Financial services company, FirstRand, set to lend 1.8 billion Rand to small and medium-sized enterprises (SMEs), supported by a $50 million guarantee from the International Finance Corporation (IFC).
In a significant move to boost small and medium-sized enterprises (SMEs) in South Africa, FirstRand Bank has initiated a loan program worth up to 1.8 billion rands. The International Finance Corporation (IFC), a member of the World Bank Group, will provide a $50 million partial guarantee for these loans, aiming to support businesses led by women and those operating in climate-focused sectors such as sustainable agriculture and healthcare.
The funds for the loan program will be disbursed through First National Bank (FNB), the commercial banking division of FirstRand. FNB has implemented streamlined processes to make credit more accessible for SMEs, and in addition to financing, offers support services such as training programs, business networking opportunities, and assistance in accessing markets.
This loan program is a testament to the longstanding partnership between the IFC and FirstRand Bank, which is focused on promoting sustainable development and SME growth within South Africa. In October 2023, the IFC granted a $150 million loan to FirstRand Bank to boost SME lending, with a strong emphasis on supporting women-owned enterprises.
As of June 2024, FNB has issued 50 billion rands in loans to 229,000 women-led businesses across South Africa. The bank has shown consistent growth in SME lending, with figures rising to 53.9 billion rands in 2024 from 51.6 billion in 2023. FNB primarily serves SMEs with annual revenues under 60 million rands.
The IFC's guarantee for the new loan program covers 50% of the total loan amount, providing a safety net for both the bank and the borrowers. The guarantee was approved by the IFC on May 29, 2025, following an initial request submitted in March.
The initiative is expected to provide much-needed support to SMEs, which are crucial drivers of economic growth and job creation in South Africa. The loan program is a significant step towards promoting gender equality and sustainable development in the country's business sector.
Financing for the SME loan program will be disbursed through First National Bank (FNB), a division of FirstRand Bank, which has streamlined processes to make credit more accessible for SMEs. The International Finance Corporation (IFC) has granted a 50% guarantee for these loans, aimed at supporting women-led businesses and those in climate-focused sectors like sustainable agriculture and healthcare.
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