The Urban Development Bank of Nigeria Plc (UBDN) has signed a co-operation agreement with the Development Bank of South Africa (DBSA). The bi-lateral agreement between the two development finance institutions signals a new era of economic cooperation for both nations and clears the path for the sharing of ideas and expertise on a broad range of infrastructure-related matters.

This multi-purpose agreement will promote business, technology and knowledge exchange between two regional economic blocs, the Economic Community of West African States (ECOWAS) and the Southern African Development Community (SADC), and enhance the capacities of stakeholder groups on both sides of the Nigeria – South Africa border in the delivery of infrastructure projects.

The Cooperation Agreement between the two economies was signed in Midrand, South Africa by the managing directors of both development banks, Mr Adekunle AbdulRazaq Oyinloye of UDBN and Dr. Paul Kibuuka of the DBSA Development Fund on behalf of their respective organizations.

The two development banks are collaborating with “the express goal of improving the capacities of both public and private sectors to deliver infrastructure,” Mr Oyinloye said.

He stressed the need for synergy between leading DFI’s that have excelled in addressing infrastructure especially through Public Private Partnerships (PPPs), noting that the development of infrastructure is the essential catalyst for sustained economic development.

On his part, Dr Kibuuka highlighted the versatility of the DBSA as a Development Finance Institution (DFI) wholly owned by the government of South Africa. The DBSA simultaneously focuses on investments and joint ventures/partnerships in the public and private sector financing.

According to Kibuuka, “The DBSA continues to make significant contributions towards sustainable socio-economic development by funding physical, social and economic infrastructure”. He said that the DBSA would “work closely with UDBN to build on the great work being done at the Local and State Government levels of Nigeria in order to replicate our success stories with municipalities (sub-national governments) and large ticket PPP infrastructure deals in Nigeria”.

Under the terms of the agreement, support will be provided in three key areas. Technical support will be provided in all the critical components of infrastructure projects including project structuring, financing options, funds mobilization, bid management and evaluation and negotiations. The agreement will also provide training, capacity building and overall institutional strengthening. Another feature of the agreement is that it will afford staff of both banks the opportunity to acquire firsthand experience of working on large ticket infrastructure projects through the secondment of professionals between the two institutions.