The Coega Development Corporation and Standard Bank have signed an agreement in Port Elizabeth, South African state news agency BuaNews said on Friday.

The agreement binds both parties to assist black economic empowerment companies that are awarded contracts by the CDC to qualify for financial assistance through the bank.

"The basis of this agreement is the leverage both of our skills and resources to develop an appropriate and co-ordinated strategy in developing BEE opportunities for the benefit of those who were historically deprived of such opportunities," said CDC's acting Chief Executive Khwezi Tiya.

Standard Bank had undertaken to grant the loan facilities to BEE companies that comply with the bank's SMME lending criteria, and appoint staff to specifically evaluate and process applications from this sector while the CDC would provide the necessary support to the companies and share the risk with the bank, BuaNews said.

The two parties would set up a joint committee to monitor the flow of BEE transactions under the agreement, the service levels of both parties and co- ordinate the implementation of the agreement.