African Development Bank And Standard Bank Unite To Support SMMEs And Boost Trade
African Development Bank and Standard Bank jointly support SMME and promote trade
The African Development Bank Group and the Standard Bank Group (SBG) have signed landmark financial agreements to enhance funding for small, neutral micro-enterprises (SMMEs) while expanding 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 SMME, a backbone of the South African economy. With approximately 3.2 million SMMEs representing 60% of the work, ensuring access to financing is crucial. The program is with our sustainable finance The framework is aligned with 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 finance 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.
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.”
