THE DBSA REACHES US$ 8 MILLION (APPROXIMATELY R61 million) AGREEMENTS WITH THE INDUSTRIAL CREDIT COMPANY (ZAMBIA) AND THE LUNSEMFWA HYDRO POWER COMPANY

Lusaka, Zambia - November 17, 2003

The Development Bank of Southern Africa (DBSA) has signed a line of credit and Bond subscription agreements totaling US$8 million with two Zambian organizations (the Zambian Industrial Credit Company, line of credit for US$5 million and the Lunsemfwa Hydro Power Company Ltd (“LHPC”) Bond issue through Cavmont Securities Limited for which DBSA is subscribing US$3 million)

The line of credit extended to ICC is in support of deepening the capital market through providing long term tenor money to businesses seeking to make term capital investments either to start up or expansion. This facility is in syndication to a further facility of US$5 million being provided to ICC by NOSARD. It represents a new partnership being forged between the two institutions in funding projects within the region.

Through the new Corporate Bond issue arranged and placed by Cavmont Securities Limited to raise US$7 million for LHPC to raise funding to complete the privitasation of the hydro power stations (Mulungushi and Lunsemfwa) which were acquired from the Zambia Consolidated Copper Mines ( ZCCM), as well as financing refurbishment of the power stations, the DBSA is seeking to further play a role in helping the capital market in Zambia to develop alternative long term debt instruments for companies to use to fund new or expansion of projects.

The ICC's principal business is to provide finance through offering financial and operating leases as well as by–products such as insurance premium and structured property finance. It also offers factoring facilities.

LHPC on the other hand, is an independent power producer supplying electricity on a bulk basis to the national grid through ZESCO.

The DBSA aims to contribute to the development of the region by providing finance and expertise to improve the quality of lives of the people of Southern Africa, mainly through the provision of infrastructure which includes capital market developments to support sustained economic growth.

Issued Jointly by: DBSA, ICC and NORSAD

Contact: Mr. Jabu Mthembu

Tel: 011-313-3747