The African Development Bank Group (AfDB) has approved a major $310 million financial package for FirstRand Bank, designed to expand access to finance for micro, small, and medium-sized enterprises (MSMEs) in South Africa, with a strong focus on women-led businesses and agribusinesses.
In its announcement, the Bank said the financing demonstrates its commitment to private-sector-driven growth and reflects its confidence in FNB, FirstRand’s commercial banking franchise, to drive socio-economic transformation by empowering women entrepreneurs and agricultural businesses across the country.
The package consists of three key components:
- $200 million line of credit for MSMEs across sectors,
- $100 million gender-focused line of credit for women-owned MSMEs, and
- $10 million concessional line of credit from the Agri-Food SME Catalytic Financing Mechanism specifically targeting women-owned agribusinesses.
“This approval highlights the African Development Bank’s dedication to bolstering the private sector and fostering inclusive economic growth in South Africa,” said Kennedy Mbekeani, AfDB Director General for Southern Africa. “By channelling resources through FirstRand and particularly FNB, we are ensuring that MSMEs, especially those led by women, have access to the capital they need to grow, create jobs and contribute to South Africa’s development.”
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A standout feature of the approval is its gender-intentional design, with $110 million, over one-third of the package, earmarked exclusively for women MSMEs. This supports the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative and the Agri-Food SME Catalytic Financing Mechanism (ACFM), both aimed at narrowing Africa’s gender financing gap.
The concessional funding is ring-fenced for women-owned agribusinesses, addressing one of South Africa’s long-standing challenges: the limited access to affordable credit for smallholder farmers, despite their significant role in the country’s food system.
Complementing the financial package, AfDB will provide technical assistance and performance-based incentives, aimed at strengthening the bankability of women-led enterprises, supporting FNB’s agriculture offerings, and exploring alternative credit scoring models to broaden inclusion.
“The approval of this financing package represents a significant milestone in our partnership,” said Ahmed Attout, Director of the Financial Sector Development Department at AfDB. “It reflects our shared commitment to driving inclusive economic growth by deliberately channelling credit to women entrepreneurs and smallholder farmers.”
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Bhulesh Singh, FirstRand Group Treasurer, added: “MSMEs are crucial drivers of South Africa’s economic growth. FNB has a strong track record in supporting women-owned businesses and small enterprises in agriculture, which in turn strengthens communities.”
This operation aligns with AfDB’s Four Cardinal Points and its Ten-Year Strategy (2024-2033), focusing on inclusive growth, private sector development,and gender equality.
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