Standard Bank, Led By South African Banker Sim Tshabalala, Unveils 397 Million Boost For Smmes

Standard Bank Group, a Johannesburg-based financial services giant led by Sim Tshabalala, and the African Development Bank Group AfDB have set up a 397 million R7.3 billion facility to boost small, medium, and micro enterprises SMMEs across the continent. The move is set to widen credit access, stimulate job creation, and bolster economic resilience.

The agreement, formalized by both institutions, includes a R3.6 billion 195.8 million social bond dedicated to businesses generating less than R300 million 16.3 million in annual revenue. A 200 million Risk Participation Agreement, managed through Standard Banks South African unit, will further mitigate lending risks. Loan sizes are capped at R40 million 2.17 million to ensure accessibility for smaller firms.

This financing will support up to 4,000 businesses, helping them scale, create jobs, and strengthen economic resilience, said Kenny Fihla, Standard Bank Group Deputy CEO. With 3.2 million SMMEs contributing 60 percent of South Africas jobs, access to capital remains critical.

South Africas economy has struggled with sub-1 percent growth over the past decade, largely due to limited access to finance for small businesses. The government is targeting a 3 percent expansion by 2025, implementing reforms to improve the ease of doing business.

The AfDB noted that the financing partnership would expand trade finance, mitigate lending risks, and accelerate intra-African trade, which remains among the worlds lowest at under 20 percent.