The financing underscores AfDB’s commitment to supporting private-sector growth, financial inclusion, and South Africa’s broader socio-economic transformation. FirstRand Bank is a wholly owned subsidiary of the FirstRand Group, with its commercial banking franchise, FNB, serving millions nationwide.
Three-Part Funding Package to Strengthen MSME Lending
The AfDB package includes:
$200 million line of credit to expand MSME lending across sectors
$100 million gender-focused credit line dedicated to women-led and women-owned MSMEs
$10 million concessional facility from the Agri-Food SME Catalytic Financing Mechanism (ACFM) to support women-owned agribusinesses
Kennedy Mbekeani, AfDB’s Director General for Southern Africa, said the approval reinforces the Bank’s mission to “bolster the private sector and foster inclusive economic growth.” Partnering with FirstRand and FNB, he noted, ensures capital reaches businesses that “drive jobs, innovation, and community development.”
Strong Gender Focus: $110 Million Ring-Fenced for Women Entrepreneurs
More than one-third of the package — $110 million — is earmarked exclusively for women entrepreneurs, directly supporting AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) and the Agri-Food SME Catalytic Financing Mechanism (ACFM).
Women-owned agricultural enterprises, often excluded from traditional banking, will benefit from affordable and accessible credit, helping narrow the gender financing gap in one of Africa’s most underserved segments.
Technical Assistance to Boost Bankability and Credit Access
Beyond financing, the initiative includes technical assistance and performance-based incentives aimed at:
Improving the bankability of women-led businesses
Strengthening FNB’s agriculture-focused financial services
Supporting alternative credit scoring models for underserved borrowers
Ahmed Attout, Director of AfDB’s Financial Sector Development Department, called the approval “a significant milestone” in a partnership focused on “empowering credit-deprived business communities,” particularly women and smallholder farmers.
Supporting South Africa’s Job Creation and Inclusive Growth Goals
Bhulesh Singh, FirstRand Group Treasurer, emphasized that MSMEs play a critical role in economic growth and community upliftment. FNB’s strong record in financing women entrepreneurs and agribusinesses positions it as a key channel for the new funding.
The operation aligns with the African Development Bank’s Four Cardinal Points development priorities and the Ten-Year Strategy (2024–2033), which prioritizes private-sector development, inclusive growth, and gender equality.