PMFORUM Breaking News

Reported by Jaycee Krüger in South Africa

The Board of Directors of the African Development Bank (AfDB) in Tunis have approved two lines of credit totaling US$ 320 million to Standard Bank of South Africa (SBSA) and Nedbank, both based in South Africa to provide long-term funding for infrastructure, industry and natural resource projects in Africa, outside South Africa.

According to the AfDB news release, the loans will provide both banks with long-term funding. Whilst the international "sub-prime" credit crisis has not directly impacted financial market liquidity in South Africa, it has increased the cost of long-term funding. The funding received will further diversify and enhance the capital base of both banks.

According to Mandla Sizwe V. Gantsho, AfDB Vice President for Infrastructure, Private Sector and Regional Integration, "the approval of these loans is very timely, given the current difficulties in the financial markets arising from the sub-prime lending crisis. Africa's infrastructure development cannot be put on hold by such difficulties. The AfDB is playing a rightful and strategic role, by being instrumental in supporting strong South African financial institutions to make sure that they can continue playing their infrastructure financing role across Africa and contributing to the achievement of development outcomes for the whole Continent."

Mr. Gantsho is the former CEO of the Development Bank of South Africa (DBSA), and moved to ADB two and a half years ago serving not only South Africa and the SADC Region, as he did when he was at DBSA, but the entire African Continent.

Under the approvals, SBSA, one of Africa's largest banks with a strong continental presence, will receive up to US$ 220 million line of credit to help feed its project finance operations on the continent. Nedbank will receive US$ 100 million to fund its project finance portfolio in Africa. The bank is considered to be among the most creditworthy institutions on the continent with an investment-grade credit rating.

Mark Weston, Managing Director and Joint Head of Investment Banking at Nedbank Capital said, "Nedbank are pleased to once again be working with AfDB and securing a meaningful US Dollar Line of Credit to support Nedbank's project financing activities into the continent. This aligns with our strategy of selectively expanding our activities into Africa outside of South Africa."

Jaycee Krüger International Correspondent South Africa Jaycee Krüger, PMP, PrTechEng, is an International Correspondent for PMForum in South Africa. He is also the Managing Director of Mhlegahlatini (Pty) Ltd, trading as Greybeards Inc. He has spent over 29 years working in project environments with increasing responsibility, from technical design and construction supervision through construction management and project management to executive head of various functional departments and director of a major South African project management and engineering company operating globally. Project experience includes power generation, industrial and mining projects, from shutdowns through brown-fields to green-fields in extremely remote places. He has delivered various voluntary papers and lectures on project management topics. Serving his two professions, civil engineering and project management, Jaycee was founding member of various organisations and branches of organisations, as well as subject matter expert in statutory boards governing project management. He is presently active in the Project Management Institute (PMI®) where he serves on the Component services Members Advisory Group (CSMAG), the Association for the Advancement of Cost Engineering International, (AACE), Project Management South Africa (PMSA) where he is currently Vice President International Liaison and South African Institute of Civil Engineering (SAICE). Jaycee is based in Heidelberg, Gauteng Province, South Africa and can be reached at jckruger@greybeards.co.za. Visit his web site at http://www.greybeards.co.za