South African banker Mary Vilakazi-led FirstRand secures $310 million AfDB funding

FirstRand Bank, the wholly owned subsidiary of the FirstRand Group, a leading financial services group led by South African banker Mary Vilakazi, is set to receive a $310 million financing package from the African Development Bank Group (AfDB) after board approval this week. 

The funding is designed to widen access to credit for micro, small and medium-sized businesses across South Africa, with an emphasis on women-owned firms and agricultural enterprises. The AfDB’s support reflects its confidence in FirstRand’s commercial banking arm, FNB, and its ability to reach underserved businesses. Bank officials say the partnership aims to strengthen private-sector growth and broaden economic participation across the country.

Gender-focused and agriculture support 

The package includes a $200 million line of credit for MSMEs, a $100 million facility dedicated to women-led businesses, and $10 million in concessional funding from the Agri-Food SME Catalytic Financing Mechanism for women-owned agricultural firms.

AfDB Southern Africa Director General Kennedy Mbekeani said the approval “underscores the Bank’s commitment to opening capital channels for the businesses that keep South Africa working.” 

A notable element is the $110 million earmarked specifically for women entrepreneurs. The allocation aligns with the Bank’s Affirmative Finance Action for Women in Africa initiative, which seeks to reduce long-standing gaps in financing for women-led enterprises.

Many smallholder farmers—particularly women—still struggle to secure bank loans despite their key role in food production. The program will be supported by technical assistance to improve the credit readiness of women-owned enterprises, strengthen FNB’s agriculture portfolio, and develop alternative credit-scoring tools suited to smaller borrowers.

FirstRand deepens reach under Mary Vilakazi

Founded in 1977 by Laurie Dippenaar, FirstRand is Africa’s largest financial services group, with a market cap of $19.8 billion. CEO Mary Vilakazi, who took the top job in April 2024, has maintained strict capital discipline while expanding in South Africa, the UK and selected African markets.

Profit for the year ended June rose 10 percent to $2.6 billion. The group recently agreed to acquire a 20.1 percent stake in Bassim Haidar’s fintech Optasia ahead of its planned Johannesburg IPO and earlier secured regulatory approval to acquire HSBC South Africa’s operations.