The execution of the accord is anticipated to facilitate the acceleration of economic expansion in Uganda by augmenting private sector investments in the designated sectors.
The African Export-Import Bank (Afreximbank) and the Uganda Development Bank (UDB) have entered into a Joint Project Preparation Facility Framework Agreement. This agreement aims to provide early project preparatory financing and technical support services to public and private sector entities in Uganda. The goal is to stimulate industrialization and export development activities in the country.
Under the terms of the framework agreement, Afreximbank and UDB have established a joint project preparation facility. This facility will focus on unlocking 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 reducing project risks and accelerating their development from the concept stage to bankability. It will cover 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 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 observed that numerous transformative project concepts in Uganda lack implementation due to the scarcity of technical and financial assistance necessary for ensuring bankability.
He affirmed that UDB's partnership with Afreximbank through the Joint Project Preparation Facility will facilitate the realization of numerous transformative private and public sector-led projects. This collaboration will also enable the provision of capital to the jointly prepared projects.
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 observed that numerous transformative project concepts in Uganda lack implementation due to the scarcity of technical and financial assistance necessary for ensuring bankability.
He affirmed that UDB's partnership with Afreximbank through the Joint Project Preparation Facility will facilitate the realization of numerous transformative private and public sector-led projects. This collaboration will also enable the provision of capital to the jointly prepared projects.
He expressed gratitude to Afreximbank for the opportunity to collaborate and reaffirmed UDB's dedication to ensuring the success of this initiative.
The agreement's execution is anticipated to expedite Uganda's economic growth by drawing in more private sector investments in the targeted industries and establishing Uganda as a desirable investment destination by consistently providing investment-ready projects.
The agreement's execution is anticipated to expedite Uganda's economic growth by drawing in more private sector investments in the targeted industries and establishing Uganda as a desirable investment destination by consistently providing investment-ready projects.