from ALEXIS DOUMBIA in Abidjan, Ivory Coast
Ivory Coast Bureau
ABIDJAN, (CAJ News) – THE Board of Directors of the African Development Bank Group has approved a $310 million financial package for FirstRand Bank, one of Africa’s largest financial institutions, to expand access to finance for micro, small, and medium enterprises (MSMEs) in South Africa. A significant portion of this support targets women-led businesses and agricultural enterprises.
The package comprises three components: a $200 million line of credit for MSMEs across multiple sectors; a $100 million gender-focused facility dedicated to women-owned MSMEs; and a $10 million concessional line from the Agri-Food SME Catalytic Financing Mechanism aimed at women-owned agribusinesses.
In total, $110 million—more than one-third of the package—is earmarked specifically for women entrepreneurs, aligning with the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative.
Kennedy Mbekeani, Director General for Southern Africa at the African Development Bank, said the approval underscores the Bank’s commitment to strengthening the private sector and advancing inclusive economic growth.
“By channeling these resources through FirstRand and its commercial banking franchise, FNB, we are ensuring that MSMEs—particularly those led by women—gain access to the capital needed to grow, create jobs, and support South Africa’s economic transformation,” he said.
The concessional funding will expand affordable credit to women-led agricultural enterprises, a sector where smallholder farmers remain largely excluded from traditional financing despite their critical role in national food production.
The package will be reinforced by technical assistance and performance-based incentives under the AFAWA and ACFM frameworks. These interventions will bolster the bankability of women-owned enterprises, strengthen FNB’s agricultural finance capabilities, and promote alternative credit-scoring models.
Ahmed Attout, Director of the Bank’s Financial Sector Development Department, said the partnership marks “a significant milestone” in efforts to close South Africa’s credit gap. FirstRand Group Treasurer Bhulesh Singh noted that supporting MSMEs is essential for job creation and community development.
This operation aligns with the Bank’s Four Cardinal Points and its Ten-Year Strategy (2024–2033), prioritizing inclusive growth, private-sector development, and gender equality.
– CAJ News