The African Export-Import Bank (Afreximbank) has announced an $8 billion (R128 billion) investment package aimed at stimulating South Africa’s economy.
Speaking at a recent engagement with the Department of Trade, Industry and Competition (dtic), Afreximbank President Dr George Elombi said the funding aligns with South Africa’s national development priorities and reflects the country’s new status as a full member of the multilateral trade finance institution.
“This country package is aligned with South Africa’s national development priorities and will target key areas,” Elombi said, stressing the bank’s commitment to strengthening local industrialisation and infrastructure.
A major portion of the investment will support value-added industrial activities, with a strong focus on mineral beneficiation and automotive manufacturing. Elombi said the goal is to ensure more economic value is retained within South Africa through local processing of raw materials, helping to create jobs and build long-term wealth.
Infrastructure development is also a central part of the funding strategy, particularly energy generation and transmission.
“We are fighting for the industrial revolution so that our minerals can no longer leave our shores without value being added,” Elombi said, highlighting the importance of a stable power supply to Africa’s industrial future.
Beyond domestic growth, Afreximbank plans to support South Africa’s expansion into regional and continental markets by backing the African Continental Free Trade Area (AfCFTA) and facilitating access to Africa’s growing single market.
To roll out the programme, the bank will work closely with several South African institutions, including the Industrial Development Corporation (IDC), the Development Bank of Southern Africa (DBSA), the Public Investment Corporation (PIC), and commercial banks. This collaborative approach is expected to increase the reach and impact of the funding across multiple sectors.
In addition to the $8 billion commitment, Elombi announced a further $3 billion inclusive financing programme developed in partnership with the dtic and the National Transformation Fund.
The initiative is designed to support small and medium-sized enterprises, as well as marginalised and vulnerable groups within the South African economy.
“This $3 billion inclusive package is to support the resourceful, but marginalised and vulnerable servants of the South African economy,” Elombi said, noting that access to suitable financing is often crucial for the survival of smaller businesses.
Elombi added that Afreximbank’s involvement in South Africa predates its full membership. In recent years, the bank has invested heavily in key sectors, including the launch of a $1 billion South Africa–Africa Trade and Investment Promotion Programme in 2018 to boost intra-African trade.
Other projects include a $300 million Zimbabwe–South Africa water infrastructure initiative and support for the development phase of a $500 million titanium dioxide manufacturing plant in Richards Bay.
Afreximbank currently has a strong pipeline of bankable projects in South Africa spanning energy, transport, healthcare, financial services, manufacturing and mining, with a combined value exceeding $6 billion at various stages of development.
Concluding his remarks, Elombi reaffirmed the bank’s broader continental vision.
“We are here first and foremost as Africans,” he said. “This renewed connection between South Africa and the Bank has the potential to transform not only South Africa, but Africa as a whole.”
