Afreximbank and the Industrial Development Corporation (IDC) of South Africa have signed a new partnership that is expected to unlock significant investment for industries that drive economic growth and regional trade. Through an US$8 billion financing programme, the two institutions will support projects across key sectors while helping businesses expand production, strengthen value chains and increase trade within Africa, reinforcing South Africa’s industrial development objectives.
The partnership is expected to create new opportunities for businesses by improving access to finance, supporting large-scale industrial projects and helping South African companies expand into African markets. It also reinforces efforts to increase intra-African trade under the African Continental Free Trade Area (AfCFTA), while contributing to long-term economic growth and industrial competitiveness.
The three-year Memorandum of Understanding (MoU) builds on the recently announced US$14 billion Country Programme between Afreximbank and the South African Government, which is designed to support the country’s industrial, trade and development priorities.
Partnership to unlock investment and industrial growth
Under the renewable three-year agreement, Afreximbank and the IDC will work together to identify, develop and finance projects with strong commercial and developmental potential. The institutions will jointly originate and monitor investment opportunities while mobilising co-financing and advisory solutions to accelerate the implementation of strategic projects.
The partnership covers more than 13 priority sectors, including manufacturing, agriculture and agro-processing, mining, renewable energy and infrastructure. These industries are expected to play a key role in strengthening South Africa’s productive capacity while creating stronger links with regional markets.
Speaking during the signing, Afreximbank President and Chairman of the Board of Directors Dr George Elombi said, “This strategic partnership with IDC reinforces Afreximbank’s commitment to advancing Africa’s industrialisation and trade agenda.” He added that, “By combining our expertise, resources and networks, Afreximbank and the IDC will unlock new opportunities for financing, investment and capacity building across the continent.”
He said the collaboration is expected to support critical sectors while driving sustainable economic growth. “Ultimately, this partnership represents a major step toward achieving the objectives of the AfCFTA. Together, we are building a more resilient and competitive African economy,” Dr Elombi said.
The agreement also establishes a preferred financial partnership under which both institutions will prioritise each other in eligible transactions. Their cooperation will extend beyond financing to include project finance, co-financing, advisory services, research, capacity building, staff exchanges and knowledge sharing.
As part of the arrangement, Afreximbank will deploy its digital trade platforms, including the Pan-African Payment and Settlement System (PAPSS), MANSA and the Africa Trade Gateway. These platforms are expected to improve cross-border payment processes, reduce trade barriers and make it easier for businesses across Africa to trade more efficiently.
Strengthening South Africa’s role in regional trade
IDC Chief Executive Officer Mmakgoshi Lekhethe said the MoU provides a strong foundation for the two institutions to work together on projects that can deliver lasting economic value.
“This MoU creates a practical framework through which the IDC and Afreximbank can combine their respective strengths to identify and finance high-impact projects,” she said.
Lekhethe noted that “The IDC brings extensive local market knowledge and experience in supporting South African businesses, while Afreximbank provides significant trade finance capabilities, continental reach and access to innovative trade-enabling platforms.”
The partnership builds on South Africa’s accession to the Establishment Agreement of Afreximbank in February 2026 and further strengthens cooperation between the country and the continental financial institution.
Looking ahead, Lekhethe said, “Through this collaboration, Afreximbank and the IDC will support South Africa’s industrial competitiveness while strengthening the country’s trade and investment connections with the rest of Africa under the AfCFTA.”
