Multilateral trade finance institution the African Export-Import Bank (Afreximbank) and development finance institution (DFI) the Development Bank of Southern Africa (DBSA) will each contribute $10-million to prepare high-impact, trade-enabling infrastructure and industrial projects in South Africa and the wider region.

Afreximbank and DBSA will collaborate to advance high-impact projects from concept stage to bankability.

Through the Joint Project Preparation Facility (JPPF) Framework Agreement, the institutions will jointly originate, screen and prioritise projects, and support the technical, financial and legal work required to address bankability constraints.

Priority sectors include power and energy, with particular attention to the energy transition; transport and logistics; information and communication technology; strategic minerals beneficiation; and other mutually agreed sectors aligned with national, regional and continental development priorities.

The framework will focus initially on South Africa and the wider Southern African region, with scope to consider other African jurisdictions of mutual interest, the financial institutions say.

“Africa’s infrastructure challenge is not only about shortage of capital; it is also about shortage of projects prepared to the standard required by investors and lenders. This JPPF addresses this critical constraint,” says Afreximbank Intra-African Trade and Export Development executive VP Kanayo Awani.

“By combining Afreximbank’s trade and industrialisation mandate with the DBSA’s infrastructure-development expertise, we will help move priority projects from concept to investment readiness and mobilise the larger pools of public, private and blended finance required for implementation.

“For South Africa and the wider Southern Africa region, this is how project preparation becomes a practical instrument for industrialisation, export growth and regional integration under the AfCFTA,” she says.

Projects developed through the JPPF may seek downstream funding from Afreximbank and the DBSA. They may also be presented to private investors, DFIs and commercial lenders, subject in every case to separate appraisal and approval.

Both institutions will actively collaborate on origination, preparation, knowledge-sharing and portfolio monitoring to accelerate project bankability and execution.

“The JPPF represents a significant step towards strengthening the pipeline of bankable infrastructure and industrial projects across South Africa and the Southern African region. Through this partnership with Afreximbank, we are leveraging our complementary strengths to improve project preparation,” says DBSA chief investment officer Gregory Fyfe.

“This will unlock investment opportunities and accelerate the delivery of infrastructure that supports economic growth, industrialisation and regional integration. This initiative reflects DBSA's commitment to infrastructure-led development and to enabling sustainable, long-term impact through well-prepared projects that attract both public and private sector investment.”

The agreement is one of the first operational instruments to follow South Africa’s accession to the Afreximbank Establishment Agreement in February. South Africa became Afreximbank’s fifty-forth member State in February, which is when it announced an $8-billion programme for the country.

The agreement also complements the Master Risk Participation Agreement signed by Afreximbank and the DBSA in February, extending the partnership upstream into project preparation.