African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises (SMMEs) and Boost Trade
African Development Bank Group (www.afdb.org) and Standard Bank Group (SBG) signed a landmark financial agreement on Monday to enhance funding for small, neutral micro-enterprises (SMMES) and expand trade across Africa.
The agreement includes a R3.6 billion investment in social bonds and a USD 200 million Risk Participation Agreement (RPA) against Standard Bank of South Africa (SBSA). The program strengthens the lending capacity of Standard Banks and ensures more funding from SMME, a key driver of South Africa’s economic growth and job creation.
Social bond investment promotes inclusive economic development, especially for SMME, with turnover less than R300 million and loan sizes less than R40 million. The financing will support up to 4,000 businesses, helping them expand their businesses, create jobs and contribute to economic resilience.
Kenny Fihla, Deputy CEO of Standard Bank Group and CEO of SBSA, welcomed: “This landmark partnership enhances our ability to support SMMES, a backbone of South Africa’s economic qualifiers. With approximately 3.2 million SMMEs accounting for 60% of the job, ensuring access to financing is crucial. The program is aligned with our sustainable financial framework and our commitment to financial inclusion. ”
In addition to social bonds, the $200 million RPA has promoted trade financing across Africa, focusing on low-income countries and transition states. The agreement enables local banks to increase lending by sharing risks, bridging trade financing gaps, and promoting intra-Africa trade.
Leila Mokaddem, Director General of African Development Bank of Southern Africa, highlighted the broader impact: “This collaboration marks an important milestone in our long-term partnership, a testament to our shared commitment to supporting SMMES growth and enhance the shared commitment of trade financing in Africa. Expanding financial inclusion and trade opportunities enable businesses to drive economic transformation and regional integration. Standard Bank Group remains a strategic partner in our shared vision of economic development on the continent.”
The plan is aligned with the African Development Bank’s decade-long strategy (2024-2033), which prioritizes industrialization, regional integration and improves quality of life in Africa. It also supports Standard Bank’s sustainable financial framework, strengthening the commitment of both institutions to promote green and inclusive growth.
“We are proud of this deal, which demonstrates our shared commitment to sustainable financing. By supporting businesses, we create long-term economic opportunities and financial resilience.
Kenny Fihla reiterates the importance of cooperation:
“By providing much-needed capital, we are helping businesses overcome challenges and thrive. This partnership illustrates the power of collaboration in driving meaningful economic and social change in Africa.”
Distributed by Apo Group on behalf of the African Development Bank Group (AFDB).
For media inquiries, please contact:
Natalie Naudé
Communication and external relations department
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About the African Development Bank Group:
The African Development Bank Group is the major development financial institution in Africa. It includes three different entities: the African Development Bank (AFDB), the African Development Foundation (ADF) and the Nigerian Trust Fund (NTF). The bank contributes to the economic development and social progress of its 54 regional member states in 41 African countries with external positions in Japan. For more information: www.afdb.org
