AFREXIMBANK has arranged an $8bn financing package for new member South Africa, prioritising mineral processing alongside automotive manufacturing and industrial development, said Reuters citing the bank at a presentation in Johannesburg on Wednesday.
South Africa was barred from full membership when Afreximbank launched in 1993 due to apartheid rule, but last year moved to Class A shareholder status, the newswire said in its coverage of the event.
“We have put together an important package of eight billion United States dollars for South Africa,” Afreximbank president George Elombi said at a ceremony. “In particular we will prioritise mineral processing, the expansion of automotive manufacturing and the expansion of industrial parks and specialised zones.”
The membership provides Africa’s most industrialised economy with new trade finance options as it navigates a tariff dispute with Washington. President Donald Trump imposed a 30% levy on South African exports in August, the steepest rate in sub-Saharan Africa.
President Cyril Ramaphosa said deeper Afreximbank ties demonstrated commitment to “African industrial development and to deepening trade, investment and development across the continent”.
The announcement follows Fitch’s decision last month to downgrade Afreximbank to junk status and cease future credit ratings. Elombi defended the institution as “extremely solid”, adding that investing remained the bank’s core objective.
