MUSINA - The Development Bank of Southern Africa and Musina Municipality signed a loan agreement of R7,5 million at the Musina Civic Centre on Tuesday. The main aim of the loan is to stimulate economic activity in Limpopo.

According to the Regional Manager of the DBSA, Ms Pumla Mannya, her company wants to stimulate economic activity, with the intention of "pushing back the frontiers of poverty as a response to the call by Pres Thabo Mbeki last year." Mannya indicated that the DBSA is showing commitment to a better standard of living for the people of Musina through improved service delivery and the creation of employment.

According to the agreement signed by the two parties, the money will be paid out over a term of seven years. Mannya further said that the DBSA assisted the former Messina TLC in 1994 with R1,4 million for the financing of labour for road construction in Nancefield. Last year, the DBSA and Du Roi Invest, a private farming initiative in Limpopo, signed a R16,5 million partnership agreement at Xiklakati Village that will ensure that farmers in the drought-stricken province access resources for sustained productivity.

The DBSA contributes to development by providing finance and expertise for improving the quality of life of the people of Southern Africa, she said.

The Mayor of the Musina Municipality, Mr David Phologa, said they are going to upgrade the electrical substation at Musina, and for the construction of toilets at Madimbo.