FirstRand Bank, a wholly owned subsidiary of the FirstRand Group, has received a major financial boost as the African Development Bank Group (www.AfDB.org) approved a $310 million package to expand lending to MSMEs, especially women-led ventures and agribusinesses in South Africa. This funding also strengthens AfDB’s ongoing focus on empower women financing, development projects africa, and female entrepreneurship funding across the continent.
Strong Boost for Women Entrepreneurs and Small Businesses
The package includes three targeted components designed to scale support for small enterprises and women-led businesses:
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$200 million line of credit to expand MSME lending across multiple sectors
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$100 million gender-focused credit line dedicated to women-led and women-owned MSMEs
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$10 million concessional facility from the Agri-Food SME Catalytic Financing Mechanism for women-owned agricultural SMEs
This combined support reflects AfDB’s confidence in FirstRand Bank’s capacity to drive inclusive growth. It especially helps advance development projects africa and significantly widens access to capital for women entrepreneurs and rural agribusinesses.
Gender-Focused Financing at the Center
A notable portion — $110 million, more than one-third of the total package — is ring-fenced for women-owned MSMEs. This aligns with AfDB’s AFAWA (Affirmative Finance Action for Women in Africa) and ACFM initiatives, both of which directly aim to close the gender financing gap. These programs also strengthen long-term female entrepreneurship funding priorities across Africa.
“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’s Director General for Southern Africa. He emphasized that the partnership with FirstRand and its commercial franchise, FNB, ensures broad outreach to MSMEs — particularly women who struggle most to access credit.
Additional Technical Support to Strengthen Lending
Beyond financing, AfDB will provide technical assistance and performance-based incentives through AFAWA and ACFM. These efforts aim to:
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Improve the bankability of women-led SMEs
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Strengthen FNB’s agriculture-focused offerings
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Test alternative credit scoring models to support underserved borrowers
The concessional funding is specifically reserved for women farmers in South Africa — a group often excluded from formal credit systems despite forming a large share of the agricultural workforce.
“MSMEs are significant contributors to South Africa’s economic growth… FNB has shown strong capacity in supporting women-owned businesses and agricultural enterprises,” said Bhulesh Singh, FirstRand Group Treasurer.
Ahmed Attout, Director of AfDB’s Financial Sector Development Department, noted that the package marks an important milestone in AfDB’s mission to strengthen empower women financing and uplift credit-deprived communities.
Supporting Africa’s Development Priorities
This initiative directly supports AfDB’s Four Cardinal Points and aligns with the Bank’s Ten-Year Strategy (2024–2033), which emphasizes gender equality, inclusive growth, and private-sector resilience. Through this partnership, AfDB continues reinforcing development projects africa and widening pathways for female entrepreneurship funding across the region.
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This story was first reported by APO Group. Read the full article here.
