South Africa has formally joined the African Export-Import Bank (Afreximbank), with the pan-African lender unveiling an $8bn support package aligned with the country’s industrial development goals.
The accession marks the completion of a three-decade ambition to bring Africa’s most industrialised economy into the Cairo-based institution, giving Afreximbank its first full continental coverage.
The move comes as global multilateral co-operation faces mounting pressure, positioning the bank as a critical alternative financing source for African nations.
“The fate of our economies and the destiny of African people can no longer be tied to the benevolence of others,” George Elombi, president and chair of the board of directors at Afreximbank, said during the accession ceremony on Wednesday, emphasising the continent’s need to leverage its 1.4-billion-strong market and abundant natural resources.
On accession, Export Insurance Corporation Class B shares will be converted to Class A shares. As a Class A shareholder, accession will be on a country basis, with South Africa entitled to a seat on the board of directors.
The $8bn country package, developed with the department of trade, industry & competition under minister Parks Tau, targets key sectors aligned with the nation’s industrial policy framework. Priority areas include mineral processing, motor manufacturing expansion and industrial park development, which are sectors critical to the government’s economic transformation agenda.
The bank will partner with local development finance institutions, including the Industrial Development Corporation, Development Bank of Southern Africa and Public Investment Corporation, alongside commercial banks such as Rand Merchant Bank, Standard Bank, Absa and Nedbank.
Afreximbank has committed an additional $3bn inclusive plan targeting small and medium-sized enterprises under the Transformation Fund.
The fund will be in a special purpose vehicle incubated by the National Empowerment Fund, targeting a small set of priority sectors — renewable energy, manufacturing, agro-processing, logistics and digital infrastructure — chosen for their ability to deliver jobs and industrial impact. The fund will offer grants, loans, equity and business development support.
President Cyril Ramaphosa said during the ascension ceremony the $3bn financing for the transformation fund will support “black businesses who were held back by the evil apartheid system from being active participants in the economy of our country”.
“This is where I am often amazed at those who have been privileged in the party system. We’re trying to block ourselves as black people as we seek to achieve becoming real economic actors in the economy of our country. We thank Afrix and the bank for giving muscle to the objective we have,” Ramaphosa said.
Since 2018, Afreximbank has invested in the economy through initiatives including a $1bn South Africa-Africa trade promotion programme with the Export Credit Insurance Corporation and support for the $24bn Mozambique liquefied natural gas project.
Current project pipelines in South Africa exceed $6bn, spanning healthcare, financial services, manufacturing, energy and mining sectors at various review stages.
South Africa’s accession strengthens Afreximbank’s role in implementing the African Continental Free Trade Area, which aims to create a single market across the continent. The bank views South Africa’s manufacturing base and regional economic influence as critical to boosting intra-African trade, which represents less than 20% of total continental commerce.
“This partnership could not have come at a better time,” Elombi noted, referencing global economic uncertainties and the need for Africa to build resilient, internally focused economic structures.
• With additional reporting from Tiisetso Motsoeneng
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