Standard Bank and IFC partner to boost local currency lending across Africa

Timilehin Adejumobi -
Key Points
  • Standard Bank and IFC partner to enhance local currency lending, addressing liquidity barriers across Africa.
  • The collaboration focuses on cross-currency swaps and derivatives to boost access to financing for businesses.
  • Under Sim Tshabalala, Standard Bank reports resilient growth and expands presence across sub-Saharan Africa.

Standard Bank, a Johannesburg-based financial services giant led by South African banker Sim Tshabalala, has secured a strategic partnership with the International Finance Corporation (IFC) to bolster local currency lending and support development projects across Africa. 

The deal, aimed at addressing the continent's persistent currency liquidity challenges, will focus on facilitating cross-currency swaps and derivatives, helping businesses access financing in local currencies.

Mitigating currency risk and expanding local currency exposure

"The agreement with IFC enhances our ability to drive meaningful impact across the countries where we operate," said Kayode Solola, head of global markets for Africa regions at Standard Bank Group. He highlighted growing investor interest in Africa, fueled by favorable market reforms and strong returns.

Both institutions emphasize sustainable development, aligning their efforts with global initiatives such as the UN Sustainable Development Goals, the Paris Agreement, and the African Union’s Agenda 2063. The partnership underscores Standard Bank’s commitment to fostering economic growth while addressing pressing climate and social challenges.

Standard Bank strengthens its ability to mitigate currency risks and offer local currency exposure in emerging markets. Its broad footprint makes it a key player in Africa’s financial sector. In fiscal year 2024, the IFC reached a milestone of $5.8 billion in local currency financing, with commitments spread across 34 currencies.

Expansion amid economic and geopolitical risks

Standard Bank, Africa's largest lender by assets, operates in 19 countries across sub-Saharan Africa, including Uganda, Tanzania, the DRC, Kenya, South Sudan, and Ethiopia. With a market value of over $23 billion on the Johannesburg Stock Exchange, it is a major player in the continent's financial sector.

Led by Sim Tshabalala, Standard Bank is expanding in sub-Saharan Africa and exploring new markets. Despite macroeconomic and geopolitical challenges, the bank posted a resilient first half of 2024, with headline earnings rising 4 percent to R22 billion ($1.22 billion) from R21.1 billion ($1.17 billion).

The bank’s latest partnership with IFC builds on past initiatives, including its 2020 green bond, a $250 million sustainable loan for climate and affordable housing in South Africa, and a $300 million sustainable Tier 2 capital loan. Its partnership with Meridiam also strengthens its role in Africa's alternative energy infrastructure.