African Export-Import Bank (Afreximbank) has launched a $15 million project preparation facility aimed at increasing the availability of viable well-prepared projects in Africa.
A statement released yesterday by the bank indicated that the Afreximbank Project Preparation Facility (APPF) set up with an initial seed capital investment of up to $15 million was aimed at making projects bankable and attractive to investors.
Launched in Johannesburg, South Africa, on the sidelines of the Africa Investment Forum, the APPF will provide technical and financial support to early stage companies in the preparation and development of projects from conceptual stage to bankability stage, the point at which such projects can attract interest from equity investors and debt financiers.
Speaking during the launch, Afreximbank President Prof. Benedict Oramah said that the facility would support transactions that sought to implement logistical platforms that supported export growth and diversification, or facilitated the assimilation of African commodities into global value chains, or increased the volume and flow of tradeable goods and services along Africa's trade corridors.
Oramah said the facility supports the Afreximbank's mandate and strategy which seeks to promote intra-African trade, and industrialization and export development activities in the continent.
Also speaking, Tshepo Mahloele, Chief Executive Officer of Harith General Partners, a leading pan-African infrastructure developer, said the initiative was "a bold step in the right direction to assist Africa to unleash its full potential through de-risking of investments early on in the project preparation cycle".