With 90% of tariff lines liberalized since 2025, South Africa’s economy is leveraging the strength of Afreximbank to make the most of the African Continental Free Trade Area (AfCFTA). With regional growth jumping by 12.4% and a fast-accelerating automotive sector, South Africa is reshaping its industrial policy to match a 3.4 trillion dollars market. This strategic shift marks the advent of a new era in which African finance becomes the direct fuel of sovereign and shared industrialization.
As the continent’s leading industrialized economy, South Africa is reaffirming its weight in African trade. In 2023, it accounted for 29.7% of intra-African exports, totaling 547 billion rand, while its foreign trade represented 65.7% of GDP. The operational launch of the AfCFTA is acting as an accelerator. The continental market, with 1.4 billion consumers and a combined GDP of 3.4 trillion dollars, is redefining trade priorities. Between January 2024 and March 2025, South Africa’s preferential exports reached 820 million rand, compared to 610 million rand in imports. In this context, the Minister of Trade, Industry and Competition frames South Africa’s membership in Afreximbank within a clearly defined institutional approach.
« The appetite that Dr. Elombi had to work with us to get to the implementation of the country program. We explained that of course what we are doing is to convert the shares of ECIC into sovereign shareholding, but part of the ambition is to either restructure the ECIC and or establish a local Ex-Im Bank or national credit agency that would be able to support businesses either with ECIC or complementing the ECIC. »Parks Tau, Minister of Trade, Industry and Competition – South Africa
In 2024, intra-African trade increased by 12.4% to reach 220 billion Euros, placing Africa among the few regions above the global average. South Africa is positioning itself as one of the drivers of this momentum, particularly in the automotive sector. South African exports to the continent reached 2.6 billion rand in 2024, up 12.4%, alongside Morocco. The gradual removal of tariffs under the AfCFTA opens up immediate growth potential by 2026.
« South Africa’s accession to Afrexim Bank positions the continent’s most advanced economy to diversify export markets, strengthen regional production networks and support exporters, investors and SMEs in engaging the continental market more effectively. Given the current adverse global conditions, it is patently obvious that Africa must rely on herself for financing her own investment and industrial development. The AFCFTA Secretariat looks forward to deepening collaboration with South Africa and Afrexim Bank as we work together toward an integrated, industrialized, and prosperous continent. »Wamkele Mene, Secretary-General of the AfCFTA – South Africa
In the medium term, intra-African trade could increase by 50% over the next decade, while continental growth is projected at 3.8% in 2025 and 4.1% in 2026. For Pretoria, Afreximbank is becoming the financial arm of this trajectory, securing industrialization and supporting regional expansion.
