Faith Nyasuguta
South Africa is on the verge of becoming a full sovereign member of the African Export-Import Bank (Afreximbank), following cabinet approval of the plan. Afreximbank, widely regarded as Africa’s leading trade finance institution, holds a $35 billion balance sheet and provides a range of products aimed at boosting trade and investment across the continent.
The government confirmed that full membership would secure Africa’s most industrialised economy expanded access to Afreximbank’s trade and investment tools. This is expected to strengthen South Africa’s ability to grow its export markets, especially as the country looks for alternative destinations in response to recent tariff disputes with the United States.
Full membership would give South Africa a Class A shareholding, reserved for African governments and regional financial institutions. This position would allow Pretoria greater influence over the bank’s governance – from shaping its strategic direction and structure to having a say in leadership appointments. Such a stake is also symbolic, representing a commitment to deeper economic cooperation within Africa.
Afreximbank, established in 1993, has 53 member states and four shareholding classes. Class A shareholders, which include African governments and the African Development Bank, collectively control more than half of the bank’s shares. Class B members include commercial banks and private equity funds, while Class C investors consist of foreign entities and individuals. There is also a Class D, which allows certain special investors.
Interestingly, South Africa could not join as a founding member at the bank’s inception due to its isolation during apartheid. It later acquired a minority stake in 2017 but never formally joined the treaty that created the bank. The latest cabinet approval marks a shift, with Pretoria seeking stronger continental financial integration and more say in shaping Africa’s trade agenda.
Afreximbank has recently been in the spotlight over debates on whether loans to African nations should be restructured in cases of sovereign default. Despite such discussions, South Africa views membership as an opportunity to enhance its role in African trade, diversify export markets, and promote regional industrial growth.
No official timeline has been given for the finalisation of its membership, but once completed, South Africa will join the core group steering the bank’s operations and future direction.
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