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The African Export-Import Bank has agreed to lend South Africa an initial $11 billion (R175.6?billion) to ease funding pressures, support infrastructure projects and Black-owned businesses.<\/p>\n
As much as $8 billion will be directed to priority areas including energy, minerals processing and critical infrastructure, Afreximbank President George Elombi said at the signing of the support package in Johannesburg on Wednesday.<\/p>\n
Read: Investors pile into SA\u2019s first infrastructure bond<\/p>\n
The lender also plans to invest in the expansion of automotive manufacturing and the development of industrial parks to broaden South Africa\u2019s revenue base, he added.<\/p>\n
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\nSouth Africa has made infrastructure a cornerstone of its economic policy as it seeks to revive growth and create jobs after more than a decade of stagnation.<\/p>\n<\/blockquote>\n
The signing follows lawmakers\u2019 approval last October for South Africa to join Afreximbank as a Class A shareholder, granting it full sovereign membership and a greater role in the lender\u2019s governance.<\/p>\n
It\u2019s also expected to improve access to competitive trade finance for the country\u2019s companies, banks and state-owned firms. The move will further expand funding for trade under the African Continental Free Trade Area.<\/p>\n
Read:<\/p>\n
SA needs fair and inclusive trade for growth and jobs<\/div>\n\u201cFor South Africa, the decision to accede to Afreximbank represents a strategic alignment: we seek to contribute to an Africa that prioritises intra-continental trade and builds its own industrial base and capacity,\u201d President Cyril Ramaphosa said.<\/p>\n
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The programme will also inject capital into South Africa\u2019s transformation initiatives, Ramaphosa said, adding that one immediate priority would be \u201cto give muscle\u201d to a Transformation Fund that\u2019s been created to support Black-owned and managed businesses.<\/p>\n
Listen\/read:<\/p>\n
South Africa nears new R100bn black business-support fund<\/div>\nNew BEE incentives as transformation fund is revamped<\/div>\nAs much as $3 billion will go toward supporting the R100-billion ($6.3 billion) fund, Ramaphosa said.<\/p>\n
\u00a9\u00a02026\u00a0Bloomberg<\/p>\n
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