PRETORIA, South Africa, 13 November 2025 — The Board of Directors of the African Development Bank Group (www.AfDB.org) has approved a $310 million financial package to FirstRand Bank, one of the largest financial institutions in Africa. This support will significantly increase access to finance for micro, small, and medium-sized business enterprises (MSMEs), with a particular focus on women-led businesses and agribusinesses in South Africa.
FirstRand Bank is a wholly owned subsidiary of the FirstRand Group.
This comprehensive financing package demonstrates the African Development Bank’s continued support for private-sector-led growth and its confidence in FNB, FirstRand’s leading commercial banking franchise, to support South Africa’s socio-economic transformation and inclusive growth, particularly through empowering women entrepreneurs and agricultural businesses nationwide.
The package comprises three strategic components: a $200 million line of credit for on-lending to MSMEs across various sectors; a $100 million gender-focused line of credit dedicated to women-led and women-owned MSMEs; and a $10 million concessional line of credit from the Agri-Food SME Catalytic Financing Mechanism targeting women-owned agricultural small business enterprises.
“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 defining feature of this approval is its strong gender focus: $110 million — more than one-third of the total financial package – is explicitly earmarked for women MSMEs.
This intentional gender approach aligns with AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) and the Agri-Food SME Catalytic Financing Mechanism (ACFM) initiatives, demonstrating AfDB’s commitment to closing the gender financing gap in Africa.
The concessional funding is, by design, ring-fenced for women-owned small business enterprises operating in South Africa’s agriculture sector to significantly increase their access to affordable credit on favorable terms. Most smallholder farmers in South Africa remain excluded from accessing bank credit, yet they make up a significant proportion of the farming population.
Technical Assistance and Performance-Based Incentives
The Financial Package will be complemented by technical assistance and Performance-Based Incentives from ACFM and AFAWA initiatives of the African Development Bank.
The Technical assistance packages are intended to:
- enhance the bankability of women-led/owned small business enterprises;
- support FNB’s (FirstRand’s commercial banking franchise) agriculture offerings;
- explore alternative credit scoring;
“The approval of this financing package represents a significant milestone and elevation of this impactful partnership between the African Development Bank and FirstRand.” stated Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank.
“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”, Ahmed Attout 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,” said Bhulesh Singh, FirstRand Group Treasurer.
This operation aligns with the African Development Bank’s Four Cardinal Points development priorities. It also supports the Bank’s Ten-Year Strategy (2024-2033), which focuses on inclusive growth, private sector development, and gender equality.
