The African Export-Import Bank (Afreximbank) has launched a project preparation facility aimed at increasing the availability of well-prepared and feasible projects in Africa and making them attractive to investors.
The Afreximbank Project Preparation Facility (APPF), initiated as part of the African Investment Forum on November 8th in Johannesburg, South Africa, provides technical and financial assistance to companies in the early stages of project preparation and development, from concept to banking. The point at which such a project can attract interest from equity investors and debt financiers.
Afreximbank has established an APPF of up to $ 15 million with early capital investment.
Speaking during launch, Benreict Oramah, an Afreximbank professor, said the facility would support transactions to implement a logistics platform that supports export growth and diversification, or promote the assimilation of African commodities into the global value chain or increase volume and flow . It provides goods and services that are tradable along the trade routes of Africa.
According to President Oramah, this facility supports African continental trade and the mandates and strategies of African continental banks to encourage industrialization and export development activities on the continent.
Tshepo Mahloele, chief executive officer of Harith General Partners, a leading pan-African infrastructure developer, said the APPF "took the bold step in the right direction to support Africa to take full advantage of Africa's potential while risking initial investment. In the cycle ".
Harith said that the project preparation phase was often overlooked as ensuring the efficient and professional preparation of infrastructure projects, Mahloele said. According to him, Africa has long penned poor schemes and led to infrastructure project backlogs that cut GDP growth by more than 2% a year.
Afreximbank's involvement will quickly track the economic development of Africa by complementing ongoing project preparation and shortening project preparation cycles, he said.
Zitto Alfayo, Project Finance's manager, said the APPF will operate on a full payback basis and will be open to African governments, public-private partnerships and private businesses.
Certain sectors of intervention were activities related to the development of logistics platforms such as value added projects supporting industrial parks, manufacturing and services exports, trade services, ICT and trade activation infrastructure covering energy, transportation and logistics sectors.