House Chairperson, the ACDP notes the Report of the Portfolio Committee on Trade, Industry and Competition on the request for approval of ratification of the Agreement establishing the African Export-Import Bank (Afreximbank), signed in May 1993. This bank was created to facilitate and expand intra- and extra-African trade, and today counts some 52 African states among its members. It is unfortunate that the name of the bank, in our opinion, is not memorable and is unnecessarily complicated. Nevertheless, its mandate includes financing industrialisation, supporting the African Continental Free Trade Area, and strengthening Africa’s sovereign economic value.
The ACDP recognises the potential benefits of ratification for South Africa, including access to strategic programmes, trade finance, and industrialisation support. However, we must also acknowledge recent concerns.
In June, Fitch Ratings downgraded Afreximbank to BBB-, citing high credit risks, weak risk management, and rising exposure to distressed governments. The African Peer Review Mechanism similarly warned of stress indicators such as rising non-performing loans and sovereign risk concentration.
Nonetheless, the ACDP supports this ratification, but insists that South Africa’s participation must be accompanied by strong oversight, transparency, and risk management safeguards. We cannot afford to expose our economy to instability without clear accountability.
As Kingdom builders, the ACDP asserts that this ratification must be a step towards building Africa’s trade capacity. Simultaneously, it must be matched with prudence and ethical stewardship.
Thank you.
