The African Development Bank has invested $332 million (ZAR 5.4 billion) in a capital markets security issued by Standard Bank Group Ltd., Africa’s largest bank by assets, to expand financing for small and medium-sized enterprises in South Africa.
The facility is structured as a Flac instrument, a new debt class introduced by the South African Reserve Bank in January 2026 as part of the country’s phased bank-resolution framework. Issued as a social bond and listed on the Johannesburg Stock Exchange, it marks Standard Bank’s first Flac instrument on the exchange dedicated to social use of proceeds and Africa’s first development-finance-institution-supported social Flac of its kind.
Complementing the investment, the AfDB’s Affirmative Finance Action for Women in Africa program is providing a $1 million (ZAR 16 million) technical-assistance grant from the We-Fi window. The funds will support digital payment tools to help women entrepreneurs build verifiable credit histories and deliver enterprise and supplier-development programs for women-led SMEs.
“This investment reflects the African Development Bank’s commitment to strengthening Africa’s financial architecture while directing long-term capital to where it is needed most—South Africa’s small businesses and entrepreneurs,” said Kennedy Mbekeani, the bank’s director general for Southern Africa and country manager for South Africa. “By partnering with Standard Bank Group, we are simultaneously helping to build a more resilient banking system and supporting the SMEs that drive jobs and inclusive growth.”
Luvuyo Masinda, chief executive of corporate and investment banking at Standard Bank Group, said the social Flac issuance will help the group deliver on its purpose of driving Africa’s growth. “SMEs are a critical driver of economic growth and job creation,” he said. “Ensuring these businesses have support and access to finance is imperative to our collective growth aspirations.”
Bill Blackie, chief executive of business and commercial banking, added that the deal and technical-assistance grant will strengthen the bank’s ability to support businesses underpinning inclusive growth, with particular focus on women-led SMEs.
Ahmed Attout, director of the AfDB’s Financial Sector Development Department, described the transaction as catalytic, aimed at encouraging broader adoption of international best practice in banking across the continent.
The deal deepens a partnership that dates to 2008. It follows the AfDB’s November 2024 approval of a ZAR 3.6 billion subordinated-debt facility for Standard Bank Group and a $200 million risk-participation agreement with The Standard Bank of South Africa to support trade finance. By December 2025, Standard Bank had fully utilized the 2024 facility, supporting 5,425 SMEs exceeding its initial target of 4,000—with loans directed to agriculture, retail, wholesale trade and manufacturing.
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