By George Ozalla
The African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa (DBSA) have established a US$20 million Joint Project Preparation Facility (JPPF) to support the development of major infrastructure and industrial projects in South Africa and the wider Southern African region.
The two financial institutions signed the Joint Project Preparation Facility Framework Agreement in Cairo, Egypt, on Friday, with each institution committing to contribute up to US$10 million to the facility.
The arrangement is intended to provide funding for the preparation of high-impact, trade-enabling infrastructure and industrial projects, helping to move viable projects from the planning stage towards bankability and eventual financing.
Project preparation is a critical stage in the development of large infrastructure and industrial investments because it involves the technical, financial and other preparatory work required to establish whether a proposed project is viable and ready to attract investment.
Through the new facility, Afreximbank and DBSA will be able to support the preparation of projects capable of contributing to trade, industrial development and economic activity in South Africa and other parts of Southern Africa.
The agreement is also one of the first operational instruments to follow South Africa’s accession to the Afreximbank Establishment Agreement in February 2026.
South Africa became Afreximbank’s 54th member state in February, strengthening the Bank’s institutional relationship with the country and providing a framework for expanded financing and project development cooperation.
Following South Africa’s accession, Afreximbank announced an US$8 billion Country Programme for the country, covering financing support aimed at promoting trade and economic development.
The Joint Project Preparation Facility therefore provides another mechanism through which Afreximbank and a major Southern African development finance institution can work together to develop projects with regional and trade implications.
For DBSA, the partnership brings additional capacity to the preparation of infrastructure and industrial projects, while Afreximbank’s participation provides a continental trade finance perspective to projects being developed in the region.
The facility will focus on projects with the potential to generate significant economic and trade benefits, with the preparation stage expected to help address some of the technical and financial requirements that can determine whether major projects progress from concept to investment.
The partnership also reflects the growing cooperation between African development finance institutions in mobilising resources for infrastructure and industrial development, particularly projects that can improve economic connections and support trade within the continent.
