The African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa (DBSA) have signed a framework agreement to establish a joint $20 million facility aimed at preparing infrastructure and industrial projects in South Africa and the region.
Under the Joint Project Preparation Facility (JPPF) – which, according to the signed agreement, is set to be endowed with $20 million – Afreximbank and the DBSA will each contribute up to $10 million to fund the studies and work required to bring high-impact projects to maturity.
The goal is to transform projects currently in the conceptual stage into operations that are sufficiently structured to attract public and private financing.
Afreximbank and the DBSA will jointly identify, evaluate, and prioritise projects. The facility will specifically fund the technical, financial, and legal studies needed to overcome obstacles to their bankability.
Targeted sectors include power and energy – with a focus on the energy transition – transport and logistics, information and communication technology, and the processing of strategic minerals.
Cooperation will initially focus on South Africa and Southern Africa, with the potential to expand to other African countries of mutual interest.
This agreement is one of the first operational instruments following South Africa’s accession to the Afreximbank Establishment Agreement in February 2026.
The country became the 54th member state of the pan-African institution, which had simultaneously announced an $8 billion program for the country.
The JPPF also complements the risk-participation framework agreement concluded between Afreximbank and the DBSA last February, extending their collaboration to the project preparation phase.
“The infrastructure challenge in Africa is not solely due to a shortage of capital; it also lies in the lack of projects prepared to the standards required by investors and lenders,” noted Kanayo Awani,
Executive Vice President of Intra-African Trade and Export Development at Afreximbank.
Gregory Fyfe, Head of Investments at the DBSA, stated that this partnership would strengthen the pipeline of bankable projects and accelerate the delivery of infrastructure that fosters economic growth, industrialisation, and regional integration.
Projects prepared through the facility may – subject to separate assessments and approvals – secure subsequent financing from Afreximbank and the DBSA. They may also be presented to private investors, development finance institutions, and commercial lenders.
The initiative aligns with the objectives of South Africa’s National Development Plan 2030, regional integration within the Southern African Development Community (SADC), and the implementation of the African Continental Free Trade Area (AfCFTA).
TE/Sf/fss/as/APA