Pretoria: The South African government has taken a significant step towards boosting industrial growth by securing access to a $14 billion funding programme through Afreximbank. This move is part of the government's broader efforts to enhance State capacity and unlock development finance to drive industrialisation.
According to South African Government News Agency, the Department of Trade, Industry and Competition (the dtic) and the African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MoU) to initiate the massive $14 billion Country Programme. This agreement follows South Africa's decision in April to become a full sovereign Class A shareholder of Afreximbank, which is headquartered in Egypt.
The newly established Country Programme aims to provide South African businesses, State-owned enterprises, and financial institutions with essential trade and industrial finance. The programme is expected to support these entities in expanding into continental markets under the African Continental Free Trade Area (AfCFTA) by offering transformation funding, risk mitigation instruments, and project finance.
During a recent working visit to Egypt, Dtic Minister Parks Tau led a delegation of senior officials from the dtic and its entities in strategic discussions with Afreximbank representatives. The talks, held in Al Alamein, Egypt, were spearheaded by the bank's President and culminated in the signing of the MoU. Minister Tau expressed that the partnership would enhance South Africa's capacity to support exports, attract investments, and advance economic transformation through improved access to crucial funding.
Minister Tau highlighted that the proposed Country Programme is aligned with South Africa's objectives for structural economic transformation, industrialisation, export development, and regional economic integration. He explained that Afreximbank would deploy a coordinated package of financing, risk mitigation, advisory, and catalytic interventions targeting key industrial sectors such as manufacturing, mineral beneficiation, energy, infrastructure, Special Economic Zones, and industrial parks.
Minister Tau underscored that the programme represents a strategic trade and industrial partnership beyond mere financial support. It aims to position South Africa as a global leader in green hydrogen and critical minerals while promoting inclusive industrialisation and strengthening African value chains. The programme will also work towards deepening AfCFTA integration and building lasting trade infrastructure across the continent.