BY: TANA MALINGA
First National Bank (FNB) continues to strengthen South Africa’s informal and community economy through an R18 billion funding commitment that now supports more than 250,000 entrepreneurs nationwide. In the most recent financial year alone, the bank expanded this portfolio by over R2 billion, enabling more small business owners to access the capital needed to sustain and grow their enterprises.
Beyond financial metrics, the impact is visible in job creation, household stability, and stronger local economies. The informal sector employs nearly one in five working South Africans and contributes an estimated R750 billion to the national economy, making access to finance a critical factor in business survival and expansion.
For many informal enterprises, including spaza shops, salons, taverns, hairdressers, and local logistics providers, traditional banking requirements have historically been a barrier. FNB’s model addresses this gap by evaluating real-world business performance indicators such as consistent supplier and wage payments, rather than relying solely on formal documentation and collateral.
A practical example is a salon owner who can access working capital based on daily card sales. During peak demand periods such as the festive season, quick access to funding allows the owner to increase stock and hire temporary staff.
Repayments are structured as a small percentage of daily sales, helping maintain stable cash flow.
Similarly, tavern owners benefit from owning payment devices outright instead of paying monthly rental fees, reducing operating costs while offering customers convenient alternatives to cash.
Key impact highlights include:
R18 billion in community economy lending has enabled thousands of businesses to expand, innovate, and create employment.
Advances to micro, small, and medium enterprises (MSMEs) grew by 20% in FY2025, including a 28% increase among businesses with turnover up to R5 million.
MSME deposits increased by 20% overall and 27% within the R0-R5 million turnover segment.
High-activity sectors such as spaza shops, salons, taverns, and local logistics providers continue to outperform, with demand for working capital solutions rising between 28% and 30% across lower turnover segments.
The broader impact extends beyond financial performance. Access to funding enables spaza shops to withstand slow trading periods, salons to train and employ young people, and taverns to invest in safer and more efficient operations.
In a country where the community economy serves as a critical livelihood source, particularly for youth facing limited employment opportunities, increased funding access supports greater economic inclusion and resilience.
FNB’s support extends beyond financing. During the past year, more than 3,400 entrepreneurs attended business literacy workshops, while hundreds participated in networking events and mentorship programmes. Digital payment solutions and platforms such as nav» Marketplace are also helping businesses connect with new customers and suppliers.
“Our approach is about understanding the realities of the community economy,” says José Gomes, Business Development Head at FNB Commercial. “We assess how businesses manage day-to-day financial responsibilities, paying suppliers, staff, and landlords on time, rather than focusing only on paperwork. This enables more entrepreneurs to access finance, manage cash flow, and grow sustainably.”
These outcomes represent more than financial statistics. They reflect resilience, opportunity, and inclusive growth. Through continued investment and support, FNB aims to help community-based businesses overcome longstanding barriers and contribute meaningfully to a more inclusive South African economy
