IFC and FirstRand Bank Partner to Widen Access to Finance for Small Businesses in South Africa

Johannesburg, South Africa, September 18, 2025 – IFC today announced a $100 million loan to FirstRand Bank Limited (FRB) to increase access to finance to underserved micro, small and medium enterprises (MSMEs) in South Africa, targeting high-impact sectors that traditionally struggle to access funding. The loan (equivalent to 1,8 billion South African Rands) will enable FNB, a division of FRB, to help unlock crucial growth opportunities for thousands of smaller businesses in the country, supporting South Africa’s economic growth and job creation efforts.

Although South Africa has a well-developed financial sector, only about 5 percent of formal MSMEs have access to credit, according to the MSME Finance Gap report. Meanwhile, SMEs contribute to about 34 percent of South Africa’s economic output and 60 percent of all jobs.

“Our longstanding partnership with IFC continues to enable the bank to support MSMEs, which have been a key contributor to FNB’s growth and to the wider needs of South Africa,” said Mary Vilakazi, CEO of FirstRand.

“South Africa's small business sector is central to employment, innovation and economic growth. Through this investment, IFC and FirstRand Bank will help create jobs, strengthen value chains, and improve livelihoods," said Aliou Maiga, IFC’s Regional Industry Director for the Financial Institutions Group in Africa.

This project builds on IFC’s decades-long partnership with FRB, which is the largest lender to MSMEs in South Africa. It forms part of IFC’s broader strategic efforts in South Africa to reduce inequality, promote job creation, and support sustainable investments in the country.

IFC has a current investment portfolio in South Africa of over $4 billion (equivalent to 76 billion South African Rand) and an advisory portfolio of about $24 million (equivalent to R434 million South African Rand). IFC’s focus areas in the country include inclusive finance, construction and real estate, climate resilience, access to electricity, utilities, and strengthening the business environment.