South Africa is a step closer to becoming a full sovereign member of the African Export-Import Bank (Afreximbank) after its cabinet approved the plan, the government announced on Thursday.
Full membership in the Cairo-based lender whose balance sheet stands at $35 billion would give Africa’s most industrialized economy access to new trade and investment products. The move comes as South Africa seeks fresh export markets amid a tariff dispute with the United States.
The government said it will secure a Class A shareholding, granting it greater influence over Afreximbank’s governance, strategic direction, structure, and leadership appointments. No timeline was given for when membership will be finalized.
South Africa could not join as a state member when the bank was established in 1993 due to apartheid-era restrictions. It acquired an undisclosed shareholding in 2017 without signing the founding treaty.
Afreximbank, which serves 53 member states, has four shareholder categories. Class A shares held by African governments and regional financial institutions such as the African Development Bank make up more than half of the bank’s ownership. The remaining shares are held by commercial banks, private funds, overseas investors, and general investors via depositary receipts on the Stock Exchange of Mauritius.
The bank has recently faced debates over whether to restructure loans to African countries in cases of default. Afreximbank has yet to comment on South Africa’s cabinet approval.
