Afreximbank and Development Bank of Southern Africa Establish a Joint Project Preparation Facility to Advance Bankable Projects in Southern Africa

Project preparation is the stage at which most African railway proposals fail, and it is rarely the stage that attracts funding. A facility whose money goes specifically into taking projects from concept to investment readiness, with transport and logistics named among its priority sectors, addresses the part of the pipeline a railway reader watches most closely.

What the next step will test is whether any transport project is actually taken up. Up to US$10 million from each institution is preparation money rather than construction money, and the release is explicit that downstream funding remains subject to separate appraisal in every case, so the measure of the facility will be the first rail or logistics scheme it carries through to a financeable proposition.

• Afreximbank and the Development Bank of Southern Africa have signed a Joint Project Preparation Facility Framework Agreement covering South Africa and the wider Southern African region.
• Each institution will be able to contribute up to US$10 million to prepare trade-enabling infrastructure and industrial projects.
• Priority sectors are power and energy with particular attention to energy transition, transport and logistics, information and communication technology, strategic minerals beneficiation, and other mutually agreed sectors.
• The institutions will jointly originate, screen and prioritise projects and support the technical, financial and legal work required to address bankability constraints.
• The agreement follows South Africa's accession to the Afreximbank Establishment Agreement in February 2026, when it became the bank's 54th member state and a US$8 billion Country Programme was announced.
• It complements the Master Risk Participation Agreement signed by Afreximbank and DBSA in February 2026.
• Projects developed through the facility may seek downstream funding from either institution, or be presented to private investors, development finance institutions and commercial lenders, subject in every case to separate appraisal and approval.

Through the JPPF, the institutions will jointly originate, screen and prioritise projects and support the technical, financial and legal work required to address bankability constraints.

African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa (DBSA) have signed a Joint Project Preparation Facility (JPPF) Framework Agreement. Under the agreement, each institution will be able to contribute up to US$10 million to prepare high-impact, trade-enabling infrastructure and industrial projects in South Africa and the wider region.

The agreement is 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 2026, when the Bank also announced a US$8 billion Country Programme for the country. The agreement complements the Master Risk Participation Agreement signed by Afreximbank and DBSA in February 2026, extending the partnership upstream into project preparation. It also supports the objectives of South Africa's National Development Plan 2030, SADC integration and implementation of the African Continental Free Trade Area (AfCFTA).

Mrs Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, signed on behalf of Afreximbank, while Mr Greg Fyfe, Chief Investment Officer, DBSA, signed on behalf of his institution.

Through the JPPF, 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 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.

Through the JPPF, Afreximbank and DBSA will collaborate to advance high-impact projects from concept stage to bankability. The focus will be on trade-enabling infrastructure, industrial development and export-oriented initiatives across South Africa and the Southern African region, with potential extension to other African jurisdictions of mutual strategic interest.

Commenting on the agreement, Mrs 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. 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.”

Gregory Fyfe, Chief Investment Officer at DBSA, said: “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.”

Projects developed through the JPPF may seek downstream funding from Afreximbank and DBSA. They may also be presented to private investors, development finance institutions 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.