In order to strengthen the financing of very small, small and medium-sized enterprises (SMEs) and the development of trade in Africa, the African Development Bank Group (AfDB) has signed a major financial agreement with the Standard Bank Group (Sbg). The signing ceremony took place on Monday, February 24, 2025.

The funding will support up to 4,000 businesses, helping them grow their businesses, create jobs, and contribute to economic resilience. According to a press release, “the deal includes an investment of 3.6 billion rand in a social bond and a $200 million Risk Participation Agreement (Apr) for the Standard Bank of South Africa Limited (Sbsa). This initiative strengthens Standard Bank's lending capacity, ensuring better access to finance for SMEs, a key driver of economic growth and job creation in South Africa.”

The same source indicates that investing in social bonds promotes inclusive economic development, especially for SMEs with a turnover of less than R300 million and loans under R40 million. According to the Deputy CEO of Standard Bank Group and CEO of Sbsa, Kenny Fihla, “this major partnership strengthens our ability to support SMEs, which form the backbone of the South African economy. With around 3.2 million SMEs representing 60% of jobs, it is essential to guarantee access to finance. This initiative is in line with our Sustainable Finance Framework and our commitment to financial inclusion.”

Pour sa part, Leila Mokaddem, directrice générale pour l' Afrique australe à la Banque africaine de développement Esteem that “this collaboration marks an important step in our long-standing partnership and demonstrates our shared commitment to supporting the growth of SMEs and improving trade finance in Africa. Expanding financial inclusion and business opportunities allows businesses to drive economic transformation and regional integration. The Standard Bank Group is a strategic partner in our shared vision for the economic development of the continent.”