African financial institutions have signed up project preparation facilities targeting the construction, urban infrastructure and manufacturing sectors across the continent.
African Export-Import Bank and Shelter African Development Bank signed a joint project preparation facility agreement during the 4th Intra-African trade fair in Algiers, targeting investments of more than $1 billion across Africa’s housing, construction and urban infrastructure sectors.
The framework agreement, signed on Tuesday by Afreximbank Managing Director for Export Development Orlanti Doherty and Shelter Afrik CEO Tierno-Habib Khan, establishes an early-stage financing mechanism to progress projects from conceptual plans to bankable investment opportunities.
The facility will target construction, housing, healthcare, hospitality, tourism and building materials manufacturing alongside commercial and residential infrastructure development. Industrial and logistics platforms, including special economic zones, are also within the scope of this initiative.
Africa faces a housing shortage of more than 52 million units as rapid urbanization increases demand for infrastructure across the continent. According to financial leaders who participated in IATF2025, this shortfall is a significant impediment to achieving Africa’s Agenda 2063 development blueprint.
Mr. Doherty highlighted the partnership’s potential to accelerate sustainable urban development across Africa by combining Shelter Afrik’s housing expertise with Afreximbank’s project preparation experience. The partnership aims to develop new opportunities in key sectors while establishing an economic hub that facilitates trade and tradable services.
The initiative includes a capacity-building program to strengthen Shelter Africa’s project preparation teams, reducing Africa’s dependence on foreign-led development programs while ensuring a sustained pipeline of profitable initiatives.
Mr. Han pointed to two major structural challenges facing the housing sector: lack of reliable data and lack of project preparation. Shelter Afrique has tackled data challenges through its VIRAL modeling framework, designed to provide actionable insights for evidence-based decision-making in housing and urban development.
“The Joint Project Preparation Facility will enable us to move projects from concept to implementation quickly and accurately,” Han said, noting that the partnership is transformative in building resilient, inclusive and sustainable cities across Africa.
Both institutions are members of the Alliance of African Multilateral Financial Institutions, which fosters cooperation among African financial institutions to promote trade, investment and sustainable growth.
The agreement emerges as IATF2025 is expected to facilitate more than $44 billion in trade and investment agreements, underscoring Africa’s ambitions to enhance intra-continent commerce and industrialization. The trade fair will be held in Algiers, Algeria, from September 4th to 10th.
Analysts suggest the facility could attract private capital to projects typically stuck in the feasibility stage and create synergies across industries from construction materials to logistics infrastructure.
The housing crisis has broader economic implications beyond providing shelter. Africa’s housing shortage is estimated to cost around $1 trillion, threatening the continent’s economic transformation goals and sustainable development goals.
Shelter Africa was founded in Lusaka, Zambia in 1981 and operates as a pan-African multilateral development bank specializing in housing finance and urban development. The agency is piloting co-financing mechanisms and promoting public-private partnerships as essential solutions to Africa’s housing challenges.
This joint facility represents one of the most significant collaborative efforts in recent years to address Africa’s deepening housing crisis while supporting broader urbanization and industrialization goals.
Project preparation facilities typically provide technical assistance, feasibility studies, and early-stage funding to turn development concepts into investable opportunities that attract commercial funding.
This partnership is in line with the continent’s commitment to foster cooperation among African financial institutions and reduce dependence on external development finance. If successful, it could serve as a model for similar cooperation to address infrastructure gaps across the continent.
Implementation details such as specific funding mechanisms, project selection criteria, and timelines for initial project approvals were not disclosed at the IATF 2025 signing ceremony.
