The African Export-Import Bank (Afreximbank) and the Uganda Development Bank (UDB) have signed an agreement to support both public and private sector entities in the East African country. The Joint Project Preparation Facility (JPPF) Framework agreement will focus on key sectors including energy, transport and logistics, special economic zones, manufacturing, agro-processing, hospitality and tourism, mining, and services.
The new facility aims to address the common challenge of de-risking projects and advancing them from the initiation of the concept to the point that it can be bankable. It will cover costs related to feasibility studies, project development, advisory services, and more. Through this collaboration, Afreximbank and UDB are targeting the mobilization of up to $25 million to support project preparation in Uganda.
Mrs. Kanayo Awani, Executive Vice President of Afreximbank, underlined, the significance of the agreement: “The JPPF represents a crucial tool for preparing bankable projects. One of the major hurdles in project development is moving commercially viable ideas to financial closure. This partnership will allow us to pool resources and work with UDB to prepare high-quality, investment-ready projects that will attract both public and private sector funding.”
Echoing these sentiments, Mr. Samuel Edem Maitum, Director of Credit at UDB, touched on the initiative’s potential impact. “Many transformative project ideas in Uganda remain unimplemented due to limited technical and financial support. Our collaboration with Afreximbank through the JPPF will unlock numerous projects, enabling the flow of capital into these ventures,” Maitum stated. He also expressed gratitude for the opportunity and affirmed UDB’s commitment to ensuring the initiative’s success.
The implementation of this agreement is expected to catalyze economic growth in Uganda by increasing private sector investments in targeted sectors.
