The African Development Bank Group and Standard Bank Group (SBG) have signed a landmark agreement to increase funding for small, medium, and micro enterprises (SMMEs) while expanding inclusive trade across Africa.
On its part, Standard Bank of South Africa Limited has signed a $196.2 million social bond investment and $200 million risk participation agreement (RPA) to improve its lending capacity and finance access for small and medium enterprises (SMEs).
The investment aims to support up to 4,000 businesses, promoting inclusive economic development and job creation and contributing to economic resilience.
In addition to the social bond, the $200 million RPA enhances trade finance across Africa, focusing on low-income countries and transition states. This agreement enables local banks to increase lending by sharing risk, bridging the trade finance gap, and promoting intra-African trade.
Deputy CEO of Standard Bank Group and CEO Standadard Bank SA, Kenny Fihla, welcomed the investment, stating, “This landmark partnership strengthens our ability to support SMMEs, the backbone of South Africa’s economy. With approximately 3.2 million SMMEs accounting for 60% of jobs, ensuring access to finance is crucial. This initiative aligns with our Sustainable Finance Framework and our commitment to financial inclusion.”
Director General of Southern Africa at the African Development Bank, Leila Mokaddem highlighted the broader impact, saying “This collaboration marks a significant milestone in our long-standing partnership and is a testament to our shared commitment to supporting SMMEs’ growth and enhancing trade finance across Africa. Expanding financial inclusion and trade opportunities empowers businesses to drive economic transformation and regional integration. The Standard Bank Group remains a strategic partner in our shared vision for economic development on the continent.”
This initiative aligns with the African Development Bank’s Ten-Year Strategy (2024–2033), which prioritizes industrialization, regional integration, and improving the quality of life in Africa. It also supports Standard Bank’s Sustainable Finance Framework, reinforcing both institutions’ commitment to fostering green and inclusive growth.
“We are proud of this transaction, demonstrating our shared commitment to sustainable financing. By supporting businesses, we create long-term economic opportunities and financial resilience,” stated Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank.
Fihla reaffirmed the significance of the collaboration: “By providing much-needed capital, we are helping enterprises overcome challenges and thrive. This partnership illustrates the power of collaboration in driving meaningful economic and social change in Africa.”