(Ecofin Agency) - • IFC to guarantee 50% of FirstRand’s $100M SME lending program
• Focus on women-led and climate-related businesses under 60M rand turnover
• Initiative aims to ease access to credit through simplified procedures

South Africa’s FirstRand Bank will lend up to 1.8 billion rands ($100 million) to small and medium-sized enterprises (SMEs), backed by a $50 million partial guarantee from the International Finance Corporation (IFC). The IFC-approved guarantee was confirmed on May 29, 2025, following the initial request in March.

The initiative targets businesses led by women and those active in climate-related sectors such as sustainable agriculture and healthcare. The loan guarantee from the IFC will cover 50% of the total lending amount.

Funds will be distributed through First National Bank (FNB), FirstRand’s commercial banking arm. FNB has seen steady growth in SME lending, reaching 53.9 billion rands in 2024, up from 51.6 billion in 2023. The bank focuses on SMEs with an annual turnover below 60 million rands and reports having streamlined procedures to simplify credit access.

As of June 2024, FNB had extended 50 billion rands in loans to 229,000 women-led businesses in South Africa. It also provides additional services including training programs, business networking, and market access support.

The IFC and FirstRand maintain a strong relationship centered on financing sustainable development and SME growth in South Africa. This new guarantee follows a $150 million loan issued by the IFC in October 2023 to increase SME financing, with a focus on businesses led by women.