South Africa has joined the ranks of the African Export-Import Bank (Afreximbank), bringing with it an US$8bn country programme that will target industrialisation efforts in the republic, and support projects in sectors like mining, automotives and manufacturing
It becomes the 54th state to accede to the banking group, marking the formal entry of one of Africa’s largest economies into the Bank’s membership, “heralding deeper financial sovereignty,” an Afreximbank statement read.
The bank called the accession a “historic milestone” as the two partners seek to unlock trade opportunities “within a global financial architecture that is rapidly fragmenting due to protectionist policies and shifting trade blocks.”
The US$8 billion country programme aims to enhance industrial development and regional supply chains and boost intra-African trade and investment flows, Afreximbank said.
“We have put together what we consider an important package of US$8bn for South Africa,” said Dr George Elombi, the bank’s president and chairman.
“The country programme is aligned with South Africa's national development plan 2030 and national industrial and trade priorities, and targets key strategic areas.”
He added that Afreximbank’s current pipeline of projects in South Africa, at different stages of review, already exceeds US$6bn, spanning healthcare, financial services, manufacturing, energy and the industrial and mining sectors.
Leveraging Afreximbank’s trade infrastructure and pan-African reach, South Africa can also more readily diversify export markets and further regional economic integration.
South African President Cyril Ramaphosa called it a milestone in the quest to realise the economic integration of our continent.
“South Africa’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,” he said.
“Once finalised, the South African-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.”
He said one of those areas to receive immediate effect will be the nation’s Transformation Fund with the aim of supporting more black businesses.
“This partnership will strengthen in more ways than one South Africa’s ability to support South African exporters, industrial projects and regional value chains while advancing our continent’s progress.”
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South Africa nets US$8bn from Afreximbank entry
Afreximbank accession to help power South Africa’s economy (Image source: Adobe Stock)
