Afreximbank commits $28m to Ugandan contractor for regional projects

The African Export-Import Bank (Afreximbank) has approved a $28 million financing facility for Uganda-based engineering, procurement and construction (EPC) contractor DOTT Services Limited to support infrastructure projects worth more than $550 million across East and Central Africa.

The dual-tranche facility has been activated, with disbursements already underway to strengthen the company’s capacity to execute existing contracts and pursue new infrastructure opportunities in Uganda, Tanzania, Kenya and the Democratic Republic of Congo (DRC).

The financing, provided under Afreximbank’s EPC Contract Promotion Initiative, seeks to increase the participation of African-owned and locally based contractors in major infrastructure developments, a sector traditionally dominated by international construction companies.

The initiative addresses financing constraints that have limited the ability of African engineering firms to compete for and deliver large-scale projects, particularly those involving cross-border operations.

Humphrey Nwugo, Afreximbank’s Director of Regional Operations at its Eastern Africa office, said the facility would help build competitive African contractors capable of delivering infrastructure that supports industrialisation, trade and regional economic integration.

He said inadequate access to financing had historically prevented African EPC companies from securing a significant share of infrastructure contracts, despite their technical expertise and regional presence.

“By supporting DOTT Services Ltd, a well-established regional contractor with operations across five African countries, we are addressing a critical financing gap that has historically constrained the ability of African firms to participate meaningfully in large-scale, cross-border infrastructure projects,” Nwugo said.

The bank expects the financing to strengthen DOTT’s ability to execute strategic infrastructure projects while increasing the movement of goods, equipment and services across African markets.

Nwugo noted that many commercial banks in Africa were reluctant to finance regional infrastructure projects because of the cross-border risks involved, while international lenders often prioritised contractors from outside the continent.

This has created a financing gap for African construction companies seeking to compete for major infrastructure contracts.

Through its EPC Contract Promotion Initiative, Afreximbank provides financing, business matchmaking, partnerships, technical collaboration and letters of support to help African contractors secure and execute projects across the continent.

The bank says the programme is intended to increase local participation in infrastructure development while ensuring that more economic value, employment and technical expertise remain within African economies.

DOTT Services has operated in Africa for 28 years, with a presence in Uganda, Tanzania, South Sudan, Zambia and the Democratic Republic of Congo. The company also maintains offices in Italy and the United Kingdom and employs more than 6,000 people.

Its regional operations involve the procurement and distribution of construction materials and equipment, including bitumen, asphalt, steel, spare parts and heavy construction machinery.

The company’s cross-border supply chains make it an important participant in regional trade, particularly in the movement of construction inputs and engineering services needed for infrastructure development.

The $28 million facility therefore represents more than corporate financing, reflecting Afreximbank’s broader strategy of strengthening African contractors as regional infrastructure markets expand.

For East Africa, supporting indigenous EPC firms could help retain a greater share of infrastructure spending within the region, create employment, develop technical expertise and strengthen local supply chains.

It could also improve the capacity of African companies to participate in major transport, energy and industrial projects as governments pursue regional connectivity and deeper integration under the African Continental Free Trade Area (AfCFTA).

 

Terry Njenga
Terry Njenga
Terry Njenga is an experienced Journalist with over six years of experience in Broadcast Journalism and three years in Public Relations. She covers a wide range of topics, including Education, Health, Finance, Technology, Environment, Current Affairs and Human-interest stories. Passionate about impactful storytelling,

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