Afreximbank, DBSA fund $20 million project prep facility

The African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa (DBSA) have signed a Joint Project Preparation Facility Framework Agreement to develop a pipeline of bankable infrastructure and industrial projects across South Africa and the wider Southern African region.

Under the agreement, each institution can contribute up to $10 million to the facility, providing as much as $20 million to support the preparation of trade-enabling infrastructure and industrial projects. The facility will focus on moving projects from concept stage towards investment readiness by financing and supporting technical, financial and legal preparation work. Priority sectors include power and energy, particularly energy transition projects, transport and logistics, information and communication technology and strategic minerals beneficiation. Other sectors may also be considered where they align with national and regional development priorities.

Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, said: “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.” She added: “By combining Afreximbank’s trade and industrialisation mandate with 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.”

The framework will initially focus on South Africa and the wider Southern African region, with scope to support projects elsewhere in Africa where the two institutions have a mutual interest. The agreement is one of the first operational initiatives following South Africa’s accession to the Afreximbank Establishment Agreement in February 2026, when the country became the bank’s 54th member state.

Gregory Fyfe, Chief Investment Officer at DBSA, said the facility would seek to strengthen the pipeline of investable infrastructure and industrial projects. “This will unlock investment opportunities and accelerate the delivery of infrastructure that supports economic growth, industrialisation and regional integration,” Fyfe said.

Projects prepared through the facility may subsequently seek financing from Afreximbank and DBSA, although any investment will remain subject to separate appraisal and approval. Projects may also be presented to private investors, other development finance institutions and commercial lenders, creating a potential route for additional public, private and blended capital. The two institutions will collaborate on project origination, preparation, knowledge sharing and portfolio monitoring, with the facility also intended to support regional integration and trade under the African Continental Free Trade Area.