Industry and economy
Small and medium enterprises (SMEs) are the backbone of South Africa's economy. Recognising their potential to drive inclusive economic development, FNB has taken another bold step to increase funding support for local businesses through two pioneering initiatives.
FNB has partnered with the International Finance Corporation (IFC) to secure a R1.8 billion credit risk-sharing facility under the IFC's Small Loan Guarantee Program, part of a broader commitment to unlock funding for SMEs. Backed by the European Commission, the program enables FNB to safely extend more credit while sharing risk, supporting businesses that are often underfunded due to perceived risk.
In parallel, FirstRand Bank raised R2.5 billion through a highly successful social bond issue, nearly three times oversubscribed by the market. This capital is earmarked for women-led businesses, a key focus area for FNB, which already boasts a R50 billion loan book in this segment.
"FNB continues to lead in innovative SME finance," says Harry Kellan, CEO of FNB. "Our new funding capacity allows us to drive real transformation in sectors critical to our country's future - like agriculture, rural development, and healthcare, while ensuring we uplift women entrepreneurs at scale."
With this enhanced funding, FNB is poised to empower even more SMEs across South Africa, fostering economic resilience, employment, and inclusive growth, one unstoppable business at a time.
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