Women-led small businesses and those involved in climate-related activities will soon have easier access to more affordable loans.

FirstRand Bank is collaborating with the IFC to set up a ZAR1.8 billion loan facility through the IFC’s small loan guarantee programme, according to Africa Business Communities.

The IFC will cover half the risk of the loan portfolio by leveraging financing from the European Fund for Sustainable Development and a private-sector blended finance facility.

First Rand said the risk-sharing facility (RSF) will allow its commercial bank, FNB, to scale its lending to local SMEs.

‘By catalysing more sustainable finance and demonstrating the power of partnership, we hope to inspire other financial institutions to replicate this model, accelerating sustainable growth across the country,’  said Cláudia Conceição, IFC’s regional director for Southern Africa.

A performance-based incentive grant will kick in once 35% of the RSF portfolio targets climate finance to SMEs.

10 June 2025
Image: Freepik