The African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa (DBSA) have signed a framework agreement that allows each institution to contribute up to $10 million toward preparing infrastructure and industrial projects in South Africa and the wider Southern African region.
The Joint Project Preparation Facility (JPPF) will finance technical, financial and legal work needed to address bankability constraints, with a focus on projects capable of supporting trade, industrialisation and export growth.
The agreement extends cooperation between the two development finance institutions into project preparation, building on a Master Risk Participation Agreement signed in February 2026.
Infrastructure preparation and investment
Under the facility, Afreximbank and DBSA will jointly originate, screen and prioritise projects, supporting their development from concept stage to investment readiness.
Priority sectors include power and energy, particularly energy transition, transport and logistics, information and communication technology, and strategic minerals beneficiation.
The initial geographic focus is South Africa and the wider Southern African region, although the framework allows consideration of other African jurisdictions of mutual interest.
Projects developed through the facility may subsequently seek financing from Afreximbank, DBSA, private investors, development finance institutions and commercial lenders. Each funding decision will remain subject to separate appraisal and approval.
Afreximbank deepens South Africa partnership
The agreement is among the first operational instruments to follow South Africa’s accession to the Afreximbank Establishment Agreement in February 2026, when the country became the bank’s 54th member state.
Afreximbank also announced an $8 billion Country Programme for South Africa in February 2026. The JPPF complements the bank’s existing partnership with DBSA and supports the objectives of South Africa’s National Development Plan 2030, SADC integration and implementation of the African Continental Free Trade Area (AfCFTA).
Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, said the facility addresses a shortage of projects prepared to the standards required by investors and lenders.
“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. 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. 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,” Awani said.
DBSA targets bankable infrastructure pipeline
Gregory Fyfe, Chief Investment Officer at DBSA, said the partnership would strengthen the pipeline of bankable infrastructure and industrial projects across South Africa and the region.
“The Joint Project Preparation Facility 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. 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,” Fyfe said.
The institutions will also collaborate on project origination, preparation, knowledge-sharing and portfolio monitoring to support project bankability and execution.
The framework creates a mechanism for developing infrastructure and industrial projects aligned with national, regional and continental development priorities, while providing potential pathways to downstream financing.
