FirstRand partners with Proparco to boost Intra-African trade

Feyisayo Ajayi -
Key Points
  • FirstRand partners with Proparco to become the first Southern African bank in the Trade Finance Guarantee Program, boosting intra-African trade.
  • Rand Merchant Bank expands by tapping Proparco’s issuing banks network, enhancing confirmation capabilities and supporting regional import capacity.
  • The partnership focuses on regional trade while strengthening Asia-Africa trade flows, reinforcing FirstRand's role in driving Africa's economic growth.

FirstRand, a leading financial services group co-founded by South African tycoon Laurie Dippenaar, has partnered with Proparco, the private sector arm of the French Development Agency, to boost intra-African trade. The collaboration makes FirstRand the first Southern African bank to join Proparco’s Trade Finance Guarantee Program as a confirming bank.

Through this partnership, Rand Merchant Bank (RMB), FirstRand’s corporate and investment banking arm, will tap into Proparco’s network of issuing banks to expand its trade finance activities, strengthening confirmation capabilities, increasing import capacity, and promoting trade across Africa.

Deepening a strategic partnership

This new collaboration further strengthens the already robust relationship between Proparco and FirstRand, building on the foundation laid in November 2022, when Proparco granted FirstRand a $100 million climate-finance credit facility.

The latest agreement shifts focus to addressing barriers to trade across Africa, expanding RMB’s financing capacity to support regional trade. In addition to enhancing intra-African trade, the partnership will also facilitate Asia-Africa trade flows, leveraging RMB’s established presence in India.

This strategic alignment highlights the growing trade corridor between Africa and Asia, reinforcing FirstRand's commitment to unlocking trade opportunities that drive economic growth across the continent.

Louis du Plessis, Head of Trade and Working Capital at RMB, echoed this vision, emphasizing the importance of strategic partnerships in enabling seamless trade across Africa.

He stated, “This partnership with Proparco enhances our trade finance capabilities and strengthens our commitment to providing meaningful funding support to clients across Africa. By navigating the continent’s diverse opportunities with well-thought-out solutions, RMB can enable seamless trade and unlock growth potential.”

Dippenaar’s legacy at FirstRand

Co-founded by Laurie Dippenaar in 1977, FirstRand leads Africa’s financial sector with a $24.5 billion market cap. Under Dippenaar’s strategic leadership, the group has transformed banking across the continent, offering diverse financial solutions. His legacy includes the FirstRand Laurie Dippenaar Scholarship, supporting Africa’s emerging talent.

In May 2024, FirstRand secured a $250 million loan from the International Finance Corporation (IFC) to enhance investments in green building projects and affordable housing initiatives.

By leveraging Proparco’s Trade Finance Guarantee Program and its network of issuing banks, FirstRand is strategically placed to drive intra-African trade, reduce financing barriers, and unlock the immense opportunities within the region.