Afreximbank Launches $14 Bln South Africa Investment Programme

June 29, 2026
By Mintesinot Nigussie

African Export-Import Bank (Afreximbank) and the South African government have agreed on a 14 billion US dollar country programme to finance industrial development, energy infrastructure and trade expansion, deepening the lender's support for one of Africa's largest economies.

The programme, established under a memorandum of understanding signed in Alamein, Egypt, combines financing with technical assistance and advisory services to back South Africa's industrial strategy and strengthen its economic links with the rest of the continent.

The agreement follows South Africa's accession to Afreximbank's Establishment Agreement in February and marks a broad expansion of cooperation between the pan-African lender and Pretoria.

The investment package will support projects ranging from industrial infrastructure and electricity generation to transmission networks and other facilities aimed at improving South Africa's manufacturing competitiveness and boosting intra-African trade under the African Continental Free Trade Area.

As part of the programme, Afreximbank has allocated 3 billion US dollars to an Inclusive Development Support Programme intended to expand access to finance for historically disadvantaged groups. The initiative seeks to increase participation in strategic industries and help address structural constraints in the South African economy.

"This country programme will unlock investment flows into strategic sectors of the South African economy, including processing mineral and agricultural commodities, expanding trade under the African Continental Free Trade Area, promoting South African investment across Africa, and advancing financial and economic inclusion," Afreximbank President George Elombi said.

South Africa's Minister of Trade, Industry and Competition, Mpho Parks Tau, said the agreement would also support implementation of the African Continental Free Trade Area by strengthening regional value chains and addressing barriers that continue to restrict the movement of goods, services and capital across the continent.

The programme also includes plans to revive the South Africa-Africa Trade and Investment Promotion Programme, support the establishment of a South African export-import bank through technical, operational and financial assistance, and provide financing for industrial parks, special economic zones and renewable energy projects.

The partners will also collaborate on mineral beneficiation projects, project preparation, institutional capacity building and advisory services.

The country programme is aligned with South Africa's National Development Plan 2030, its Medium Term Development Plan for 2024 to 2029, the Growth and Inclusion implementation strategy and the country's industrial and trade policies.

Source: FSX Business News