AfDB Backs Women Entrepreneurs and MSMEs in South Africa with $310 Million
The African Development Bank (AfDB) Group has approved a $310 million financial package to FirstRand Bank to expand access to finance for micro, small, and medium-sized enterprises (MSMEs), with a particular focus on women-led businesses and agribusinesses in South Africa.
The package consists of three components: a $200 million line of credit for general MSMEs, a $100 million gender-focused line for women-led and women-owned businesses, and a $10 million concessional line from the Agri-Food SME Catalytic Financing Mechanism dedicated to women-owned agricultural SMEs.
“This approval highlights AfDB’s dedication to strengthening the private sector and promoting inclusive growth in South Africa,” said Kennedy Mbekeani, AfDB’s Director General for Southern Africa. “By partnering with FirstRand, particularly FNB, we aim to ensure that MSMEs, especially women-led businesses, can access the capital needed to grow, create jobs, and drive socio-economic development.”
The funding deliberately prioritises gender, with $110 million allocated for women entrepreneurs, aligning with AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) and the Agri-Food SME Catalytic Financing Mechanism (ACFM). Concessional credit is reserved for women-owned agricultural SMEs, addressing the financing gap faced by smallholder farmers despite their significant contribution to the sector.
The operation will be supported by technical assistance and performance-based incentives from ACFM and AFAWA, enhancing the bankability of women-led businesses, supporting FNB’s agriculture offerings, and exploring alternative credit scoring mechanisms.
“This partnership demonstrates a shared commitment to inclusive economic growth and the empowerment of credit-deprived communities,” said Ahmed Attout, Director of AfDB’s Financial Sector Development Department.
Bhulesh Singh, FirstRand Group Treasurer, added, “MSMEs are crucial to South Africa’s economic growth. FNB has a strong record in supporting women-owned businesses and agricultural SMEs, contributing to job creation and community upliftment.”
The initiative aligns with AfDB’s Four Cardinal Points development priorities and supports the Bank’s Ten-Year Strategy (2024–2033), which emphasises inclusive growth, private sector development, and gender equality.
