African Development Bank Joins Forces with Standard Bank for SMME Financing

(3 Minutes Read)

The African Development Bank Group and Standard Bank Group have established a strategic partnership to enhance funding access for small, medium, and micro enterprises (SMMEs) and promote trade across Africa.

Central to this initiative is a R3.6 billion social bond investment and a USD 200 million Risk Participation Agreement aimed at bolstering Standard Bank’s lending capabilities. This partnership targets approximately 3.2 million SMMEs in South Africa, which contribute 60% of employment, supporting up to 4,000 businesses in expanding operations and job creation.

The investment focuses on SMMEs with annual turnovers below R300 million and loan sizes under R40 million, aligning with Standard Bank’s Sustainable Finance Framework. Additionally, the Risk Participation Agreement facilitates trade finance, particularly in Low-Income Countries, enhancing intra-African trade and supporting the African Continental Free Trade Area (AfCFTA).

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Leila Mokaddem from the African Development Bank noted the initiative’s role in economic transformation and regional integration, aligning with the Bank’s Ten-Year Strategy (2024–2033). Ahmed Attout emphasised that improving access to capital is crucial for SMME growth. This collaboration highlights the importance of strategic partnerships in fostering sustainable economic development and ensuring financial solutions remain accessible for key economic drivers across Africa.