The African Development Bank Group has approved a 310 million dollar financial package for FirstRand Bank to expand lending to micro, small and medium sized enterprises in South Africa, with a strong focus on women-led businesses and agribusinesses.
The support underscores the Bank’s commitment to private sector growth and inclusive economic transformation. FirstRand Bank is a wholly owned subsidiary of the FirstRand Group, and its commercial banking arm, FNB, will play a central role in delivering the funds.
According to the African Development Bank, the financing aims to ease long-standing credit constraints for MSMEs, especially the country’s women entrepreneurs and smallholder farmers.
Three Financing Streams Target MSME Growth
The package includes a 200 million dollar line of credit to be on-lent to MSMEs in various sectors, a 100 million dollar gender-focused credit line dedicated to women-led and women-owned businesses, and a 10 million dollar concessional facility under the Agri Food SME Catalytic Financing Mechanism for women-owned agricultural enterprises.
Kennedy Mbekeani, the Bank’s Director General for Southern Africa, said the approval reflects confidence in FirstRand and its ability to support inclusive growth.
“By channeling these resources through FirstRand and FNB, we are working with trusted partners with extensive reach to ensure that MSMEs, particularly those led by women, have access to the capital they need to grow, create jobs and contribute to South Africa’s economic development,” he said.
Strong Gender Focus Aligned with AFAWA
More than one third of the total package, 110 million dollars, is earmarked specifically for women entrepreneurs. The design aligns with the African Development Bank’s Affirmative Finance Action for Women in Africa initiative and the Agri Food SME Catalytic Financing Mechanism, both of which aim to close Africa’s gender financing gap.
The concessional facility will increase affordable lending to women-owned agribusinesses, a group that forms a significant share of South Africa’s farming population but remains largely excluded from bank credit.
Technical Assistance and Incentives Included
The financing will be supported by technical assistance and performance based incentives to strengthen the capacity of women-owned enterprises and enhance FNB’s agriculture financing. Support will also explore alternative credit scoring methods to reach underserved groups.
Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank, said the package deepens a valuable partnership.
“It demonstrates both institutions’ shared commitment to driving inclusive economic growth and empowering credit-deprived business communities in South Africa by deliberately channeling credit to women entrepreneurs and smallholder farmers,” he said.
Bhulesh Singh, Group Treasurer of FirstRand, said MSMEs remain vital to South Africa’s development.
“MSMEs are significant contributors to South Africa’s economic growth, supporting job creation and community upliftment. FNB has a strong track record in providing capacity to women-owned businesses and small businesses in the agricultural sector,” he said.
Alignment with AfDB Development Priorities
The operation aligns with the African Development Bank’s Four Cardinal Points development priorities and supports the Bank’s Ten Year Strategy which emphasises inclusive growth, private sector development and gender equality.
