About Us
Welcome to the Southern Africa Development Community (SADC) Project Preparation and Development Facility (PPDF). The aim of the PPDF is to ensure that long-term and sustainable flow of technically, economically and financially viable infrastructure projects are prepared and financed for the SADC region.
The PPDF is managed by a PPDF Secretariat which is charged with the day-to-day management of PPDF and is responsible for the development of a project pipeline, administration, management, and disbursement of funds. This role is being executed by the Development Bank of Southern Africa (DBSA) as the PPDF Secretariat, reporting to the SADC Secretariat and the Advisory and Oversight Committee.
In order to operationalise the PPDF, in September 2014, the first Memorandum of Agreement (MOA) was concluded between the SADC Secretariat and the DBSA. Under the terms of the MOA, DBSA assumes responsibility for the administration, management, and disbursement of PPDF funds.
Initial funding for the SADC PPDF came from both the European Union (EU) and the German government through KfW; however, as of now, KfW is the exclusive source of funding for the SADC PPDF, as the EU funding expired in December 2021 with payments channeled towards six (06) projects.
History of the PPDF
Infrastructure was identified as one of the major drivers for economic growth and poverty reduction however funding for the preparation of projects in the public sector is lacking. This is largely as a result of project sponsors not having sufficient funds to do the required feasibility studies to prepare projects to a bankable stage.
It was therefore decided that priority should be given to the establishment of a grant financing vehicle to support the promotion and preparation of major infrastructure projects. This is based on the prevailing view amongst donors and private investors that the main constraint to the development of economic infrastructure was not the unavailability of investment capital in the region, but rather the lack of expertise with regard to the successful development of bankable projects for market presentation.
In August 2006, the SADC Heads of State adopted and signed the Protocol on Finance and Investment, under which it was agreed to establish a Project Preparation and Development Facility (PPDF).The Development Bank of Southern Africa (DBSA) has been appointed by the SADC Secretariat as the implementation agent and fund manager for the Project Preparation and Development Facility (PPDF). In order to operationalise the PPDF, in August 2008, a Memorandum of Understanding (MOU) was concluded between the SADC Secretariat and the DBSA. Under the terms of the MOU, DBSA assumes responsibility for the administration, management, and disbursement of PPDF funds however all decisions will be taken by the SADC PPDF Steering Committee and is final.