US$ 20.2M approved by SADC for Twelve Southern African regional projects

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Twelve Southern African regional projects are set to benefit from US$ 20.2M approved by the Southern African Development Community (SADC). The projects werefunding, which will cater for the preparation of the projects was approved through the Project Preparation and Development Facility (PPDF). The latter is a tool used by the SADC to fund regional development.

According to the regional bloc, the projects involve the energy, transport, and water sectors. They are expected to generate infrastructure investments of at least US$3 billion. Moreover, they have a huge potential to unlock business opportunities throughout the infrastructure value chain.

These opportunities include consultation services, finance, construction, and equipment supply. In addition, they involve technology and skills, and also operations and maintenance.

What are the twelve regional projects?

The twelve regional projects include the second Alaska–Sherwood powerline in Zimbabwe, and the Angola–Namibia transmission interconnector. The Kasemeno–Mwenda toll road, the Luapula hydropower development, and the Mulembo Leyla Hydro in Zambia are part of the twelve. Additionally, there is the North-South Rail Corridor between Botswana, the DRC, South Africa, Zambia, and Zimbabwe.

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Futhermore, there is the Lomahasha Namaacha Cross (Eswatini and Mozambique), and the Kazungula Water Supply and Sanitation Project (Zambia). Not to mention the Lomahasha Namaacha Station and Wastewater Treatment Plant in Mauritius. Lastly the twelve projects involve the MOZISA power interconnector project between Mozambique, South Africa, and Zimbabwe.  

A strong transmission network is needed to support the region’s planned expansion in power production facilities and supply the additional load. Thererfore, SAPP transmission system’s bottlenecks are expected to be removed by the PPDF-approved transmission projects. 

The projects are also expected to increase power-wheeling capacity and boost trade between SADC member states. The transmission lines would also promote the growth and ease the integration of new generation projects.

Funding for the projects

The projects, including the Africa Green Co. projects, are funded by the European Union (EU) as well as KfW Bank of Germany.

In order to support the efforts of the SADC PPDF, SAPP has also been in talks with a number of organizations and development banks. It secured joint funding for several projects and activities. These include capacity building, technical assistance, and project preparation funding.

Moreover, the PPDF looks to support SADC address the undertaking of the SADC Regional Infrastructure Development Master Plan. The latter will promote and take part in improving regional economic integration.

Furthermore, by doing away with hurdles to infrastructure development, PPDF funding aims to improve viable economic growth and provide basic services that affect the development of the SADC Region.

The SADC council chose the Development Bank of Southern Africa (DBSA) to work as the PPDF’s implementation agent and finance manager.