The agreement was finalised between a South African delegation led by Minister of Trade, Industry and Competition Parks Tau and senior Afreximbank officials headed by the bank’s president, Dr George Elombi.
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Minister of Trade, Industry and Competition Parks Tau has secured a new partnership with the African Export-Import Bank (Afreximbank), which could unlock billions of dollars in funding for South Africa’s industrialisation, export growth and regional trade ambitions.
Tau signed a Memorandum of Understanding (MoU) with Afreximbank following South Africa’s formal accession to the multilateral lender as a full sovereign Class A shareholder earlier this year.
The move gives South Africa access to a country programme valued at up to $14 billion (around R230bn) and marks a significant deepening of relations between Africa’s most industrialised economy and one of the continent’s leading development finance institutions.
The agreement was finalised between a South African delegation led by Tau and senior Afreximbank officials headed by the bank’s president, Dr George Elombi.
Tau described the partnership as a key instrument for advancing South Africa’s industrial policy objectives and strengthening the country’s competitiveness in regional and global markets.
“The proposed Country Programme is designed to support South Africa’s objectives linked to structural economic transformation, industrialisation, export development, and regional economic integration objectives,” Tau said.
He explained that the multi-year programme would combine financing, risk mitigation, advisory services and catalytic interventions focused on priority sectors including manufacturing, mineral beneficiation, energy, infrastructure, special economic zones and industrial parks.
The programme will also support South African companies seeking to expand into African markets through the African Continental Free Trade Area (AfCFTA), while providing funding to State-Owned Enterprises, financial institutions and businesses engaged in export-oriented activities.
Tau emphasised that the initiative extends beyond conventional project financing.
“It is a strategic trade and industrial partnership that will enable South Africa to achieve key economic transformation objectives such as positioning SA as a global leader in green hydrogen and critical minerals,” he said.
“It will also assist in efforts to redistribute economic power through inclusive industrialisation, strengthen African value chains and AfCFTA integration towards building lasting trade infrastructure.”
South Africa’s accession to Afreximbank also strengthens the country’s influence within the institution. By becoming a Class A sovereign shareholder, South Africa gains a greater role in the governance and strategic direction of the bank while gaining enhanced access to its trade finance and development programmes.
Afreximbank has committed an initial $8bn country package, equivalent to about R128bn, to support industrialisation, infrastructure investment and trade integration initiatives.
The country programme is expected to focus heavily on value-added industrial activity, particularly mineral beneficiation, automotive manufacturing and strategic infrastructure projects, including energy generation and transmission.
The partnership also supports government’s plans to establish a domestic export-import bank aimed at supporting exporters, industrial projects and regional value chains.
He said discussions with Afreximbank are continuing to refine the details of the programme and ensure that it aligns closely with South Africa’s industrial strategy and economic priorities.
“The idea is to have a programme linked directly to national industrial policy, our intent and our mission as a country, both on the continent and internationally, as we diversify our markets and identify strategic partners,” Tau said.
Government expects to finalise the details of the country programme in the coming weeks, with the objective of accelerating growth, supporting industrial expansion and deepening South Africa’s integration into African and global value chains.
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