The African Development Bank Group (BAD) and the Standard Bank Group (SBG) signed a historic agreement to increase financing for micro, small and medium-sized enterprises (SMEs) and expand trade in Africa.

The agreement includes an investment of 194 million dollars in a social obligation and a Risk Participation Agreement (RPA) of 200 million dollars for Standard Bank South Africa (SBSA). This initiative strengthens Standard Bank's lending capacity, ensuring greater access to finance for SMEs, a key driver of economic growth and job creation in South Africa.

Investing in social bonds promotes inclusive economic development, especially for SMEs with a turnover of less than 16,2 million dollars and loans worth less than 2,16 million dollarsThis funding will support up to 4 companies, helping them expand their operations, create jobs, and contribute to economic resilience.

“This historic partnership strengthens our ability to support SMEs, the backbone of South Africa's economy.”

“With around 3,2 million SMEs accounting for 60% of jobs, ensuring access to financing is essential.”

“This initiative aligns with our Sustainable Financing Framework and our commitment to financial inclusion.”

In addition to the social obligation, the RPA of 200 million dollars improves trade finance in Africa, focusing on low-income countries and states in transition. This agreement allows local banks to increase lending through risk-sharing, closing the trade finance gap and helping to promote intra-African trade.

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Leila Mokaddem, AfDB Director General for Southern Africa, highlighted the broader impact:

“This collaboration marks a significant milestone in our long-standing partnership and is a testament to our shared commitment to supporting SME growth and improving trade finance across Africa.”

“Expanding financial inclusion and business opportunities enables companies to drive economic transformation and regional integration.”

The SBG Group continues to be a strategic partner in our shared vision for economic development on the continent.”

This initiative aligns with the AfDB's Ten-Year Strategy (2024-2033), which prioritizes industrialization, regional integration, and improving the quality of life in Africa. It also supports the SBG's Sustainable Financing Framework, reinforcing both institutions' commitment to promoting green and inclusive growth.

Ahmed Attout, Director of the AfDB’s Financial Sector Development Department, said:

“We are proud of this transaction which demonstrates our shared commitment to sustainable finance.”

“By supporting businesses, we create long-term economic opportunities and financial resilience.”

Kenny Fihla reaffirmed the importance of collaboration:

“By providing much-needed capital, we are helping businesses overcome challenges and thrive.”

“This partnership illustrates the power of collaboration in driving significant economic and social change in Africa.”