AfDB Grants $30M to Boost MSMEs & Women-led Businesses

• AfDB​‍​‌‍​‍‌ approves $310 million investment through FirstRand to back MSMEs and women-led companies.
• Program comprises a $200 million MSME credit line, $100 million for women entrepreneurs and $10 million for agribusiness.

The​‍​‌‍​‍‌ African Development Bank (AfDB) has approved a $310 million (R5.6 billion) financial package to FirstRand Bank in order to increase the availability of finance to micro, small and medium enterprises (MSMEs), indigenously women-led businesses and agribusinesses in South Africa.

According to the bank, this assistance, which was made public on Thursday, is a manifestation of the bank's sustained commitment to private-sector-led growth and its trust in FirstRand’s commercial arm, FNB, to be the vehicle of inclusive growth and socio-economic transformation in South ​‍​‌‍​‍‌Africa.

The​‍​‌‍​‍‌ comprehensive package is mainly composed of three elements: a $200 million line of credit to promote MSMEs in different sectors; a $100 million gender-focused line of credit for women-owned or women-led MSMEs; and a $10 million concessional loan under the Agri-Food SME Catalytic Financing Mechanism (ACFM) aimed at the women-owned ​‍​‌‍​‍‌agribusinesses.

AfDB’s director general for Southern Africa, Kennedy Mbekeani said in a statement, “This approval highlights the African Development Bank's dedication to bolstering the private sector and fostering inclusive economic growth in South Africa.”

Kennedy added, “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.”