The Shelter Afrique Development Bank (ShafDB) and the African Export-Import Bank (Afreximbank) have signed a landmark Joint Project Preparation Facility (JPPF) Framework Agreement, unlocking a potential US$1 billion in cumulative investments to transform housing, urban development, and trade infrastructure across Africa.
The agreement was signed on the sidelines of the fourth Intra-African Trade Fair (IATF2025), currently underway in Cairo, Egypt. The JPPF is expected to serve as a catalyst for sustainable development, driving early-stage project financing and ensuring projects transition seamlessly from concept to bankability.
What the JPPF Means for Africa
The Joint Project Preparation Facility is designed to address two persistent challenges that stall infrastructure and housing development across the continent:
- Weak project preparation — Many projects fail to progress beyond concept due to a lack of resources for feasibility studies, environmental assessments, and technical design.
- Funding bottlenecks — Without early-stage financing, projects struggle to attract private sector or multilateral investment.
By pooling the expertise of ShafDB in housing and urban development with Afreximbank’s track record in project preparation and trade financing, the JPPF aims to:
- Accelerate housing and construction projects across Africa’s rapidly urbanizing cities.
- Support industrial and manufacturing growth, particularly in building materials and logistics platforms.
- Facilitate the creation of special economic zones (SEZs) and industrial parks to attract both domestic and foreign investment.
- Enhance capacity-building by training ShafDB staff in project preparation skills, ensuring sustainable project pipelines.
A Strategic Response to Africa’s Urbanization Challenge
Africa is undergoing the world’s fastest rate of urbanization, with cities expected to add 950 million people by 2050 (UN-Habitat). Yet, the continent faces an estimated housing deficit of 56 million units, with nearly 90% of urban dwellers in sub-Saharan Africa living in informal housing.
The JPPF partnership will channel early-stage financing into bankable, impact-driven projects that:
- Expand access to affordable housing.
- Strengthen healthcare and tourism infrastructure.
- Support commercial and residential development to create liveable, sustainable cities.
- Promote trade hubs that integrate African economies under the African Continental Free Trade Area (AfCFTA).
The Bigger Economic Picture
The timing of the JPPF is strategic:
- Housing as an economic driver — Studies show that every 1 housing unit built creates 5 jobs and stimulates demand for 30 industries, from cement and steel to furniture and financial services.
- Trade boost — By embedding logistics and industrial platforms into housing and urban projects, the facility will also strengthen intra-African trade.
- Investment attraction — With a strong pipeline of prepared, bankable projects, Africa will be better positioned to attract private sector investors, sovereign wealth funds, and development financiers.
The IATF2025, where the agreement was signed, is itself expected to generate over US$44 billion in trade and investment deals, underscoring the appetite for Africa-focused infrastructure and development financing.
Leadership Insights
- Mr. Thierno-Habib Hann, Managing Director & CEO, ShafDB: “Our sector faces two major structural challenges: the lack of reliable data and the insufficient preparation of projects. At ShafDB, we addressed the first through our VIRAL model, a data-driven housing framework. Today, we tackle the second through this partnership with Afreximbank. The JPPF will enable us to move projects from concept to bankability with speed and precision, unlocking over US$1 billion in investments for sustainable cities across Africa.”
- Ms. Oluranti Doherty, Managing Director, Export Development, Afreximbank: “This partnership aligns with our vision of promoting economic growth and enhancing the quality of projects across Africa. By combining ShafDB’s expertise in housing and Afreximbank’s project preparation experience, we will deliver transformative projects that create tradeable services, economic hubs, and sustainable development opportunities.”
Why This Matters Now
The Joint Facility comes as African governments push for integrated housing and infrastructure solutions that not only provide shelter but also stimulate trade and job creation. It reflects a broader shift from standalone housing projects to comprehensive urban ecosystems that combine:
- Housing
- Healthcare
- Transport and logistics
- Industrial and trade hubs
Both ShafDB and Afreximbank are members of the Alliance of African Multilateral Financial Institutions (AAMFI), reaffirming their commitment to collaboration and innovation in Africa’s development journey.
