• Introduction
    • OVERVIEW
    • INTRODUCTION TO THE STANDARD BANK GROUP
    • OUR REPORTING SUITE
    • A LETTER FROM OUR CEO
    • STAKEHOLDER ENGAGEMENT
    • ASSURANCE STATEMENT
     
     
     
     
     
     
  • SEE impact areas
    • OVERVIEW
    • IMPACT REPORTING
    • 1.
      FINANCIAL INCLUSION
    • 2.
      JOB CREATION AND ENTERPRISE DEVELOPMENT
    • 3.
      INFRASTRUCTURE
    • 4.
      AFRICA TRADE AND INVESTMENT
    • 5.
      EDUCATION AND SKILLS DEVELOPMENT
    • 6.
      EMPLOYEE DEVELOPMENT AND TRAINING
     
     
  • ESG
    • OVERVIEW
    • ABOUT THIS REPORT
    • MANAGING E&S RISKS AND OPPORTUNITIES
    • OUR DIRECT ENVIRONMENTAL PERFORMANCE
    • VALUING OUR PEOPLE
    • INVESTING IN COMMUNITIES
    • PROMOTING SOUND GOVERNANCE AND INTEGRITY
    • ESG METRICS AND POLICIES
     
     
  • Transformation
    • OVERVIEW
    • INTRODUCTION
    • A LETTER FROM SBSA CE: LUNGISA FUZILE
    • STANDARD BANK’S BEE SCORECARD
    • WHERE TO FIND MORE INFORMATION
     
     
     
     
     
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Finance for entrepreneurs to grow their businesses

A major challenge for small enterprises is managing the consistency and predictability of cash flow. We’re working with our clients to address this challenge, to help businesses get through crunch times without compromising their ability to deliver to their clients. Solutions include credit issues against government contracts, or invoices payable, as well as working capital loans.

THE CHALLENGE

The default risk associated with lending to SMEs makes it difficult and expensive for SMEs to access credit from commercial banks.

SME owners need quick, convenient and real-time solutions to make and receive payments and manage their accounts.

THE
SOLUTION

Partnership with Uber, CMC motors and Suzuki to enable Kenya’s Uber drivers to buy their own vehicles.

Invoice discounting and Enterprise Smart Loans in Ghana, and contract-linked finance for SMEs working for the Limpopo provincial government in South Africa.

A range of digital solutions tailored for SMEs, ncluding Biashara Direct in Tanzania and Enterprise Online in Zambia.
 

THE
IMPACT

More SMEs able to access affordable finance, grow their businesses and create jobs.

Hassle-free banking through digital channels, which saves time and money for SME owners.

 

Signing of the cooperation agreement between the Limpopo Provincial Treasury and Standard Bank.

EXAMPLES OF HOW WE FINANCED ENTREPRENEURS TO GROW THEIR BUSINESSES:
 
STANBIC GHANA

Stanbic Ghana offers our SME clients invoice discounting – a short-term working capital loan against a firm’s debtor book, which sees Stanbic Ghana finance up to 70% of the invoice accepted by a reputable company. We also offer Enterprise Smart Loans, which provide working capital for SMEs in the informal and formal sectors.

STANBIC KENYA

Stanbic Kenya has partnered with Uber Kenya and CMC Motors, a Suzuki franchise holder, to support Uber Chap Chap drivers to purchase fuel-efficient 800cc Suzuki Altos. The Chap Chap service operates in limited areas in central Nairobi, with a significantly cheaper rate per kilometre. The cars are offered at a substantially reduced price to the drivers with support from Suzuki Japan. By October 2018, around 500 drivers had benefited from this collaboration agreement between Stanbic Kenya, Uber Kenya and Suzuki. This programme supports entrepreneurship, job creation and safe mobility.

SOUTH AFRICA

In South Africa,we’ve signed a cooperation agreement with the Limpopo Provincial Treasury in South Africa to provide access to funding for SMEs who have secured government contracts but lack the finance to execute such projects. We have committed R300 million over three years to this initiative. Funding includes a short-term/once-off revolving facility for suppliers undertaking work valued below R500 000; and short-, medium term and asset finance for contracts above R500 000.

