Afreximbank and DBSA Mobilise $20 Million to Prepare Infrastructure Projects in Southern Africa

African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa (DBSA) have agreed to establish a $20 million Joint Project Preparation Facility (JPPF). The facility will finance the technical, financial and legal preparation of infrastructure and industrial projects before they reach the investment stage.

$20 million facility targets project preparation

Under the agreement, Afreximbank and DBSA can each provide up to $10 million to the facility. The funding will cover activities required to move projects from the concept stage to a position where they can attract long-term financing.

Eligible preparation work can include technical feasibility studies, financial assessments, legal work, risk analysis and other advisory services required to structure bankable projects.

The two institutions will jointly identify, assess and select projects for support. The mechanism is intended to address one of the constraints affecting infrastructure development in Africa: projects can remain at the planning stage when feasibility studies and financial structures are not sufficiently developed for lenders and investors.

Transport and logistics among the priority sectors

Transport and logistics are among the sectors targeted by the facility, alongside energy, information and communication technologies and projects linked to critical minerals.

For transport infrastructure, project preparation can determine whether a proposed road, logistics platform, rail connection or other infrastructure project can progress to financial close. Detailed traffic forecasts, engineering studies, operating models and risk allocation are among the elements required before major capital can be committed.

For logistics operators and supply chain companies, the potential impact will depend on which projects are selected and subsequently financed. Projects that reach implementation could increase transport capacity, improve connections between production centres and markets, and reduce infrastructure-related bottlenecks.

A facility focused on Southern Africa

The initial focus will be on South Africa and Southern Africa, with the possibility of extending the facility to other African countries where Afreximbank and DBSA have a common interest.

Projects prepared through the JPPF may subsequently seek financing from either institution, subject to separate assessments and approvals. They could also be presented to private investors, development finance institutions and commercial banks.

The agreement builds on cooperation between Afreximbank and DBSA on trade finance and risk-sharing. The new facility operates further upstream, addressing the preparation phase before financing and construction.

Why it matters

• Infrastructure pipeline: funding for feasibility and structuring can help move projects beyond the planning stage.
• Transport and logistics capacity: selected projects could strengthen connections between economic centres, production areas and regional markets.
• Access to finance: better-prepared projects can provide lenders and investors with the technical and financial information required for investment decisions.

A regional dimension for supply chains

The facility also connects with broader regional integration efforts in Southern Africa and the implementation of the African Continental Free Trade Area (AfCFTA).

For regional supply chains, infrastructure investment depends not only on available capital but also on the quality of projects entering the financing pipeline. Roads, railways, logistics hubs, energy infrastructure and digital systems require detailed preparation before construction can begin.

The immediate focus will therefore be on identifying projects that can use the $20 million project preparation facility. For the transport and logistics sector, the next step will be to determine which projects move from preparation to financing and, ultimately, physical implementation.

Sector: Regional Corridors
Country / zone: South Africa and Southern Africa
Primary keyword: $20 million project preparation facility
Secondary keywords: Southern Africa infrastructure, transport and logistics, Afreximbank, DBSA, infrastructure financing
News angle: Afreximbank and DBSA are establishing a $20 million facility to prepare infrastructure and transport projects for future financing in Southern Africa.