South Africa Afreximbank $8B for Mining Auto Manufacturing

South Africa has become the 54th full member of the African Export-Import Bank (Afreximbank), the continent’s primary trade finance institution, qualifying for an initial $8 billion financing package aimed at bolstering its mining, automotive, and manufacturing sectors.

The accession was formalised at a signing ceremony in Johannesburg, following approval by the South African Parliament in 2025. President Cyril Ramaphosa welcomed the agreement, stating it “will inject capital into priority industrial projects, export diversification, infrastructure development, and transformation initiatives.” He highlighted the timing as critical amid global economic uncertainties, noting that membership will enhance access to trade finance essential for structural transformation, value-added industrialisation, and investment in infrastructure and energy.

Afreximbank, a multilateral institution headquartered in Cairo, was established in 1993 to promote intra-African and extra-African trade. With South Africa’s accession, the Bank achieves full continental coverage, a milestone noted by its President and Chairman, Dr. George Elombi. He described the move as a decisive step toward uniting around the continent’s economic interests and advancing the desired change in Africa’s trade structure.

The partnership is closely aligned with the African Continental Free Trade Agreement (AfCFTA), a cornerstone of the African Union’s Agenda 2063 development strategy. AfCFTA Secretary-General Wamkele Mene emphasised that South Africa’s membership sends a strong political and economic signal, expanding access to trade crucial for structural economic transformation and macroeconomic stability. He noted it will support investments in value-added industries and enable South African companies to participate more fully in regional value chains under the AfCFTA.

Elombi announced that Afreximbank and South Africa have identified a significant financing pipeline aligned with the country’s National Development Plan 2030 and its industrial and trade priorities. This includes collaborative programmes such as the South Africa-Africa Trade and Investment Promotion Programme (SATIPP), the Afreximbank Guarantee Programme, financing for industrial parks and special economic zones, and support for project finance, export trading companies, and creative industries.

Collectively, these initiatives are expected to strengthen South Africa’s export capacity, enhance its industrial base, and improve regional value chains. The move also underscores Africa’s push for greater economic self-reliance, reducing dependence on external systems amid rising geoeconomic tensions and trade fragmentation.

By integrating one of Africa’s largest economies into its framework, Afreximbank bolsters the continent’s capacity to finance its own development priorities. For South Africa, the partnership promises to deepen economic connections across Africa, directly supporting the implementation of the AfCFTA and promoting inclusive growth, job creation, and increased investment. The collaboration marks a strategic step toward building collective economic resilience and advancing continental integration.