The African Development Bank Group has cleared a $310 million financial package for FirstRand Bank, one of Africa’s largest financial institutions, in a move aimed at expanding lending to micro, small and medium-sized enterprises (MSMEs) across South Africa, with a particular emphasis on women-led businesses and agribusinesses.
FirstRand Bank operates as a wholly owned subsidiary of the broader FirstRand Group.
The approval marks a significant step in the African Development Bank’s push to advance private-sector-driven growth in South Africa. It also reflects the Bank’s confidence in FNB, FirstRand’s commercial banking arm, to help accelerate the country’s socio-economic development by increasing access to finance for women entrepreneurs and agricultural enterprises.
The $310 million package includes three components: a $200 million credit line to support MSMEs across multiple industries; a dedicated $100 million facility aimed specifically at women-led and women-owned MSMEs; and a $10 million concessional credit line from the Agri-Food SME Catalytic Financing Mechanism (ACFM), ring-fenced for women-owned agricultural small businesses.
“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, African Development Bank’s Director General for Southern Africa. “By channeling these resources through FirstRand and, in particular, its commercial banking franchise, 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.”
A central component of the package is its gender allocation: $110 million, representing more than one-third of the total funding, has been earmarked specifically for women MSMEs. This approach aligns with AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) and ACFM frameworks, which aim to narrow the gender financing gap across the continent.
The concessional funding, targeted at women operating in the agricultural sector, is intended to substantially widen access to credit on affordable terms. Smallholder farmers make up a major share of South Africa’s farming community, yet many remain excluded from mainstream financial services.
Alongside the financing, AfDB will provide technical assistance and Performance-Based Incentives through its AFAWA and ACFM initiatives. These support measures are designed to strengthen the viability of women-owned enterprises, enhance FNB’s agriculture-lending capabilities, and explore alternative methods of credit assessment.
“The approval of this financing package represents a significant milestone and elevation of this impactful partnership between the African Development Bank and FirstRand. It demonstrates both institutions’ shared commitment to driving inclusive economic growth and empowerment of the heavily credit-deprived business communities of South Africa by deliberately channeling credit to women entrepreneurs and smallholder farmers,” said Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank.
Bhulesh Singh, FirstRand Group Treasurer, added: “MSMEs are significant contributors to South Africa’s economic growth, supporting job creation and community upliftment. FirstRand’s commercial banking arm, FNB, has demonstrated a strong track record in providing capacity to women-owned businesses and small businesses in the agricultural sector, which in turn supports community development.”
The initiative aligns with the African Development Bank’s Four Cardinal Points priorities and forms part of the institution’s Ten-Year Strategy (2024–2033), which focuses on inclusive growth, gender equality and private-sector development.
