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EIB's Hodges urges closer ties to turn funding into projects

Published

Jim Hodges, head of the European Investment Bank (EIB) for Southern Africa, said South Africa lacks neither ambition nor capital. He told the Drakensberg Inclusive Growth Forum on Saturday that the country needs stronger links between financing and viable projects.

The Kgalema Motlanthe Foundation organised the forum. Hodges said development finance institutions could help remove barriers that stop private investors from funding projects. He also said financing must come with technical support and links to buyers if small businesses are to become viable.

Hodges said better risk information could help investors judge risks more accurately. He said this could encourage banks, pension funds and insurers to commit capital. He cited a risk database that shows an average default rate of about 3.5% for private-sector lending in Africa over 30 years. He said recoveries were about 73%.

Hodges said the EIB began working in South Africa in 1994. Its first transaction in the country came in 1995, with the Industrial Development Corporation. He also pointed to the Kulima initiative in Malawi.

Hodges questioned the development finance model: "The question really should be, are we fit to make it relevant for today?"

Key facts

Who
Jim Hodges (Head of the European Investment Bank for Southern Africa and the Indian Ocean…); Kgalema Motlanthe Foundation (Hosted the Drakensberg Inclusive Growth Forum); European Investment Bank (Development finance institution; Hodges' employer)
What
Speaking at the Kgalema Motlanthe Foundation's Drakensberg Inclusive Growth Forum, Hodges said South Africa lacked no ambition or capital but needed stronger links between financing and viable projects. He cited EIB work in SA since 1994, a default-rate statistic for African private-sector lending, and the Kulima agricultural initiative in Malawi.
When
31 October 2026
Where
South Africa, Africa, Europe
Status
Reported

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