Republic of South Africa and Afreximbank Sign US$14 Billion Country Programme to Strengthen Industrial Development and Trade
The African Export-Import Bank (Afreximbank) and the Government of the Republic of South Africa have formalized a partnership through a memorandum of understanding (MoU) aimed at enhancing the nation’s industrial development, trade expansion, and regional integration. This agreement was signed on June 20, 2026, in Alamein, Egypt, and establishes a substantial US$14 billion country programme.
Key Developments in the Partnership
The MoU was executed by Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, and Hon. Mpho Parks Tau, South Africa’s Minister of Trade, Industry and Competition. This partnership signifies a pivotal moment in strengthening cooperation between South Africa and Afreximbank, particularly following South Africa’s accession to the Establishment Agreement of Afreximbank in February 2026.
The agreement is designed to support investments in critical areas such as industrial infrastructure, energy generation, and transmission. It aims to enhance South Africa’s industrial competitiveness and improve trade and investment ties with other African nations.
Focus on Inclusive Development
A significant component of the Country Programme is the Afreximbank Inclusive Development Support Programme for South Africa. This initiative is tailored to address structural gaps within the economy and to broaden access to finance for historically disadvantaged groups. The objective is to empower these groups to build assets and engage meaningfully in strategic sectors, thereby fostering a more equitable distribution of economic opportunities across the country. Afreximbank has allocated US$3 billion specifically for this initiative.
Dr. George Elombi emphasized the importance of this MoU, stating that it represents a significant advancement in the partnership between Afreximbank and South Africa. He noted that the programme is expected to unlock investment flows into vital sectors of the South African economy, including the processing of mineral and agricultural commodities. Additionally, it aims to facilitate trade between South Africa and the broader African continent under the African Continental Free Trade Area (AfCFTA), promote South African investments across Africa, and enhance financial and economic inclusion.
Advancing Regional Value Chains
Hon. Mpho Parks Tau highlighted that the MoU also aims to bolster the implementation of the AfCFTA by fostering stronger regional value chains (RVCs) and addressing cross-border challenges that hinder the free movement of goods, services, and capital across Africa. This focus on regional integration is crucial for enhancing trade efficiency and economic collaboration among African nations.
The partnership will also involve the re-launch and funding of the South Africa-Africa Trade and Investment Promotion Programme (SATIPP) 2.0. Plans include establishing a South Africa Exim Bank, providing technical, management, financial, and operational support, as well as seed funding. Joint project origination and preparation activities will be undertaken, alongside financing for the establishment and expansion of industrial parks and Special Economic Zones (SEZs). Furthermore, the collaboration will co-finance energy projects, including renewable energy initiatives, and provide institutional capacity building, technical assistance, and advisory services.
Alignment with National Development Goals
The Country Programme aligns with South Africa’s National Development Plan (NDP) 2030, the Medium Term Development Plan (2024-2029), and the Implementation Plan to drive Growth and Inclusion (GAIN). These strategic frameworks underscore the commitment to fostering sustainable economic growth and inclusivity in South Africa.
The partnership with Afreximbank is expected to play a crucial role in achieving these national objectives, thereby contributing to the overall economic landscape of the continent.
For further details, visit the source: www.zawya.com.
Media Contact:
Vincent Musumba
Communications and Events Manager (Media Relations)
Email: press@afreximbank.com
About Afreximbank:
Afreximbank is a Pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade. For over three decades, the bank has employed innovative structures to deliver financing solutions that support the transformation of Africa’s trade landscape, accelerate industrialization, and boost intra-regional trade. As a strong advocate of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has established a Pan-African Payment and Settlement System (PAPSS) adopted by the African Union as the foundational platform for implementing the AfCFTA. The bank has also set up a US$10 billion Adjustment Fund to assist countries participating effectively in the AfCFTA.
Afreximbank’s total assets and contingencies exceeded US$48.5 billion by the end of December 2025, with shareholder funds amounting to US$8.4 billion. The institution holds investment-grade ratings from several credit rating agencies, including China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), GCR (A), Japan Credit Rating Agency (JCR) (A-), Moody’s (Baa2), and S&P Global Ratings (BBB+). The bank is headquartered in Cairo, Egypt.
For more information, visit: www.Afreximbank.com.
Published on 2026-06-26 16:24:00 • By the Editorial Desk
