SA Secures US$8bn Afreximbank Deal to Boost Industry

Earlier this month, South Africa signed the Instrument of Accession in Johannesburg, becoming the 54th member state to accede to Afreximbank’s Establishment Agreement.

South Africa has secured a US$8 billion financing commitment from the African Export–Import Bank (Afreximbank) in a landmark move aimed at accelerating industrialisation, expanding manufacturing, creating jobs and unlocking greater value from the country’s mineral wealth.

The strategic package follows South Africa’s formal accession as a full sovereign member (Class A shareholder) of the Cairo-headquartered multilateral financial institution — a development that significantly elevates the country’s influence within the bank and strengthens access to its funding instruments.

US$8bn to Drive Reindustrialisation and Trade

The US$8 billion commitment is designed to support:

• Expansion of local manufacturing and mineral beneficiation

• Development of industrial parks and Special Economic Zones (SEZs)

• Investment in energy and bulk infrastructure

• Increased trade finance under the African Continental Free Trade Area (AfCFTA)

• Greater access to regional and continental markets

Afreximbank President and Chairman of the Board, Dr George Elombi, confirmed the scale of the package.

“We have put together what we consider an important package of US$8 billion for South Africa. We will do whatever it takes to support the government and the private sector in building a local economy that serves all South Africans, and that looks out to the wider African continent as a natural source and destination of wealth,” Elombi said.

With Africa representing a market of approximately 1.4 billion people under the AfCFTA framework, the financing positions South Africa to scale up intra-African trade in higher-value manufactured goods rather than exporting raw commodities.

Full Sovereign Membership Unlocks Strategic Influence

Earlier this month, South Africa signed the Instrument of Accession in Johannesburg, becoming the 54th member state to accede to Afreximbank’s Establishment Agreement.

The accession process followed constitutional requirements under Section 231(2) of the Constitution, including Cabinet endorsement and parliamentary approval.

As a Class A shareholder, South Africa now gains:

• Greater voting power and influence over governance and leadership appointments

• Access to Afreximbank’s intervention facilities during market failures or global crises

• Enhanced ability to shape the bank’s strategic direction

• Access to the bank’s investment-grade rating and Preferred Creditor Status

Preferred Creditor Status offers stronger protections than standard commercial debt arrangements and provides more competitive financing and risk coverage for exporters, State-Owned Enterprises (SOEs) and private firms.

Strengthening Trade Finance and Export Competitiveness

The Presidency said sovereign membership will enable South African companies, banks and SOEs to secure improved trade finance and risk mitigation tools — particularly under AfCFTA.

The Export Credit Insurance Corporation (ECIC), South Africa’s state-owned export credit agency under the Department of Trade, Industry and Competition (dtic), said the move strengthens the country’s export financing architecture.

“By attaining Class A status, South Africa will be better positioned to leverage Afreximbank’s network, resources, and financing instruments to support local businesses in accessing broader African markets,” the ECIC said.

South Africa accounted for 19.1% of total intra-African trade in 2024, making it the continent’s largest regional contributor. The partnership is expected to deepen these trade linkages.

Boosting Energy and Just Transition Projects

Afreximbank is expected to co-finance major energy generation and transmission projects — critical for industrial expansion.

The bank could also support South Africa’s just energy transition through climate finance instruments, aligning with the Presidential Climate Commission’s vision of building a low-carbon economy that strengthens energy security while creating jobs.

Energy security remains a cornerstone for industrial growth, particularly in sectors such as steel, automotive manufacturing, mineral processing and agro-processing.

Driving Mineral Beneficiation and Value Addition

A key focus of the partnership is mineral beneficiation — ensuring South Africa processes more of its gold, platinum group metals, lithium and battery minerals domestically.

Funding could support:

• Smelters and refineries

• Battery mineral processing plants

• Industrial clusters linked to automotive and green energy supply chains

By expanding local processing capacity, South Africa aims to shift from exporting raw materials to exporting higher-value finished products.

Supporting SMMEs and Regional Supply Chains

The US$8 billion framework also includes support for Small, Medium and Micro Enterprises (SMMEs) across strategic sectors such as:

• Automotive components

• Pharmaceuticals

• Agro-processing

• Digital trade and e-commerce

SMMEs will gain access to Afreximbank-backed trade finance, training programmes and digital trade readiness initiatives.

Funding mechanisms are designed to integrate smaller firms into regional value chains, enhancing job creation and industrial diversification.

Partnership with Key Development Institutions

Afreximbank will collaborate with major South African institutions, including:

• Industrial Development Corporation (IDC)

• Development Bank of Southern Africa (DBSA)

• Public Investment Corporation (PIC)

• Commercial banks such as Rand Merchant Bank and Standard Bank

This coordinated approach aims to crowd in private investment and amplify developmental impact.

Towards a South African Export–Import Bank

President Cyril Ramaphosa described the accession as a strategic step toward establishing a South African Export–Import Bank.

“Accession brings us a step closer towards the incubation of a South African Export–Import Bank. Working closely with Afreximbank and building on the experience of our Export Credit Insurance Corporation, we are laying the foundations for a national institution that will support exporters, crowd in investment, and provide financing aligned to our industrial priorities,” the President said.

He added that the move strengthens South Africa’s resilience within an increasingly fragmented global financial system marked by protectionism and shifting trade blocs.

Positioning SA for Continental Leadership

Established in 1993, Afreximbank’s mandate is to facilitate and expand intra-African and extra-African trade. Its instruments are available to governments, financial institutions, large corporates and qualifying private entities aligned with its development objectives.

By securing sovereign membership and unlocking US$8 billion in financing, South Africa is positioning itself to:

• Accelerate industrial transformation

• Deepen continental trade integration

• Strengthen export competitiveness

• Improve infrastructure financing

• Expand job-intensive manufacturing

As Africa’s largest intra-African trader, South Africa now gains a strengthened platform to leverage Afreximbank’s technical expertise, financial instruments and pan-African footprint to drive sustainable, inclusive growth.