News

IFC Backs FirstRand’s $100M SME Loan Program in South Africa

IFC Backs FirstRand’s $100M SME Loan Program in South Africa
Friday, 30 May 2025 20:08

• 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.

On the same topic
• Ivanhoe Mines expects copper production at Kamoa-Kakula to fall to 420,000 tons in 2025• The revision follows a seismic incident at the Kakula mine that...
• Vodacom now sources 100% of its purchased electricity from renewables.• Energy demand in Africa’s telecom sector is rising with mobile and data growth.•...
• Benin launches $1.4 billion five-year tourism development plan• Target: 2 million annual visitors and 13.4% GDP share from tourism by 2030•...
• Benin launches $1.4 billion five-year tourism development plan• Target: 2 million annual visitors and 13.4% GDP share from tourism by 2030•...
Most Read
01

BCEAO lowers main rate from 3.50% to 3.25% effective June 16, 2025 Inflation eased to 2.3% in...

BCEAO Cuts Key Rate to 3.25% to Stimulate Regional Growth
02

AfDB raised $3 billion in a two-part bond issuance in U.S. dollars. The deal included th...

AfDB Raises First-Ever 10-Year Global Dollar Bond
03

IFC to acquire stake in KERA Health, an AI-based e-health platform in Senegal Funding to supp...

IFC Plans $10mln Investment in Senegalese AI Health Startup
04

• WAEMU’s inflation dropped from 2.2% in March to 1.5% in April 2025• BCEAO attributes the decline t...

WAEMU Inflation Rate Falls to 1.5% in April 2025
05

• Funding resumes after 2023 suspension tied to Uganda’s anti-LGBT legislation• Three new projects a...

World Bank Resumes Support to Uganda Despite LGBT Law Concerns
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.