South Africa’s Development Bank of Southern Africa (DBSA) reduces its municipal lending for a second consecutive year, citing increased risk in its existing exposure, including a loan book worth about R16bn that is becoming more problematic.
The bank says the move does not mean it is abandoning local government. Instead, it describes the change as a shift in how it supports municipalities amid concerns about repayment capacity and rising risk across the sector. The reports frame the decision as part of ongoing portfolio management rather than a withdrawal from municipal finance.
Across outlets, the shared focus is that DBSA is lowering lending volumes while continuing to operate in the municipal sphere. Differences are mainly in emphasis: one outlet highlights that the reduction is happening year-on-year, while the other focuses on the bank’s insistence that it remains engaged with local government even as it tightens support.
