- August 3, 2026
- Posted by: vitalclick
- Category: Investments
The African Development Bank (AfDB) has invested $332m (about R5.4bn) in a capital markets security issued by Standard Bank Group to expand financing for small and medium-sized enterprises (SMEs) in South Africa.
From left: Bill Blackie, chief executive of Business and Commercial Banking at Standard Bank Group, Kennedy Mbekeani, African Development Bank director general for Southern Africa and country manager for South Africa, and Luvuyo Masinda, chief executive of corporate and Investment Banking at Standard Bank Group | image supplied
Alongside the investment, the bank’s Affirmative Finance Action for Women in Africa (AFAWA) programme will provide a $1m (about R16m) technical assistance grant aimed at improving access to finance for women-owned businesses.
According to the organisations, the funding will strengthen Standard Bank’s capacity to finance SMEs, with the bank committing to allocate the full R5.4bn to qualifying businesses, including women-led enterprises.
The investment is structured as a Flac instrument, a new class of debt introduced by the South African Reserve Bank in January 2026 as part of reforms to the country’s banking resolution framework. The security has also been issued as a social bond listed on the Johannesburg Stock Exchange (JSE), making it the first Standard Bank Flac instrument listed on the exchange with proceeds dedicated to social development.
Kennedy Mbekeani, the African Development Bank’s director general for Southern Africa and country manager for South Africa, said the investment supports both the country’s financial system and the small businesses that drive employment and economic growth.
The technical assistance grant will fund initiatives to help women entrepreneurs overcome financing barriers, including digital payment tools to build credit histories and enterprise and supplier development programmes.
Luvuyo Masinda, chief executive of Corporate and Investment Banking at Standard Bank Group, said SMEs remain a key driver of South Africa’s economy, noting that around 3.2 million SMEs account for about 60% of jobs in the country.
Bill Blackie, chief executive of Business and Commercial Banking at Standard Bank, said the partnership would strengthen the bank’s ability to support businesses while providing targeted assistance to women-led SMEs.
The transaction builds on an existing partnership between the African Development Bank and Standard Bank that dates back to 2008. It follows the bank’s approval in 2024 of a R3.6bn subordinated debt facility for Standard Bank Group and a $200m risk participation agreement to support trade finance across Africa.
According to Standard Bank, the 2024 facility had been fully utilised by December 2025, supporting 5,425 SMEs across sectors including agriculture, manufacturing, retail and wholesale trade, exceeding its initial target of 4,000 businesses.