Standard Bank received over R3,6 billion from the AFDB towards small business support
Standard Bank Group has received an amount of about R3, 6 billion to increase trade in Africa and support small and medium-sized enterprises (SMMEs).
The African Development Bank Group’s (AFDB) Board approved two financial facilities for the Standard Bank Group, this week.
This includes an amount of about $200 million, to enhance trade finance across Africa, reducing constraints for local banks and promoting intra-African trade.
In addition, the Group has received a ZAR 3.6 billion Social Bond to finance small business, through lending, under the Group’s Sustainable Finance Framework.
Solomon Quaynor, Vice President for Private Sector, Infrastructure, and Industrialisation at the AFDB said “this partnership reflects our commitment to sustainable growth. By supporting SMEs, we’re building an inclusive and prosperous Africa.”
Standard Bank Group’s Deputy CEO Kenny Fihla hailed the African Development Bank Group as a strategic partner.
“Structuring the funding as a social bond highlights the importance of the group’s social impact and aligns with the continued support of our existing strategy within our Business and Commercial Banking division to drive financial inclusion through lending to SMEs in our biggest market, South Africa,” said Fihla.
Fihla, who is also CEO of Standard Bank of South Africa Limited, explained that the Risk Participation Agreement facility would enhance the organisation’s trade finance capabilities and contribute towards the group’s strategic objective of bridging the trade finance gap in Africa.
“This will ultimately reduce trade financing constraints for local African banks and promote intra-African trade” he said.