Document background
The Development Funding Agreement is a crucial document used in South African development finance transactions to formalize funding arrangements between development finance institutions or commercial lenders and project developers. This agreement is particularly relevant in contexts where funding is required for significant development projects, whether in infrastructure, real estate, or other sectors. The document addresses specific South African regulatory requirements, including compliance with the Broad-Based Black Economic Empowerment Act, environmental regulations, and development legislation. It typically includes detailed provisions for funding disbursement, project milestones, reporting obligations, and security arrangements, while incorporating necessary protections for both the funder and funding recipient. The agreement's structure reflects the complex nature of development finance transactions in South Africa and ensures alignment with local development objectives and legal requirements.
