AfDB Releases $310M to FirstRand to Expand Lending to Small Businesses and Women Entrepreneurs
The African Development Bank Group has approved a 310 million dollar financing package for FirstRand Bank to scale up lending to South Africa’s micro, small and medium sized enterprises, with a strong focus on women-led firms and agribusinesses.
The package is designed to widen access to credit for small businesses that continue to face significant financing gaps and to support efforts toward inclusive economic growth. FirstRand’s commercial banking subsidiary, FNB, will manage the disbursement of the funds.
Support Targeting Small Business Expansion
The financing is structured around three streams. A 200 million dollar facility will support MSMEs across different economic sectors. A second 100 million dollar facility will be dedicated solely to women-led and women-owned enterprises. The final 10 million dollars, provided on concessional terms through the Agri Food SME Catalytic Financing Mechanism, will be reserved for women-owned agribusinesses.
Kennedy Mbekeani, the Bank’s Director General for Southern Africa, said the package reflects AfDB’s commitment to strengthening private enterprises and broadening economic participation.
“The Bank is working with partners that have the capacity and reach to deliver meaningful support to MSMEs, particularly businesses led by women,” he said.
A Strong Push for Gender Inclusion
A notable element of the package is its strong gender focus. More than one third of the total amount is earmarked for women entrepreneurs, in line with AfDB’s broader initiatives such as the Affirmative Finance Action for Women in Africa.
Women smallholder farmers, many of whom struggle to access bank credit, are expected to benefit directly from the concessional financing aimed at supporting agricultural SMEs.
Added Technical Support
The funding will also be complemented with technical assistance to help women-owned enterprises improve their bankability. Additional support will enhance FNB’s capacity in agricultural lending and promote the use of alternative credit assessment tools to reach underserved clients.
Ahmed Attout, Director of the Financial Sector Development Department at the AfDB, said the initiative deepens ongoing cooperation between the Bank and FirstRand and will help channel credit to communities that have long been excluded from formal financing.
Bhulesh Singh, FirstRand Group Treasurer, welcomed the support, noting the important role MSMEs play in job creation and local economic development.
Backing AfDB’s Development Priorities
The operation aligns with the African Development Bank’s long-term development goals, including its priorities on private sector development, gender equality and inclusive growth, as outlined in its Ten Year Strategy.
