The African Development Bank Group (AfDB) and Standard Bank Group (SBG) have signed a landmark agreement to expand financing for small, medium, and micro enterprises (SMMEs) and strengthen trade across Africa.
The deal includes a R3.6 billion social bond investment and a $200 million Risk Participation Agreement (RPA) for Standard Bank of South Africa Limited (SBSA). This initiative enhances Standard Bank’s ability to lend to SMMEs, a crucial sector that drives economic growth and job creation in South Africa.
The social bond targets businesses with an annual turnover below R300 million and loan sizes under R40 million, aiming to support up to 4,000 enterprises. By improving access to capital, the investment will help these businesses expand, create jobs, and contribute to economic resilience.
Kenny Fihla, Deputy CEO of Standard Bank Group and CEO of SBSA, described the partnership as a milestone in supporting SMMEs, which account for 60% of jobs in South Africa. He emphasized that increasing financial access aligns with the bank’s Sustainable Finance Framework and commitment to financial inclusion.
Beyond the social bond, the $200 million RPA will strengthen trade finance across Africa, particularly in low-income and transition economies. By sharing risks, the agreement enables local banks to increase lending, close trade finance gaps, and promote intra-African commerce.
Leila Mokaddem, AfDB’s Director General for Southern Africa, highlighted the initiative’s broader impact, noting that it reinforces financial inclusion, trade expansion, and economic integration. She reaffirmed Standard Bank as a key partner in AfDB’s development agenda.
The agreement aligns with AfDB’s Ten-Year Strategy (2024–2033), which prioritizes industrialization, regional integration, and economic transformation. It also supports Standard Bank’s sustainability goals, promoting green and inclusive growth.
Ahmed Attout, AfDB’s Director of Financial Sector Development, described the transaction as a demonstration of shared commitment to sustainable financing, while Fihla reiterated that the collaboration would empower businesses to overcome challenges and drive economic progress across Africa.
