South Africa secures cabinet approval to join Afreximbank as a Class A member, aiming for expanded trade finance access and governance influence.
Cabinet Approval Marks Key Step Toward Membership
South Africa is advancing toward becoming a full sovereign member of the African Export-Import Bank (Afreximbank – site) after its cabinet approved the plan, the government announced on Thursday. Afreximbank, the continent’s leading provider of trade finance, holds a balance sheet of $35 billion.
Full membership would expand South Africa’s access to trade and investment products, a move seen as vital as the country looks for alternative export markets amid heightened tariff tensions with the United States.
Governance Role Through Class A Shareholding
The government confirmed it would obtain a Class A shareholding, which would grant South Africa “influence over its strategic direction, structure and leadership appointments.” Class A shareholders include African governments and regional multilateral financial institutions, such as the African Development Bank, holding more than 50% of the bank’s shares across 53 member states.
The Cairo-based bank has recently been at the center of a debate over whether loans to African countries should be restructured in the event of sovereign defaults.
Afreximbank has not commented on the cabinet’s decision.
Historical Context and Previous Stake
South Africa was unable to join Afreximbank as a founding sovereign member when it was established in 1993 due to its isolation under apartheid. The country acquired an unspecified shareholding in 2017 but did not formally accede to the treaty that created the bank.
This latest step signals Pretoria’s intention to deepen financial integration across the continent while strengthening its role within the institution’s governance.
Next Steps and Timeline
The government has not disclosed a timeline for when full membership will be finalized. Afreximbank’s remaining shareholding categories include Class B shareholders—commercial banks and private equity funds—and Class C investors, which consist of foreign entities and individuals holding depositary receipts listed on the Stock Exchange of Mauritius.
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