Infrastructure Investment Programme for South Africa (IIPSA)

Title Infrastructure Investment Programme for South Africa (IIPSA)
E-mail, phone number and mailing address

c/o Development Bank of Southern Africa,
Headway Hill,
1258 Lever Road,
South Africa

Facility URL
Facility Objectives

The purpose of the IIPSA funding is to enhance sustainable economic growth and the delivery of key services affecting development in South Africa and in the Southern African Development Community (SADC) Region.  Using financial leverage as a key principle, IIPSA aims to address the constraints to infrastructure development in South Africa and in the SADC region. 

Key activities
IIPSA provides innovative financing, involving the blending of EU grants together with loans from participating Development Finance Institutions - Agence Française de Développement (AFD), DBSA, European Investment Bank (EIB) and German Development Bank (KfW).  IIPSA will support the development of both national and regional infrastructure projects as spelled out in South Africa's national infrastructure programme, and in SADC's regional infrastructure programme.
Type of finance provided
  • Direct grants (up to 100%) - Direct grants to jointly co-finance capital expenditure of an infrastructure project with a loan from one or more participating DFI.  This will be limited to socio-economic infrastructure projects such as non-toll roads, water and sanitation projects, among others, but excludes projects that are commercially viable on their own.
  • Interest rate subsidies - The provision of a lump-sum amount may be used to reduce the interest rate of the long term loan provided by one or more participating DFIs.  Such subsidies shall only be supported in duly justified cases and only when it has been ascertained that they do not create any market distortions.
  • Loan guarantee cost financing and insurance premiums 
Size of project supported

The IIPSA will in principle consider projects or programmes with a minimum capital investment value of R500 million or equivalent in USD/Euro in South Africa and the SADC region respectively.  If duly justified, projects with a smaller investment value will also be considered, notably if packaging of several projects as a programme is feasible.

Range of funding provided (min/max)

This will be decided on a project by project basis, depending on available funding.

Beneficiaries supported

The project owner/sponsor will be either an eligible public or a private institution with a public service mission.

Project type

In South Africa - a national or sub-national project.
In SADC region - a regional project, being a trans-border project involving two or more countries in the SADC region, or a national project with a demonstrable regional impact on one or more other country in the SADC region.

Project preparation phases supported

Technical Assistance and studies / project preparation - the financing of technical assistance to support project preparation, and the management and implementation of eligible infrastructure projects (including around: enabling environment; project definition; project feasibility; project structuring; transaction support; post-implementation support)

Application process
  • All interested applicants should complete the online application form at ( and provide the required documentation and all relevant forms as requested; 
  • Only project applications submitted through the online application form will be accepted by the DBSA, the implementing agent for IIPSA;
  • An application guideline is available on the web site.
Eligibility exclusions
Each application will undergo an initial screening to assess suitability in terms of the IIPSA objectives. All applications will be subjected to the following criteria which they must meet:
a) Sector or Strategic Fit (the project is within the priority sectors considered by the IIPSA);
b) Development Impact (the project improves the quality of life of  citizens);
c) National / Regional Priority (the highest decision-making authority is in support of the project and the project should be on the National Development Plan in South Africa, or the Regional Infrastructure Development Master Plan in SADC);
d) Institutional Capacity (the project should currently have capacity or should have credible plans to add capacity towards management and project implementation);
e) Project Size (usually projects with a minimum capital investment value of R500 million, or equivalent in USD/Euro, though projects with a smaller investment value may also be considered).
Countries Angola, Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Zambia, Zimbabwe

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