STANDARD BANK SOUTH AFRICA’S TSHWARANANG TRUST

Standard Bank South Africa’s Tshwaranang Trust,established in 2016 as a means to provide collateral against which to extend loans to small businesses, experienced a rising default rate during 2018. Concerns were also raised by the relevant regulator regarding the use of a trust mechanism as a means of disbursing enterprise development funds. We have undertaken an extensive review of the model, drawing on the lessons learned to develop better ways of enabling access to finance for SMEs who lack collateral or surety.

  • STANBIC GHANA
  • STANBIC KENYA
  • SOUTH AFRICA
  • STANDARD BANK SOUTH AFRICA’S TSHWARANANG TRUST

Stanbic Ghana offers our SME clients invoice discounting – a short-term working capital loan against a firm’s debtor book, which sees Stanbic Ghana finance up to 70% of the invoice accepted by a reputable company. We also offer Enterprise Smart Loans, which provide working capital for SMEs in the informal and formal sectors.

Stanbic Kenya has partnered with Uber Kenya and CMC Motors, a Suzuki franchise holder, to support Uber Chap Chap drivers to purchase fuel-efficient 800cc Suzuki Altos. The Chap Chap service operates in limited areas in central Nairobi, with a significantly cheaper rate per kilometre. The cars are offered at a substantially reduced price to the drivers with support from Suzuki Japan. By October 2018, around 500 drivers had benefited from this collaboration agreement between Stanbic Kenya, Uber Kenya and Suzuki. This programme supports entrepreneurship, job creation and safe mobility.

In South Africa, we’ve signed a cooperation agreement with the Limpopo Provincial Treasury in South Africa to provide access to funding for SMEs who have secured government contracts but lack the finance to execute such projects. We have committed R300 million over three years to this initiative. Funding includes a short-term/once-off revolving facility for suppliers undertaking work valued below R500 000; and short-, medium-term and asset finance for contracts above R500 000.

Standard Bank South Africa’s Tshwaranang Trust, established in 2016 as a means to provide collateral against which to extend loans to small businesses, experienced a rising default rate during 2018. Concerns were also raised by the relevant regulator regarding the use of a trust mechanism as a means of disbursing enterprise development funds. We have undertaken an extensive review of the model, drawing on the lessons learned to develop better ways of enabling access to finance for SMEs who lack collateral or surety.

Improving financial access with digital solutions for SMEs

The growth of an inclusive economy depends significantly on the growth of the SME sector. We are developing digital solutions for SMEs that make their business easier to operate and enable easier access to the financial services they need to grow. We have developed various products to assist SMEs.

  • STANBIC BANK ZAMBIA
  • STANBIC BANK TANZANIA

Stanbic Bank Zambia’s SME customers can use Enterprise Online to issue bulk instant money transactions. Employees without bank accounts can be paid using the recipients’ phone numbers – a cheaper and more secure option than withdrawing large amounts of cash. The issuer receives a PIN and the recipient receives a voucher number. Customers can also view their past transactions. Details of each transaction are stored, enabling customers to repeat similar transactions without having to re-enter the same details.

Stanbic Bank Tanzania, recognised at the Banker Africa awards as Tanzania’s best SME bank, launched Biashara Direct in 2018, a digital solution for convenient, hassle-free banking for SMEs. The service includes a dedicated business banker to assist enterprises with financial advice via phone or email. It includes a Swahili language option. The product offers USSD payment solutions through all mobile phones, and can accommodate accounts with multiple signatories. SMEs can transfer funds, pay bills and monitor the activities on their accounts.

Desideria Mwegelo
HEAD: MARKETING AND COMMUNICATIONS, STANBIC BANK TANZANIA
“At Stanbic Bank, we realise that everything we do sets something in motion for the client, that our actions have consequences for the client and that’s why it’s important for us to put the client at the centre of everything we do. We draw our inspiration from the young Tanzanians who are eager to unlock the tremendous opportunities in the country through innovation and diversification. We want to empower their dreams of financial success.”

 

Helping businesses to thrive

Businesses, large and small, require access to finance to expand their operations and improve productivity. Accessing finance enables them to access supply chains and buy equipment, access new markets, create jobs and boost profitability. We invested in various opportunities across Africa from manufacturing in Botswana to agriculture in Nigeria and Zimbabwe, and the taxi and mining sectors in South Africa.

