Afreximbank’s $11bn bet on SA signals new trade order
Pauline Dikuelo | Wednesday April 22, 2026 06:00
South Africa’s membership is expected to influence economies far beyond the Southern African region, extending into East, West, and North Africa.
Afreximbank’s headline commitment of $11 billion not only aligns with South Africa’s National Development Plan 2030 but also reinforces the country’s commitment to advancing African industrial development.
“This partnership marks a pivotal step in redefining Africa’s position in global trade and strengthening intra-African economic resilience,” Chairperson of the Portfolio Committee on Trade, Industry and Competition Mzwandile Masina, said.
The package includes an $8 billion country programme focused on energy, mineral processing, and infrastructure, as well as a $3 billion inclusive financing programme aimed at supporting small and medium enterprises (SME) and driving economic transformation, critical pillars for South Africa’s growth.
Building on existing initiatives, South Africa is set to ramp up investment in mineral processing, automotive manufacturing expansion, and industrial parks and special economic zones to retain value, create jobs, and boost government revenue. At a time when global demand for critical minerals is surging, rising by nearly 30% in 2024 alone, South Africa is uniquely positioned to expand its industrial base.
The country accounts for about 40% of mining sales, holds a 59% share of global production in key minerals, and boasts vast platinum group metal (PGM) reserves.
“South Africa has a unique opportunity to shift from exporting raw materials to becoming a global hub for value-added manufacturing,” Masina highlighted.
Instead of exporting raw minerals such as iron ore and importing finished goods like batteries at a premium, the country is now positioned to process, refine, and manufacture more domestically, capturing greater value locally.
This shift is expected to strengthen South Africa’s access to international trade frameworks such as the African Growth and Opportunity Act (AGOA), enabling expanded market access whilst maintaining Africa’s economic agency.
In parallel, the country is expected to intensify investment in critical infrastructure, particularly in energy generation and transmission. This builds on existing momentum, including R2.36 billion in support for Eskom to sustain power supply and $165 million toward a $500 million Transnet facility aimed at strengthening logistics capacity.
“These investments are designed to eliminate long-standing bottlenecks in energy and transport, which have constrained industrial growth for years,” Masina said.
Afreximbank has also supported industrial value addition through initiatives such as a $3.5 million Project Preparation Facility, which funded feasibility studies for an $849 million titanium dioxide (TiO₂) pigment plant at the Richards Bay Industrial Development Zone. The plant is expected to have a production capacity of 80,000 metric tonnes per annum.
Together, these interventions aim to ensure reliable power, efficient logistics, and fully operational industrial value chains capable of unlocking South Africa’s beneficiation and manufacturing potential.
In 2024, Afreximbank and the Government of South Africa, through Infrastructure South Africa (ISA), signed a $20 million joint project preparation facility framework agreement. This agreement is expected to unlock up to $750 million in high-quality, bankable projects across key sectors, including energy, transport and logistics, and digital infrastructure.
For the private sector, which accounts for over 70% of jobs in South Africa, the partnership is expected to accelerate private sector-led transformation. Strategic collaborations with leading financial institutions will leverage private capital and expertise to catalyse reforms and unlock large-scale investments.
“Mobilising private capital is essential to achieving sustainable and inclusive growth across the continent,” Masina noted.
Efforts are also underway to strengthen domestic institutional capacity, particularly by transforming South Africa’s Export Credit Insurance Corporation (ECIC) into a fully-fledged Eximbank. This transition will enable ECIC to underwrite industrial development, economic diversification, and export growth more effectively.
Afreximbank has further launched a $1 billion South Africa-Africa Trade and Investment Promotion Programme (SATIPP) in partnership with ECIC. The initiative aims to boost trade and investment flows between South Africa and other African countries. It has already supported major projects, including the $297 million Zim borders project and the participation of South African banks in the $24 billion Mozambique LNG project. Given its success, Afreximbank is considering expanding the programme to $3 billion.
Lastly, the $3 billion inclusive financing package targets SMEs, which contribute between 19% and 34% of GDP and account for 60% of formal employment. The programme will provide tailored trade finance for exporters, working capital for processors, and technology upgrades to help suppliers scale.
This builds on Afreximbank’s track record since 2023, which includes over 296,000 SMEs registered, more than 155,000 jobs created, and over 6,500 businesses trained, of which 69% are youth-led and 78% are women-led enterprises.
“The focus on SMEs ensures that growth is not only robust but also inclusive, empowering historically marginalised groups,” Masina added.
Ultimately, South Africa’s accession strengthens Afreximbank’s footprint in one of the continent’s most sophisticated financial and industrial markets. It anchors Southern Africa more firmly within the continental trade framework and aligns with the Bank’s core mandate of facilitating and expanding both intra-African and extra-African trade while accelerating industrialisation.