SA Secures Major Boost for Infrastructure with Afreximbank Deal and New Bid Window

The dual developments include the launch of the second bid window for project preparation funding and the signing of a landmark framework agreement with the African Export-Import Bank (Afreximbank).

Public Works and Infrastructure Minister Dean Macpherson has welcomed two significant moves by Infrastructure South Africa (ISA) that aim to accelerate infrastructure delivery, attract new investment, and strengthen the pipeline of bankable projects in the country. The dual developments include the launch of the second bid window for project preparation funding and the signing of a landmark framework agreement with the African Export-Import Bank (Afreximbank).

Bid Window II: Expanding the Pipeline of Bankable Projects

Last week, ISA opened its second bid window for project preparation support. This mechanism allows national and provincial government departments, State-Owned Enterprises, public entities, and municipalities to apply for funding that will help prepare public projects to reach bankability and readiness for implementation.

Building on the success of Bid Window I, which culminated in the presentation of the Top 7 infrastructure initiatives at the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) earlier this year, Bid Window II will provide not only financial assistance but also technical, legal, and governance expertise. The initiative aims to de-risk projects and position them more attractively for potential investors.

Macpherson emphasized that ensuring projects are properly designed, structured, and compliant is a prerequisite for unlocking both public and private funding. "Bid Window II will ensure that more projects are properly prepared, de-risked, and ready to attract investment," he said.

Afreximbank Partnership: A R87 Million Commitment

Complementing the new bid window, ISA also formalized a partnership with Afreximbank in Algeria on Monday. Through this framework agreement, the parties have established a Joint Project Preparation Facility (JPPF), with Afreximbank committing USD 5 million (approximately R87 million) to the initiative.

The JPPF will focus on advancing projects in sectors critical to South Africa's development, including energy, transport and logistics, and digital infrastructure. By combining Afreximbank's financial resources and ISA's strategic oversight, the facility aims to create a pipeline of high-quality projects that are investment-ready and capable of catalyzing economic growth.

A Vote of Confidence in South Africa's Infrastructure Programme

In his statement, Minister Macpherson congratulated ISA's acting head, Mameetse Masemola, for leading these initiatives. He described the developments as a clear signal of confidence in South Africa's infrastructure programme and its potential to stimulate growth, create jobs, and address the country's infrastructure backlog.

"These two steps taken by Infrastructure South Africa represent an important move to turn our country into a construction site," Macpherson said. "The Joint Project Preparation Facility with Afreximbank is a vote of confidence in our programme and its potential to drive economic growth and job creation."

He added that the ability to crowd in funding from Development Finance Institutions (DFIs) and private investors is critical to closing South Africa's infrastructure gap. According to the Minister, these partnerships show the expanded role ISA can play in coordinating infrastructure delivery and supporting South Africa's broader economic recovery agenda.

Strengthening Growth and Job Creation

Macpherson further underscored that these actions directly align with government's vision of stimulating the construction sector, boosting investor confidence, and creating thousands of jobs. He said that preparing bankable projects and aligning them with international financing standards will ensure South Africa can compete effectively for global capital.

"I want to commend ISA and our partners for taking these bold actions to ensure that South Africa has a credible, bankable and investment-ready pipeline of infrastructure projects. This is how we will get shovels in the ground, stimulate economic growth, and create thousands of jobs for our people," he concluded.

The twin initiatives mark a strategic step forward in ensuring South Africa's infrastructure pipeline is not only credible but also sufficiently robust to meet the country's long-term development goals.