African Export-Import Bank (Afreximbank) and the Uganda Development Bank (UDB) have signed a Joint Project Preparation Facility Framework Agreement to provide early project preparatory financing and technical support services to public and private sector entities.
This is aimed at boosting Uganda’s industrialization and export development activities, according to the information obtained from Afreximbank. Under the terms of the framework agreement, Afreximbank and UDB established a joint project preparation facility to unlock investments in priority sectors, such as, energy, transport and logistics, special economic zones/industrial parks, manufacturing, agro-processing, hospitality and tourism, mining, solid minerals and service sectors.
The facility will assist in de-risking projects and rapidly advance their development from concept stage to bankability by covering the preparation of feasibility studies, project development and advisory services, and related costs. The two Banks aim to mobilize up to US$ 25 million in the form of project preparation funds for investments in Uganda.
Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development Bank (Afreximbank), signed the agreement on behalf of Afreximbank while Mr. Samuel Edem Maitum, Director of Credit, UDB signed on behalf of his organisation on 14 June 2024 in Nassau, The Bahamas.
Commenting on the execution of the agreement, Mrs. Awani stated: “The JPPF is a critical collaborative tool through which the Bank and its partners pool resources to prepare bankable projects, given that one of the major challenges in developing projects was moving commercially viable projects to financial close. “Through this partnership, Afreximbank intends to work alongside UDB to prepare quality, bankable projects to attract investments from both the public and private sector.” She added that the JPPF will be instrumental in catalysing and mobilizing downstream investments.
Mr. Maitum noted that several transformative project ideas remain unimplemented in Uganda due to the limited availability of technical and financial support to ensure Bankability.
He stated that UDB’s collaboration with Afreximbank through the Joint Project Preparation Facility “shall unlock several transformative private and public sector-led projects. The collaboration shall also enable the flow of capital to the jointly prepared projects.”
He extended appreciation to Afreximbank for the collaboration opportunity and confirmed UDB’s commitment towards ensuring the success of the initiative.
The implementation of the agreement is expected to help accelerate economic growth in Uganda through increased private sector investments in the targeted sectors and to help position Uganda as an attractive investment destination through the supply of a steady stream of investment ready projects.