Trade, Industry and Competition Minister Parks Tau has signed an agreement with multilateral financial institution the African Export-Import Bank (Afreximbank) for South African businesses, State-owned enterprises and financial institutions to access trade and industrial finance.

The $14-billion Country Programme also provides funding to support transformation, risk coverage and project funding, as well as funding to expand into continental markets under the African Continental Free Trade Area (AfCFTA).

Afreximbank aims to facilitate, promote and expand intra- and extra-African trade. South Africa joined Afreximbank as a full, sovereign Class A shareholder in April.

The partnership between the dtic and Afreximbank enables South Africa to better support exports, investments and transformation by ensuing that local firms have access to expanded funding, says Tau.

“The proposed Country Programme is designed to support South Africa’s objectives linked to structural economic transformation, industrialisation, export development, and regional economic integration objectives.”

Under this 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 developing intra-African trade and AfCFTA participation, among others, he says.

Further, the Country Programme is a strategic trade and industrial partnership that will enable South Africa to achieve key economic transformation objectives, such as boosting the country's position in green hydrogen and critical minerals.

The programme will also assist in efforts to redistribute economic power through inclusive industrialisation, strengthen African value chains and deepen AfCFTA integration, building lasting trade infrastructure, says Tau.