critical infrastructure. The mechanism is designed to be sustainable and scalable, starting with transmission infrastructure and expanding to other sectors as the model proves successful.

The DBSA-hosted Project Implementation Unit will coordinate across National Treasury, the World Bank Group, prospective capital providers and regulatory authorities to deliver each phase.