Africa-Press – Eswatini. South Africa’s FirstRand Bank is set to provide up to 1.8 billion rands ($100 million) in loans to small and medium-sized enterprises (SMEs), supported by a $50 million partial guarantee from the International Finance Corporation (IFC). The IFC officially approved the guarantee on May 29, 2025, following an initial request submitted in March.
This initiative specifically targets businesses led by women, as well as those operating in climate-focused sectors such as sustainable agriculture and healthcare. The IFC guarantee will cover 50% of the total loan amount.
Funds will be channeled through First National Bank (FNB), the commercial banking division of FirstRand. FNB has experienced consistent growth in SME lending, with figures rising to 53.9 billion rands in 2024 from 51.6 billion in 2023. The bank primarily serves SMEs with annual revenues under 60 million rands and has implemented streamlined processes to make credit more accessible.
As of June 2024, FNB had issued 50 billion rands in loans to 229,000 women-led businesses across South Africa. In addition to financing, the bank offers a range of support services, including training programs, business networking opportunities, and assistance in accessing markets.
FirstRand and the IFC share a longstanding partnership focused on promoting sustainable development and SME growth within South Africa. This latest loan guarantee follows a $150 million IFC loan granted in October 2023 to boost SME lending, with a strong emphasis on supporting women-owned enterprises.
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