2026.03.06
On January 27, the Japan International Cooperation Agency (JICA) signed a loan agreement with FirstRand Bank Limited.
This project directly contributes to the “strengthening of efforts to improve the financing gap for micro, small, and medium-sized enterprises (MSMEs)” outlined in the G20 Global Partnership for Financial Inclusion (GPFI) Action Plan, endorsed in the Leaders’ Declaration at the G20 South Africa Summit in November 2025.
JICA has long supported South African enterprises in improving quality, productivity, and competitiveness by leveraging Japan’s experience through the technical cooperation project “Kaizen for Quality and Productivity Improvement.” By combining the promotion of financial inclusion under this project with the achievements of past technical cooperation, further synergies are expected to advance industrial development in South Africa. The initiative is also anticipated to contribute to improving the business environment for private-sector companies operating in the country, including Japanese firms.
The Project is co-financed with DEG (Germany, as Arranger), FMO (Netherlands) and Proparco (France).
Borrower
FirstRand Bank Limited (“FRB”)
Country (Target Areas)
Republic of South Africa
Loan Amount
USD 100 million
Project Title
Project to Promote Sustainable Finance in South Africa
Project Purpose
This project aims to advance financial inclusion for MSMEs, including women and young people by providing long-term loan to FRB to promote their sustainable finance activities such as financial inclusion of micro, small and medium-sized enterprises and financing for renewable energy projects for realization of a sustainable and inclusive society, thereby expanding employment and social participation opportunities for women and young people in the country and contributing to its sustainable economic growth.
Project Component
The loans for this project will be sub-lent through FRB to MSMEs including women and youth owners in the country. At least 30% of JICA loans will be sub-lent exclusively to women-owned MSMEs.
Contribution to SDGs
Goal 5（Gender equality）
Goal 8（Decent work and economic growth）
Goal 17（Partnerships for the goals）
Reference
- Since 1993, the Government of Japan has organized the Tokyo International Conference on African Development (TICAD) in collaboration with the UN, World Bank, African Union, and others. At the most recent TICAD 9 held in Yokohama in August 2025, JICA launched “IDEA (Impact Investing for Development of Emerging Africa),” a public-private partnership initiative to mobilize funds for impact investments in Africa for generating not only economic benefits but also social and environmental impacts. This project serves as a flagship initiative under the policies.
＜References / News release from the Government of Japan＞
- JICA and other G7 development finance institutions participate in the “G7 2X Challenge: Financing for Women” initiative, which aims to leverage funding to promote women’s economic empowerment through entrepreneurship, leadership development, and labor market participation. Since FRB actively hires women for management and staff positions and allocate 30% of JICA’s fund to Women MSMEs, this project also contributes to the 2X Challenge initiative.
＜References / Official Website of 2X Challenge Secretariat＞
President Tanaka visited the FRB’s customer (Local barber shop)
FRB’s Customer: Local barber shop owned by South African entrepreneur
President Tanaka receiving an explanation at the FRB’s customer (Local barber shop)
FRB’s Customer: Local coffee shop providing African specialty coffee
Sns share!
