Government is deepening its efforts to build State capacity and unlock development finance to drive industrialisation after securing access to a US$14 billion funding programme through Afreximbank.
The Department of Trade, Industry and Competition (the dtic) and the African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MoU) that unlocks access to a massive US$14 billion Country Programme.
Dtic Minister Parks Tau recently concluded a working visit to Egypt where the agreement was signed, marking a significant milestone following South Africa's decision in April this year to join Afreximbank as a full sovereign Class A shareholder.
Headquartered in Egypt, Afreximbank is a multilateral financial institution established to facilitate, promote and expand both intra-African and extra-African trade.
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The newly announced Country Programme will provide South African businesses, State-owned enterprises and financial institutions with access to trade and industrial finance, transformation funding, risk mitigation instruments and project finance.
The funding is also expected to support South African companies seeking to expand into continental markets under the African Continental Free Trade Area (AfCFTA).
Tau led a delegation of senior officials from the dtic and its entities to strategic engagements with Afreximbank representatives in Al Alamein, Egypt, led by the bank's President, culminating in the signing of the MoU.
He said the partnership will strengthen South Africa's ability to support exports, attract investment and advance economic transformation by improving access to critical funding.
"The proposed Country Programme is designed to support South Africa's objectives linked to structural economic transformation, industrialisation, export development and regional economic integration.
"Under the proposed multi-year programme, Afreximbank will deploy a coordinated package of financing, risk mitigation, advisory and catalytic interventions targeting priority industrial sectors such as manufacturing, mineral beneficiation, energy and infrastructure, Special Economic Zones and industrial parks, as well as the development of intra-African trade and participation in the AfCFTA," Tau said.
He emphasised that the programme represents far more than a financing package.
"It is a strategic trade and industrial partnership that will support South Africa's key economic transformation goals, including positioning the country as a global leader in green hydrogen and critical minerals.
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"It will also support efforts to redistribute economic power through inclusive industrialisation, strengthen African value chains and deepen AfCFTA integration, helping build lasting trade infrastructure across the continent," he said.
