The African Export-Import Bank (Afreximbank) has set aside $8bn (R129.1bn) for SA to fund key economic programmes and for the transformation fund after the country became a member of the financial institutions.
According to George Elombi, president and chair of the board of directors of Afreximbank, the package “is aligned with South Africa’s national development plan 2030 and national industrial and trade priorities, and targets key strategic areas”. These include heavy investments in the local processing of natural resources.
“In particular, we will prioritise mineral processing, expansion of automotive manufacturing and development and expansion of industrial parks and special industrial zones.
“We also plan to facilitate access to regional and continental markets, thereby realising value from the single market under the African Continental Free Agreement.”
Elombi said investment will also go towards programmes directed at small and medium enterprises. As part of the $8bn facility, Afreximbank has designed a $3bn (R48.4bn) inclusive package to support “the resourceful, but marginalised and vulnerable segments of the South African economy”, said Elombi.
Speaking at the signing ceremony, President Cyril Ramaphosa said SA’s “accession to the African Export-Import Bank affirms our commitment to African industrial development and to deepening trade, investment and development across our continent. Once finalised, the South Africa‑Afreximbank country programme will be operationalised with a finance package that will initially support a range of strategic projects across the trade and industrial cluster”.
We are implementing far-reaching reforms to restore growth, improve competitiveness and expand inclusion. We are working to accelerate economic growth by implementing structural reforms, increasing infrastructure investment and through targeted industrial policy
— President Cyril Ramaphosa
He said the programme will inject capital into:
- priority industrial projects;
- export diversification;
- infrastructure development; and
- transformation initiatives.
“One of the areas we are going to focus on with immediate effect is to give muscle to our transformation fund to support black businesses who were held back by the apartheid system from being active participants in the economy of our country.”
Ramaphosa said South Africa accedes to Afreximbank at a time of challenge and opportunity for the continent.
“Global economic uncertainties, climate risks and shifting trade patterns underscore the need for building economic resilience. As a country, we are implementing far-reaching reforms to restore growth, improve competitiveness and expand inclusion. We are working to accelerate economic growth by implementing structural reforms, increasing infrastructure investment and through targeted industrial policy.”
Over the past few years Afreximbank has invested billions across critical sectors in SA, including:
- contributing to the participation of South African banks in the $24bn Mozambique liquidity natural gas project through a risk-sharing scheme with the Export Credit Insurance Corporation.
- providing the base financing for the preparation of bankable feasibility studies for a $500m titanium dioxide manufacturing plant in Richards Bay industrial development zone; and
- significant financing to the critical state-owned enterprises Eskom and Transnet to enable them to continue to carry out their important roles.
“Our pipeline of projects in South Africa, all at different stages of review within the bank, exceeds $6bn, spanning health care, financial services, manufacturing, energy, industrial and mining sectors,” said Elombi.
South Africa is the continent’s highest regional contributor to intra-African trade, accounting for 19.1% of the continent’s total trade in 2024.
Business Day
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