THE CHALLENGE
Access to finance for African small businesses to access inputs and equipment to enable them to improve productivity, access new markets, boost profitability and create jobs.
Access to finance for larger businesses who have the capacity to develop local value chains.
THE SOLUTION
USD125 million loan guarantee, with partner institutions, to support lending to Botswana’s local diamond beneficiation companies.
Partnership with the Nigerian government to provide a USD27 million inancing portfolio for Nigeria’s agri-business value chain, and bespoke financial solutions for small-scale farmers.
USD30 million loan to enable procurement of grain for manufacture, from local farmers in Zimbabwe.
Participation in a a USD1.7 billion empowerment deal in support of SA’s taxi industry, and partnering with Seriti Resources to enable the acquisition of Anglo American’s Eskom-supplying coal assets.
THE IMPACT
Expansion of value chains to include local small enterprises.
Creation of sustainable jobs, and support for economic growth in local communities.

 

EXAMPLES OF HOW STANDARD BANK FACILITATED SUCH EXPANSION IN 2018 INCLUDE THE FOLLOWING:
 
STANBIC BANK BOTSWANA

Stanbic Bank Botswana,the the Overseas Private Investment Corporation (US), and Lazare Kaplan International signed a USD125 million loan guarantee, which will encourage and support lending to local diamond beneficiation companies, while allowing the organisations involved to share credit risk. The agreement will strengthen the diamond beneficiation supply chain in Botswana, promote local job creation, diversify Botswana’s economic growth, and bring global trade opportunities.

STANDARD BANK SOUTH AFRICA

Standard Bank South Africa advised on, structured and part-financed a major black economic empowerment deal for the South African National Taxi Council (Santaco). The R1.7 billion deal enabled Santaco to acquire a 25% stake in SA Taxi, a subsidiary of Transaction Capital that specialises in sales, financing and insurance of minibus taxis. The deal will benefit thousands of taxi operations and drivers, enabling Santaco to expand into higher-margin upstream sectors, including vehicle sales, finance, and insurance.

STANBIC IBTC

Stanbic IBTCis working to enhance its services to Nigeria’s small-scale farmers, who struggle to access is working to enhance its services to Nigeria’s small-scale farmers, who struggle to access finance to purchase the equipment and inputs needed to improve productivity and yield. Our products include financing solutions to support mechanisation, and crop and weather-related insurance. We aim to provide complete solutions to smallholder farmers to enable business growth and ensure long-term sustainability and food security.

STANDARD BANK SOUTH AFRICA

Standard Bank South Africafinanced Seriti Resources’ acquisition of Anglo American’s Eskom-supplying coal assets. Seriti is a 91% black-owned and controlled South African mining company. The acquisition makes Seriti Eskom’s largest black-controlled coal supplier.

  • STANBIC BANK BOTSWANA
  • STANDARD BANK SOUTH AFRICA
  • STANBIC IBTC
  • STANDARD BANK SOUTH AFRICA

Stanbic Bank Botswana, the Overseas Private Investment Corporation (US), and Lazare Kaplan International signed a US$125 million loan guarantee, which will encourage and support lending to local diamond beneficiation companies, while allowing the organisations involved to share credit risk. The agreement will strengthen the diamond beneficiation supply chain in Botswana, promote local job creation, diversify Botswana’s economic growth, and bring global trade opportunities.

Standard Bank South Africa advised on, structured and part-financed a major black economic empowerment deal for the South African National Taxi Council (Santaco). The R1.7 billion (USD121.8 million) deal enabled Santaco to acquire a 25% stake in SA Taxi, a subsidiary of Transaction Capital that specialises in sales, financing and insurance of minibus taxis. The deal will benefit thousands of taxi operations and drivers, enabling Santaco to expand into higher-margin upstream sectors, including vehicle sales, finance, and insurance.

Stanbic IBTC is working to enhance its services to Nigeria’s small-scale farmers, who struggle to access finance to purchase the equipment and inputs needed to improve productivity and yield. Our products include financing solutions to support mechanisation, and crop and weather-related insurance. We aim to provide complete solutions to smallholder farmers to enable business growth and ensure long-term sustainability and food security.

Standard Bank South financed Seriti Resources’ acquisition of Anglo American’s Eskom-supplying coal assets. Seriti is a 91% black-owned and controlled South African mining company. The acquisition makes Seriti Eskom’s largest black-controlled coal supplier.